Gauteng’s Water Security at Stake as Lesotho Demands Urgent Review of 1986 Highlands Water Accord

South Africa faces a potential water price hike as Lesotho calls for a review of the 1986 Highlands Water Accord. Learn how this impacts Gauteng's water security.

By: AXL Media

Published: Apr 2, 2026, 7:09 AM EDT

Source: The information in this article was sourced from EWN

A Decades-Old Treaty Under Modern Pressure

South Africa is facing a critical diplomatic and economic challenge as the mountain kingdom of Lesotho moves to renegotiate the terms of the Lesotho Highlands Water Project (LHWP). Signed in 1986, the original accord governs the transfer of approximately 780 million cubic liters of water annually to South Africa. However, the Lesotho government now contends that the agreement is outdated and fails to address current developmental needs. Africa correspondent Crystal Orderson notes that while the original deal was set to expire in 2044, Lesotho is pushing for an immediate review to secure a more equitable share of the revenue generated by its most valuable natural resource.

The Gauteng Connection: A Non-Negotiable Resource

The stakes for South Africa could not be higher. The LHWP currently provides 60% of the water used in Gauteng, the country’s industrial and financial heartland. Analysts emphasize that Gauteng simply cannot function without this supply, as local dam levels continue to fluctuate amidst regional climate concerns. The deal currently costs South Africa approximately $300 million annually—a figure that represents a staggering 10% of Lesotho's total GDP. By calling for a rethink, Lesotho is effectively leveraging its position as the region's "water tower" to bolster its national budget.

Phase II Delays and Infrastructure Challenges

While the existing infrastructure is vital, the future of the project rests on Phase II of the LHWP. This expansion is expected to eventually boost the water supply to over 100 billion cubic liters, while simultaneously increasing Lesotho’s domestic hydropower capabilities. However, the project has been marred by significant delays and rising construction costs. These setbacks have left some local communities in both countries struggling with water access, adding a humanitarian dimension to the high-level financial negotiations.