The funding comes alongside a follow-on investment from existing shareholder E Squared Investments and is expected to accelerate Nafasi’s growth in water treatment and waste recovery solutions.

The combined capital injection will be used to build out a platform focused on large-scale water infrastructure projects.

Priority areas include restoring polluted water catchments in mining regions, expanding municipal water reuse systems, and advancing technologies that treat complex wastewater streams.

The investment reflects rising concern over water shortages in South Africa and the wider region.

The country faces a significant infrastructure gap, with long-term projections showing that hundreds of billions of rand will be required annually to secure reliable water supply and sanitation services.

Nafasi Water operates as a developer and contractor, delivering end-to-end water treatment solutions for both industrial clients and the public sector.

Its work spans project financing, construction, and long-term operations. The company has been involved in major projects such as the Erongo desalination plant in Namibia, which supplies water to mining operations and surrounding communities.

Chief executive Suzie Nkambule said the funding comes at a time when water systems are under increasing strain.

“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. We need the appropriate technologies, bankable projects, and skills at the local level,” she said.

Nkambule added that Nafasi has already implemented project-financed solutions for long-term mine water rehabilitation and is now expanding into public-private partnerships.

For Norfund, the deal aligns with its mandate to support green infrastructure in developing markets, particularly in sectors such as water and waste management that are critical to economic development and environmental protection.

Carl Johan Wahlund, Norfund’s senior vice president for green infrastructure, said the investment addresses both environmental and economic priorities.

“By preventing polluted water from entering rivers and communities, Nafasi is addressing one of South Africa’s most pressing environmental challenges while creating jobs in building commercially viable solutions for the future. We are pleased to partner with a strong local team that combines technical capability with a clear long-term vision,” he said.

E Squared Investments, which has backed Nafasi previously, said its additional funding reflects confidence in the company’s ability to deliver complex infrastructure projects.

CEO Gladwyn Leeuw emphasized the urgency of the water challenge in the region. “Water security is one of the defining challenges for Southern Africa. Addressing it will require innovative technologies, strong local expertise, and catalytic partnerships between the public and private sectors,” he said.

He added that Nafasi has demonstrated its capability in tackling difficult water issues such as acid mine drainage and wastewater reuse.

The new funding is expected to support the company’s expansion of waste-to-value solutions, where by-products from water treatment are converted into usable materials, contributing to a circular economy approach.

It will also enable Nafasi to scale its project finance model, which has become increasingly important in delivering large infrastructure projects in markets where public funding alone is insufficient.