Water Investment Picture & Data
Water Investment Picture
The total value of financial commitments to African water infrastructure projects declined from $11.2bn in 2013 to $9.7bn in 2014. However, the financial close of a $114m desalination plant being developed by Spain’s Abengoa in Morocco contributed to an increase in identified private sector funding.
ICA member disbursements to the sector in 2014 were up on the previous year – to $2.6bn compared with $2.4bn — but commitments decreased from $5bn to $3.4bn over the same period. The trend set in 2013, when West African projects emerged as the prime beneficiaries of water sector funding commitments continued, with the region receiving $1.5bn of the 2014 total. This figure was on a par with the previous year; it was twice as much as pledges to the next most funded region, Central Africa.
The total value of commitments to North Africa almost halved to $557m, the lowest since 2009 (following years of sustained investment at around the $1bn mark). Financing of projects elsewhere also dropped considerably: commitments to Central Africa were down by 30% to $772m (although this is still above the pre-2013 figure) and East Africa fell by 54% to $375m. ICA member commitments to Southern Africa fell by almost two-thirds, from $621m in 2013 to $214m.
Multisector disbursements made by ICA members though more than quadrupled from $419m in 2013 to $1.8bn in 2014.
Given the cross-border nature of water resources, more investment is expected across the continent as PIDA and other water-specific regional programmes are accelerated in the coming years.
The ICA funded the African Infrastructure Country Diagnostic (AICD), a comprehensive World Bank study to assess the magnitude of Africa’s infrastructure needs. The 2009 AICD Flagship report Africa's Infrastructure: A Time for Transformation revealed many important challenges for African water infrastructure, including climate change and the implications of energy, food and financial crises. This Flagship study and all the knowledge tools associated with it provided the platform for the AIKP, (African Infrastructure Knowledge Programme) an African Development Bank managed initiative that aims to build on the work of the AICD by collecting relevant statistics about infrastructure in Africa.
Source: ICA. For more detailed information and the latest figures on water, consult the 2014 Annual Report, Infrastructure Financing Trends in Africa.
For more information about specific ICA Water Platform activities, please visit ICA News/Water.