Economics of Water addresses the issues affecting the ongoing volatility of water supply in Makana, by looking the interaction between residents, business owners and the municipality. Despite large amounts of funds being allocated in municipal budgets, Makana still deals with water crises almost annually.
The ongoing water crisis has a direct negative impact on the economy, which is kept afloat by small businesses, tourism and the influx of students from the local schools and Rhodes University. An even greater issue is the unequal access to water, as a result of the social structure of the past. When Makana experiences water crises, Grahamstown East is most severely affected. Despite investment and budget allocations dedicated to improving the situation, Grahamstown’s infrastructure, such as dams and pipelines, need to be replaced and maintained.
Ongoing water shortages and outages threaten tourism and business. On June 26 2016, during fest, a pump in Howieson’s Poort pump station, which provides water to Grahamstown West, malfunctioned. The problem could have been avoided if the employee had been stayed on duty and reported the malfunction early. Reparations had been made and tankers of water had been provided, allowing he festival to continue. However, areas in Grahamstown East were still without water.