Desalination could be PSG’s new sweet spot

PSG Group — the R60bn investment group — is backing a small Strand-based water desalination specialist that it hopes to turn into a multibillion-rand business. With the water shortage in Cape Town reaching critical level, Business Day learnt on Friday that PSG Alpha power management subsidiary Energy Partners had secured an option to take a 50% share in GrahamTek for an undisclosed sum. PSG has shown a knack for backing fledgling businesses such as Capitec Bank, and private education supplier Curro Holdings and turning them into huge successes. It reckons water desalination could be another sweet spot. In August. the City of Cape Town issued its first tender to produce an additional 500-million litres of water from desalination plants. It is expected that the first desalination plant should be in operation by the end of March 2018. GrahamTek CEO Julius Steyn said the company submitted four tenders to the city council for erecting water desalination plants. Dams providing water for C...

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