Mpact enters water tank market as companies and households mitigate against drought, water shedding, and deteriorating infrastructure
Equity investment to accelerate Africa Tanks’ growth and entry into Eastern and Western Cape
Mpact, the largest paper and plastics packaging and recycling business in Southern Africa has acquired a strategic equity shareholding in Africa Tanks, one of South Africa’s leading water tank manufacturers.
The investment will provide Africa Tanks with the capital required to achieve economies of scale and accelerate its growth into the Eastern and Western Cape, thus becoming a national supplier.
Announcing the investment, Bruce Strong, CEO of Mpact, stated, “We aim to invest in growth markets that meet vital needs. South Africa is a very dry country with inadequate water infrastructure. People in many cities, towns, and regions face ongoing water supply challenges. Just as loadshedding drove the rapid adoption of electricity self-generation, we foresee a large and rapidly growing market for high-quality water tanks as households and institutions invest in water security to ensure continuity of supply. We are excited to be investing in Africa Tanks, which utilizes state of the art extrusion blow moulding technology to efficiently manufacture tanks of market leading quality and design”.
Craig Forbes, Director of Africa Tanks said, “Water supply is increasingly uncertain due to a combination of factors – deteriorating infrastructure, environmental degradation, persistent droughts and disparities in water and sanitation access. Given these dire circumstances, the need for reliable water storage that adheres to strict safety and hygiene standards is paramount. This is where Africa Tanks steps in, transforming lives and livelihoods with a product that combines quality and affordability.
We are delighted to have Mpact as an equity partner in Africa Tanks as it gives us the necessary capital to expand the business as well as the opportunity to leverage Mpact’s technology, expertise and national footprint as a leading plastic container supplier. With Mpact as a shareholder, Africa Tanks will continue to grow from strength to strength, addressing the urgent need for safe and reliable water storage solutions across Southern Africa.”
Africa Tanks is the only water tank manufacturer in South Africa that manufactures tanks by way of three layer ‘Blow Molding’ technology, which is both a cost-efficient and superior strength technology compared to the traditional ‘Roto Molding’ technology that other water tank producers utilize. The market for high quality water tanks in South Africa is large and growing. Africa Tanks is unique in that the tanks are produced with an innovative 3-layer design that means they are the strongest tanks and are sold with a 10 year warranty.
South Africa is a water scarce country with an average rainfall of 465mm. Albeit many households have access to piped water inside or outside their homes, the percentage of households that experienced water interruptions lasting more than two days at a time or 15 days in total over the past year, increased from 24,3% in 2012 to 35,8% in 2023. There are also many households in areas without access to piped water supply and who are reliant on periodic deliveries of water via tankers.
In recent years, there have been increasing water shortages linked to the power crisis or adverse weather events, but also as the Green and Blue Drop reports show, a decline in water quality due to contamination by sewage and bacteria in some parts of the country, leading to waterborne diseases.
According to Mpact’s Strong, “Access to clean and reliable water supply is a basic human right as well as a necessary business requirement. Mpact’s vision is to build a sustainable business which also contributes to society through innovation and investments in businesses that respond to society’s needs. Our investment in Africa Tanks is one such example and aligns with our strategy to pivot towards a circular economy while investing in areas where significant opportunities for growth and innovation exist.”
According to Stats SA, the South African population grew by 19.8 % between 2011 and 2022 – from 51,7 million persons in 2011 to 62 million persons in 2022 – the largest percentage change in population size since 1996.
“The broader infrastructure and related water supply challenges are likely to persist for several years to come and demand for water storage and rainwater harvesting is expected to continue growing ,” Strong concluded.
For media enquiries contact:
Penny Ntuli
Group Communications Manager
Tel: +27 11 994 5547
Cell: +27 63 684 5846
PNtuli@Mpact.co.za
Lwazi Moletsane
Director: Brunswick Group
Cell: +27 64 867 3435
lmoletsane@brunswick.co.za
Editor’s notes
Mpact
Mpact is the largest paper and plastics packaging and recycling business in southern Africa, employing 5,095 people (2022: 5,156 people), and generating revenue of R14.0bn in the 2023 financial year.
Their business model is uniquely focused on closing the loop in plastic and paper packaging through recycling and beneficiation of recyclables.
Mpact also continues to be South Africa’s largest collector of recyclable packaging, collecting approximately 650 million kilograms of paper and plastic recyclables per year from pre- and post-consumer sources. By closing the loop on paper and plastic, the company reduces the amount of material going to landfill, promotes local beneficiation of raw materials and supports the development of more than 50 small businesses.
Africa Tanks
Africa Tanks was established in 2017 in Cullinan, Gauteng. The business is controlled by Forbes Capital and makes vertical water tanks for the residential, commercial and agriculture markets. Their vision is to provide customers with the strongest, longest lasting tank that maintains the highest standard of hygiene, providing you with clean and safe water.
Using virgin plastic with a food grade inner layer, an antibacterial middle layer and an outer UV resistant layer, we make a 3-layered high density water tank, making it the strongest, longest lasting, affordable water tank in the market.