According to the managing director of Silulumanzi "the South African water market is still in its infancy and municipalities are unsure of how to engage the private sector.
Under a groundbreaking 30-year concession contract, SWC assumed responsibility for providing water and sanitation services to what was then known as the Borough of Dolphin Coast, a locality in the iLembe District Municipality with a permanent population estimated at 34,000 located about 50 kilometers north of Durban.
The privatisation was welcomed and supported by the city council and senior government officials, including President Thabo Mbeki who visited the area to sanction the process.
After initial difficulties the contract was renegotiated in 2001, including a substantial reduction in investment requirements and the provision of free basic water.
[4] According to the private concessionnaire, in the first two years of the concession thousands of unregistered connections were found and many household and mains leaks repaired.
Facilitators have worked in the villages and townships educating, discussing and encouraging the regular payment of water and sewage bills.
Also local offices have been established throughout the concession area to provide easy access for customers to pay their bills, raise queries, deal with complaints and report leaks.