South African millionaire hotspot in a state of emergency

Knysna, one of South Africa’s millionaire hotspots, is sinking deeper into crisis as the municipality has declared a state of emergency due to the collapse of its water supply.

Knysna is a small town in the Western Cape province of South Africa. It is situated along the Garden Route, between George on the N2 highway and Plettenberg Bay on the same road. 

Due to its picturesque landscape and positioning along the Garden Route, Knysna was among the towns that benefited from the semigration surge of wealthy South Africans and international buyers. 

Last year, Lew Geffen Sotheby’s International Realty highlighted that the median house price in Knysna increased by 47.6% in 2022 to R3.1 million, and again by 12.9% to R3.5 million.

With its position on the Garden Route, the town has quickly become a hotspot for the country’s high-net-worth individuals (HNWIs).

The African Wealth Report for 2024 by Henley & Partners noted that the Garden Route was home to an estimated 3,200 HNWIs. 

The area stretches from Mossel Bay to Storms River on South Africa’s South Coast, with notable towns including Plettenberg Bay, Knysna and Wilderness.

However, once known for its lush forests and calm lagoon waters, the town is now grappling with mounting service delivery failures that have eroded its reputation and quality of life. 

Knysna is now dotted with piles of uncollected rubbish, as the local government is unable to keep basic services running. 

Another growing concern is the ongoing contamination of Knysna’s iconic lagoon, as raw sewage reportedly flowed directly into the water due to broken infrastructure and poor maintenance. 

This environmental hazard poses a serious risk to public health and has raised alarm among residents and environmental groups. 

Despite repeated calls for action, the Knysna Municipality has struggled to resolve the sewage issues, mainly because of a growing financial crisis.

The town’s finances are in such disarray that the Western Cape Government has intervened with serious measures. 

In 2024, the provincial government charged the Knysna Municipality with criminal negligence for failing to comply with binding directives issued by the provincial Department of Local Government. 

These directives were meant to address systemic failures in municipal governance and service delivery, but the lack of action forced the province’s hand.

Dion George, current environment minister and then DA Constituency Head for Knysna, said the province had “no choice” but to escalate the matter after the municipality failed to take corrective steps. 

“The collapse of service delivery in Knysna is a direct result of the municipality’s inability or unwillingness to manage its affairs,” George said. 

“People live with overflowing sewage, without a consistent water supply, and the streets are full of trash.” 

“That is unacceptable in any town, especially not one that relies on tourism and second-home owners to sustain its economy.”

State of Emergency 

The municipality’s deteriorating service delivery has now led to a full-blown water crisis. After months of dire shortages, the Knysna Municipality officially declared a local state of emergency on 14 May 2025. 

This decision was made during a special council meeting convened to address the crisis, and it signals just how grave the situation has become. 

In the declaration, the municipality confirmed that key infrastructure, such as the Charlesford and Homtini water pump stations, had experienced multiple failures, leaving large sections of the town without running water.

As part of the emergency declaration, the municipality has established a Joint Operations Centre (JOC) in collaboration with the Garden Route District Municipality and other role players. 

According to the municipality, this task force will work under the Disaster Management Act.

It will include officials from the Department of Water and Sanitation, provincial government departments, police services, and local NGOs. 

The goal is to coordinate an effective response to the crisis, ensure that critical services like hospitals and schools remain supplied, and restore access to water across all communities.

Despite these measures, the situation remains dire for many residents. Water trucks have been deployed to supply affected areas between 06h00 and 22h00, using a zoning system to rotate deliveries, but demand still outstrips supply. 

The South African National Parks (SANParks) also noted that it had to dispatch two fire trucks to assist with water supplies.

Though SANParks is not a formal member of the JOC established by the Knysna Municipality, the organisation has promised sustained collaboration with the local authorities to ensure poor communities are not overlooked.

Residents have been urged to use water sparingly, and in some areas, waiting in queues for water is becoming a daily routine. 

The municipality has also warned that further disruptions are likely if additional infrastructure fails.