Africa water projects attract billions amid reform push

African leaders and development finance institutions have reaffirmed their commitment to transforming water investment pledges into viable projects. This follows significant progress reported by the Africa Investment Programme (AIP) since a water summit held in Cape Town last year.

The commitment was made at a high-level continental gathering in Addis Ababa, held alongside the 39th Ordinary Session of the African Union (AU) Assembly of Heads of State and Government. Alex Simalwambi, CEO of the Global Water Partnership Organisation, emphasized the focus on delivering tangible infrastructure outcomes rather than simply discussing challenges.

Cape Town Water Summit Projects

The Cape Town summit, convened under the AU’s auspices, showcased 80 investment-ready water projects from 38 African countries. These projects, with a combined portfolio value of approximately $32 billion, ranged in size from $800,000 to $1.5 billion. The projects addressed areas including water supply, sanitation, hydropower, irrigation, ecosystem management, and climate-resilient infrastructure. Participating countries included Burkina Faso, Chad, Côte d’Ivoire, Eswatini, Malawi, Morocco, Niger, Rwanda, South Africa, Uganda, Zimbabwe, Egypt, Ghana, Madagascar, Mali, and Mozambique.

Funding Commitments and Financial Institutions

Ministers presented projects directly to financial institutions in structured “deal rooms,” facilitating real-time engagement. Several projects secured funding commitments during the summit, including a Namibian project backed by the African Development Bank (AfDB). Over 180 private companies and financial institutions participated.

Major financial institutions highlighted substantial portfolios. The World Bank referenced approximately $6 billion across more than 30 projects, while the AfDB cited a $6 billion pipeline with plans for expansion. Standard Bank indicated approximately $3 billion in available funding, and the Development Bank of Southern Africa outlined a broader infrastructure pipeline of $18.2 billion. Climate-focused finance is also expanding, with the Green Climate Fund and the United Arab Emirates signaling multi-billion-dollar commitments toward climate-resilient water initiatives.

Domestic Reforms and Bottlenecks

Speakers emphasized that unlocking finance requires domestic reforms. Bottlenecks remain in governance, tariff reform, pricing structures, and public sector water management. Strong political leadership is considered essential to address these issues.

South Africa’s Water Crisis and Global Context

South Africa is currently experiencing an ongoing water crisis, prompting President Cyril Ramaphosa to announce the establishment of a National Water Crisis Committee. Dr Risimati Mathye, South Africa’s Director-General for Water and Sanitation, noted that a United Nations water conference had not been held since 1977, highlighting Africa’s lagging progress on access to safe water and sanitation in relation to the Sustainable Development Goals (SDGs) targeted for 2030.

Accountability and Future Initiatives

The AU Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment, Moses Vilakati, emphasized the need to translate commitments into financed projects and tangible outcomes. New tools announced include guidelines for developing national climate-resilient water investment programs and an AU-AIP Water Investment Scorecard to track progress.

South Africa’s Minister of Water and Sanitation, Pemmy Majodina, stated that the focus is now on accountability, ensuring that the estimated $10–12 billion in annual investment pledges materialize into real infrastructure. Africa is also preparing for a stronger global presence at the 2026 UN Water Conference in the UAE, with Senegal co-hosting and Ghana, Zambia, Egypt, and South Africa co-chairing key sessions.