New York — African leaders have pledged to mobilise US$30bn per year by 2030 to achieve water security and sustainable sanitation on the continent through institutional private-public partnerships, sector reform, and higher national budget allocations.
This is the key message from the launch of Mind the Gap – Invest in Water, a campaign championed by the African Union Commission and supported by the International High-Level Panel on Water Investments for Africa, as part of the Continental Africa Water Investment Programme (AIP).
Mind the Gap – Invest in Water was launched on 19 September on the side-lines of the 78th United Nations General Assembly and 2023 Sustainable Development Goal (SDG) Summit in New York.
The 2023 SDG Summit takes place at the midpoint to 2030 SDG deadline, and includes in its Political Declaration a commitment to address water scarcity and stress. Approximately US$50 billion annually is required to achieve water security in Africa by 2030. Currently, US$10-US$19 billion is invested each year.
New sources of funding are urgently needed to accelerate implementation of the AIP to achieve water related SDGs on the continent.
Mind the Gap – Invest in Water will raise awareness, influence change, and ultimately – prompt mobilisation of investments across continental institutions and organisations.
African countries are currently losing up to US$200 billion/year due to insufficient investment, coupled with the impacts of climate change and inefficiencies.
Over 300 million Africans do not have access to clean drinking water and over 700 million live
without access to good sanitation. Without action, climate change will make water shortages worse and lead to more food insecurity, disease burden, human displacement, conflict.
Mind the Gap – Invest in Water will address systemic challenges, or gaps, that deter investors including:
1. Governance Gap: the need for robust national water policies, effective regulations, and strategies that are multi-sectoral, comprehensive, and gender transformative.
2. Finance Gap: the need for credit worthy water utilities and service providers; return on investment; risk mitigation strategies and public-private investment modalities.
3. Capacity: the need for improved implementation capacity and quality of a portfolio of bankable (and less bankable) projects through increased partnerships with regional and national finance institutions
The campaign will speak to the nine potential sources of finance for water investment in Africa, which were outlined by the High-Level Panel’s Pyramid of Water Transformation, which also shows the total estimated value of funding that is available; and the potential funding that could be mobilized or leveraged for Africa by 2030.
1. Sector governance: Efficiency gains and cost savings
2. Valuing water-related risks and internalising the environmental costs
3. Institutional investors
4. Pollution and mineral resource taxes
5. African Government Budgets
6. National banks, microfinance institutions, local governments
7. Multilateral climate funds
8. Multilateral and Development Finance Institutions
9. Bilateral ODA and philanthropy
The High-Level Panel is a registered United Nations 2023 Water Action Agenda
commitment (view the commitment here), and will mobilise resources to implement
the water actions in the 2030 Agenda for Sustainable Development.
Quotes from the International High-Level Panel on Water Investments
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