Water Financing Trends
The ICA’s flagship annual reports - Infrastructure Financing Trends in Africa – show that financial commitments to the development of the water sector in Africa have been on a declining trend since 2013, when the total value of commitments stood at US$11.2 bn. This fell to US$9.7bn in 2014 and to US$8.1bn in 2015.
90% of the 2015 commitments were from only two sources - African national governments (US$4.1bn, down from US$5.1bn in 2014) and ICA members (US$3.2bn, down from US$3.4bn in 2014). Investments from the Arab Coordination Group (ACG) fell from US$621m in 2014 to US$378m, while those from regional development banks also fell, from US$95m to US$48m. Private sector investment in 2015 stood at US114m, for a single project. No Chinese investments in the water sector were reported in 2015.
Figure 77: ICA member commitments to the water sector 2011-2015
The World Bank Group’s $1.5bn of commitments to the water and sanitation sector accounted for almost half of the total financing by ICA members in 2015. Significant commitments by other ICA members include AfDB ($518m), Germany ($379m), France ($282m), the European Investment Bank ($164m), the European Commission ($103m), Japan ($90m) and Canada ($86m).
As for the regional breakdown, of total commitments to the water and sanitation sector in 2015 ($8.1bn), North Africa received 26% while Southern Africa (including South Africa) and East Africa each received around 24%. West Africa received 17% of commitments to the sector in 2015 and Central Africa 8%.
Figure 80: Total water sector commitments by region, 2015