Water Financing Trends

Financial commitments to the water and sanitation sector in Africa increased from $12.2bn in 2016 to $13.2bn in 2017. The main source of the increase was the return of Chinese financing – after making no commitments to the sector in 2015 and 2016, China committed $1.8bn in 2017. This accounted for 14% of total financing for the sector in 2017. 

Commitments from other financiers experienced marginal fluctuations. African state funding, at national and sub-national levels, fell slightly from $6.1bn in 2016 to $5.9bn in 2017. State financing accounted for 45% of total financing for the water sector.

ICA member commitments decreased slightly (by 1.2%), from $4.7bn in 2016 to $4.6bn in 2017. ICA members accounted for about 35% of total financing to the water sector.

Total water sector financing by source, 2013-2017

Total water financing 2017 graph

East Africa accounted for the largest share (31%) of new investment in the water & sanitation sector across Africa. East Africa displaced North Africa (20%), which was the most popular financing destination in both 2015 and 2016. Investments in the Republic of South Africa accounted for 18% of financing of Africa’s water sector, while Southern Africa and West Africa accounted for 12% each. Only 7% of new funding for water and sanitation was invested in Central Africa.

Total water sector financing by region, 2017

Water Regional Financing 2017 graph

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