The new funding will support a pipeline of projects focused on rehabilitating mining-impacted water catchments, expanding water reuse, and advancing technologies for complex water reclamation and waste beneficiation.
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A major investment into South Africa’s water sector is set to accelerate efforts to tackle water insecurity and environmental degradation as Nafasi Water Technologies has secured funding from the Norwegian Fund For Developing Countries (Norfund), alongside a follow-on investment from E Squared Investments.
The deal, announced on Monday, will enable Nafasi to expand its footprint across Southern Africa, scaling its waste-to-value manufacturing capabilities and project-financed water infrastructure model.
The combined investment comes at a critical time for the region, where water infrastructure backlogs, pollution, and climate pressures are increasingly threatening water security. Africa’s water sector has historically been underfunded, resulting in aging systems and limited capacity to meet growing demand.
Nafasi said that its integrated approach — developing, financing, building and operating water treatment facilities — positions it as a key player in addressing these challenges. The company serves both mining and public sector clients and has been involved in large-scale projects such as the Erongo Desalination Project in Namibia.
The new funding will support a pipeline of projects focused on rehabilitating mining-impacted water catchments, expanding water reuse, and advancing technologies for complex water reclamation and waste beneficiation.
These initiatives aim not only to improve water security but also to reduce environmental damage caused by industrial activity.
Nafasi Water CEO, Suzie Nkambule, said the investment would allow the company to scale solutions that address both infrastructure gaps and environmental risks.
“The extent of the backlog in water infrastructure investment, coupled with deteriorating catchment resilience – due to climate and pollution factors – has accelerated water insecurity for many communities,” Nkambule said.
“We need the appropriate technologies, bankable projects, and skills at the local level. We have successfully deployed project-financed solutions for long-running, mining-impacted water rehabilitation projects.”
She added that Nafasi is increasingly active in public-private partnerships, particularly in wastewater treatment and reuse, as governments and private players seek collaborative solutions to the crisis.
A key differentiator in Nafasi’s model is its ability to extract valuable chemicals from sludge and effluent generated during water treatment processes. This creates a circular economy model that turns waste into commercially viable by-products, helping to offset costs while improving sustainability.
“We intend to continue developing technologies that lower the cost of proactive treatment and reuse, in order to stop uncontrolled decant at its source,” Nkambule said.
The investment is also expected to drive job creation, particularly in regions such as Mpumalanga, where economic diversification is becoming urgent amid the gradual decline of coal-fired power generation. By building and operating advanced treatment facilities, Nafasi aims to create high-value technical and engineering roles while strengthening local expertise.
Carl Johan Wahlund, senior vice president for green infrastructure at Norfund, said the partnership aligns with Norfund’s mandate to support sustainable development through commercially viable investments.
“By preventing polluted water from entering rivers and communities, Nafasi is addressing one of South Africa’s most pressing environmental challenges while creating jobs,” Wahlund said. “We are pleased to partner with a strong local team that combines technical capability with a clear long-term vision.”
The company has already begun expanding its engineering and project delivery capacity as it prepares for a more capital-intensive growth phase.
The partnership between Norfund and E Squared signals growing investor confidence in scalable, impact-driven infrastructure solutions across Africa. It also highlights the increasing role of blended finance and public-private collaboration in addressing systemic challenges such as water scarcity.
Gladwyn Leeuw, CEO of E Squared Investments, emphasized that water security remains one of Southern Africa’s most urgent challenges, requiring innovation and strong partnerships.
“As an existing shareholder in Nafasi, we have seen first-hand the strength of the company’s technical capabilities and its commitment to tackling complex water challenges, including acid mine drainage and wastewater reuse,” he said.
“Our follow-on investment reflects our confidence in the management team and in Nafasi’s ability to deliver complex infrastructure projects that strengthen water resilience in the region.”
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