African Development Bank on Continent's Water Future

Summary

Mtchera Chirwa from the African Development Bank discusses the progress and challenges in water investments across Africa. She highlights increased investments in areas like desalination and wastewater treatment but points to gaps due to project readiness and regulatory issues. The AfDB is investing in upstream preparation and advocates for using financial instruments like bonds and climate funds to boost the sector.

• Water investments in Africa have grown over the past decade in desalination, service delivery, and wastewater treatment.
• Challenges include lack of bankable projects and weak institutional/regulatory environments.
• The African Development Bank invests in upstream project preparation through the African Water Facility.
• Financial instruments such as water bonds and sustainable bonds are effective for sector financing.
• Climate funds are key enablers as water projects align with climate resilience.
• Blended financing combines concessional and commercial resources for sustainability.
• Access gaps remain with 400 million lacking clean water and 800 million lacking sanitation.
• Countries invest less than 1% of GDP in water, below transformative needs.