South Africa, Zimbabwe in talks over $500 million dam as neighbours deepen water ties

South Africa and Zimbabwe are in talks over a proposed $500 million dam project, Bloomberg reported on Monday⁠, as the neighbours look for longer-term ways to share water across their border.

• South Africa and Zimbabwe are discussing a proposed $500 million dam project, Bloomberg reports.
• The neighbours already have an agreement to transfer water from Zimbabwe to South Africa’s border town of Musina.
• South Africa has also identified water supply for the planned Musina-Makhado industrial zone as a priority.
• The reported dam remains a proposal; financing and construction details need confirmation.

The discussions would build on an existing agreement to supply water from Zimbabwe to Musina, a South African border town in Limpopo province. South Africa has also identified water supply for the planned Musina-Makhado Special Economic Zone as part of its cooperation with Zimbabwe.

In 2024, South Africa’s cabinet announced an agreement to transfer 41 megalitres of water a day from Zimbabwe’s Beitbridge Water Treatment Works to Musina.

The arrangement was described as a short-term response to Musina’s water shortages and included plans for a 20-kilometre pipeline and pump station.

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South Africa’s Department of Water and Sanitation subsequently said the agreement with Zimbabwe would help supply Musina and the Musina-Makhado industrial zone. It also said new dams were being explored for the area.

That makes the proposed dam part of a wider question for both countries, how to secure water for households and planned industry as demand grows near the border.

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The $500 million project remains at the talks stage. The available official records establish the existing water agreement and earlier exploration of new dams, they do not confirm that financing, a construction contract or a start date has been agreed for the project.