GWP’s Simalabwi on investing in sustainable water solutions in Africa

African countries are grappling with a severe water crisis that is impacting livelihoods, agriculture, and the environment, leading to local conflicts and migration. In a recent interview with CNBC Africa, Alex Simalabwi, CEO of the Global Water Partnership for Africa, highlighted the critical state of water investments across the region. The inadequate investments in water infrastructure and systems have led to a significant gap in funding, with an estimated additional 30 billion dollars annually required by 2030 to address the water security and sanitation needs on the continent. Currently, the sector faces an investment shortfall of 30 billion dollars, despite existing investments ranging between 10 and 19 billion dollars annually. This deficiency underscores the urgent need for both local and global stakeholders to ramp up efforts in investing in sustainable water solutions. Simalabwi pointed out several challenges hindering investment in the water sector, including inefficiencies in resource utilization, lack of coordination, and governance issues. He emphasized the importance of maximizing existing resources, improving efficiency, and enhancing coordination among stakeholders to leverage available funds effectively. The High-Level Panel on Water Investments for Africa, launched by the African Union, has proposed three key pathways to mobilize the necessary investments. These pathways include optimizing current resources, scaling up continental finance, and attracting climate finance and other international funding to bridge the investment gap. However, a significant challenge remains in identifying viable projects with a clear return on investment to attract funding. The lack of adequate feasibility studies and project pipelines hinders investment opportunities and deters potential investors from engaging in the water sector. Moreover, weak tariffs, legislation, and regulatory frameworks further complicate investment decisions, making it challenging for private and public partners to commit to water infrastructure projects. Addressing these multifaceted issues requires a collaborative effort between development finance institutions, governments, and the private sector to align investment priorities, reduce risks, and create a conducive environment for sustainable water investments. The urgency of the water crisis in Africa necessitates immediate action and decisive measures to secure the necessary funding and implement sustainable solutions that will address the continent's growing water challenges.