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Water Crisis, Is the World Ready Yet? Investors Are.

Water Crisis, Is the World Ready Yet? Investors Are. 

Water, a resource that man hardly appreciates in value until its scarcity hits. Isn’t this the literal sense of “you never miss the waters till the well runs dry”? Cape Town, South Africa was set to experience a water day zero in July 2018. This was the first city in the world to experience an indefinite water supply shutdown threat.

Conscious of the looming disaster, the city’s residents cut on their water consumption. This saw recalling of the intended day zero. People cut down their water use, which saw day zero called off.

Other cities in the world that face water supply threats and include California, Jakarta, Beijing, Sao Paulo. There is huge water consumption supplied by systems meant to serve lesser populations. Manufacturing industries and farmlands on irrigation are more examples of heightened water use. These include farming in desert areas, irrigating animal feeds such as alfalfa, and production of soda, beer brands, cotton, and coffee amongst myriad others.

Water is increasingly becoming a scarce commodity that hedge funds are buying for profit.

Much needs to be done as aquifers that boreholes tap from are on gradual level declines as decades go by. Desalinization of salty water has proven quite expensive for the output it gives. Water conservatives opine that attaching value to water through effecting a price signal will enhance the economics of water usage. Leaky pipes will be fixed and responsible use of water will significantly rise.

Notably, valuing an invaluable resource will draw more sanity into water usage. However, authorities should be able to balance the attachment to price with universal access. Cities like Philadelphia, have run tests of pricing water according to a household’s income and yet to make solid submissions. How feasible is the Philadelphia approach, does it sound viable in a world that harbors different socialist and capitalist sentiments?

At the center of all this, is that water is slowly becoming a rare resource and a keen group of investors are now invested and will most likely benefit from it as a commodity both in the present and future.

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