Jul 1 2025 - Cape Town, South Africa

Nature at work: The Greater Cape Town Water Fund

Water Supply Partnerships Natural Resources

Contributing Entities

The Nature Conservancy

PepsiCo

This ecosystem restoration project promotes climate resilience and socioeconomic benefits.

On April 12, 2018, facing a dry climate, rapid urbanization, and relatively high water consumption, the city of Cape Town, South Africa, was nearly forced to shut off its taps’ water supply during one of the worst-ever drought-induced municipal crises known as Day Zero. The city averted the emergency when it significantly reduced its water demand and much-needed rain fell.  

Many factors led to Day Zero, but among them was the significant amount of water that invasive trees species like pine, eucalyptus, and Australian acacia were drawing from the ground in areas that supply the Cape Town region with water. The region was losing over 14 million gallons of water—equivalent to 22,000 Olympic swimming pools—annually. Water losses were projected to almost double to 26 million gallons per year in two decades if invasive plants weren’t removed from priority catchments, or natural drainage basins.

In response, The Nature Conservancy and PepsiCo worked together to establish the Greater Cape Town Water Fund (GCTWF), which integrates nature-based solutions, private-sector leadership, and science-driven restoration to address the invasive plant problem and return billions of gallons of water to the area.

Such water funds are public-private partnerships that use nature-based solutions to promote sustainable watershed management, according to The Nature Conservancy. The GCTWF removes invasive trees that require substantial amounts of water from remote, hard-to-access areas compared with native plants. This work improves water runoff, reduces wildfire risk, and helps support biodiversity. The restored catchments buffer against floods, droughts, and fires, building long-term ecosystem and climate resilience.

The GCTWF is an example of the collaborative action The Climate Pledge champions, connecting corporations with communities to encourage climate resilience and nature-positive investment. As cities and businesses face growing water risks, the GCTWF offers a proven, scalable model to adapt urban and agricultural water systems in the face of climate change.

Since 2019, the fund has helped clear 98,000 acres of invasive plants, unlocking more than nine billion gallons of water annually. It’s also created 1,400 green jobs, prioritizing women and young adults from underserved communities. The goal is for the GCTWF to clear 134,00 acres by December 2026 and to maintain the cleared areas.

The learn more about the Greater Cape Town Water Fund, visit The Nature Conservancy and PepsiCo.