South Africa, Zimbabwe in Talks on $500 Million Dam for Industrial Water Supply, Report Says

South Africa and Zimbabwe are in discussions over a potential $500 million dam project in Zimbabwe designed to supply water to a major industrial hub in South Africa's Limpopo province, Bloomberg reported on Monday, citing documents it had seen.

The proposed Thuli Moswa dam would address growing water demands for the energy-intensive industries planned for the region.

Project Details

The dam, slated for construction in Thuli, Zimbabwe, would be a significant cross-border infrastructure undertaking. If the project proceeds, South Africa would pay for the water under a long-term agreement lasting between five and 35 years, according to the documents.

• Storage Capacity: Approximately 430 million cubic meters.
• Water Supply: Could provide up to 90 million cubic meters of water annually to the Musina-Makhado Special Economic Zone (SEZ).
• Timeline: An 18-month preparation phase followed by about three years of construction, if an agreement is reached.

Official Commentary and Status

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South Africa’s Water Department confirmed the two countries are discussing a joint study to assess the feasibility of the project as a long-term water solution, the report said, citing spokesperson Wisane Mavasa. However, Obert Jiri, Zimbabwe’s Agriculture Ministry secretary, told Bloomberg there is no timeline for the project to begin.

The Musina-Makhado SEZ, which is set to host metals processing and manufacturing facilities, declined to comment on the matter, according to the report. The discussions underscore the urgency for South Africa to secure water resources amid chronic shortages, rising industrial demand, and climate-related risks.

Context and Precedent

Large-scale, cross-border water projects are complex and can take years to move from planning to construction due to challenges in securing financing and agreeing on pricing and cost-sharing between governments.

If realized, the Thuli Moswa dam would be one of the largest bilateral water initiatives involving South Africa since the Lesotho Highlands Water Project. That long-standing project delivers approximately 780 million cubic meters of water to South Africa annually, generating significant royalty revenue for Lesotho.