This is the conclusion of the “Accelerating Preparation and Financing of Transboundary Water Projects: Bridging Funding and Capacity Gaps" session on November 25 at the 8th PIDA Week 2025, in Addis Ababa.
The session, co-convened by AUDA-NEPAD, and the Global Water Partnership Southern Africa (GWPSA), culminated in a call for governments, private sector players, and development partners to bridge funding and capacity gaps to unlock the full potential of Africa’s water resources – including taking advantage of innovative approaches to water resources management.
“Africa’s aspirations for growth and transformation are juxtaposed with the influence of water access and use on overall economic output. Capacity and funding constraints in the water sector pose grave implications for the realization of Africa’s development agenda,” said Dr. Rashid Mbaziira, Executive Secretary of the African Ministers Council on Water (AMCOW) in a keynote address.
Dr. Mbaziira identified the preparation of bankable projects, weak institutional capacities, and inadequate private-sector investment as the key obstacles to the further development of Africa's transboundary water systems.
“We need to promote a new narrative on water that recognizes the full potential of water in the economy to further Africa’s future development needs.”
Dr. Mbaziira emphasized the need for stronger business cases for water investments and elevating water's profile in national and regional planning to mitigate the economic vulnerability to climate change.
Regional Initiatives in Action
A cross-section of participants at the “Accelerating Preparation and Financing of Transboundary Water Projects: Bridging Funding and Capacity Gaps" session on November 25 at the 8th PIDA Week 2024.”
Dr. Patrice Kabeya, SADC Senior Programme Officer for Water, shared insights into ongoing initiatives to support transboundary water projects in the Southern African region, highlighting how the SADC Water Fund and Infrastructure Projects such as the Lomahasha-Namaacha Cross-Border Water Supply Project and the Kazungula Water Supply Project, help in addressing climate-induced water scarcity.
“These initiatives not only enhance water security but also demonstrate the critical role of regional cooperation and integration in building climate resilience,” said Dr. Kabeya.
As part of the success stories on water infrastructure unfolding on the continent, Dr Isaac Alukwe, Nile Equatorial Lakes Subsidiary Action Program (NELSAP) Regional Coordinator, outlined how the Angololo project in the Sio Malaba Malakisi basin has managed to mobilise early project preparation funding from the multi-donor NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) hosted by the African Development Bank (AfDB), thanks to the enabling project environment that included endorsement by the Nile Council of Ministers and a bilateral agreement between Uganda and Kenya.
This Multipurpose Dam development includes dam infrastructure, irrigation, water supply, catchment restoration, flood management, fishery and hydropower components, and has an economic internal rate of return estimated at 14%. The project is now in the financial structuring stage.
Claudia Boldrini, Team Leader for Green Transition, Regional and Multi- County Programmes for Africa at the European Commission, outlined the EU’s contributions through the Team Europe Initiative on Transboundary Water Management in Africa (TEI-TWM) which was launched at the UN Water Conference in March 2023. The initiative mobilizes over €400 million to enhance policies, promote cooperation, and stimulate investments in transboundary water management.
“The TEI acts at continental, regional, basin, and country levels, delivering change through objectives like improving integrated water resource management and increasing investments with transboundary relevance,” she noted.
Ms. Boldrini also highlighted the Blue Africa Programme, which strengthens African water governance and supports innovative funding mechanisms, including climate adaptation and nature-based solutions.
She advised that “the approach to water cooperation must be holistic, linking climate and water policies, and looking at the nexus Water-Energy-Food-Environment.
Mobilizing Innovative Financing Mechanisms
The session explored strategies to address institutional and resource barriers, with case studies showcasing lessons learned and innovative practices. Central themes included strengthening institutional capacities, mobilizing resources, and fostering multi-stakeholder collaborations to accelerate sustainable water development across the continent.
Dr. Loreen Katiyo, Transboundary Water Governance and Environmental Specialist at GWPSA, emphasized the importance of innovative financing approaches to complement traditional funding sources. Drawing on findings of Africa’s Rising Investment Tide report published in 2023 by the African Union-AIP International High-Level Panel on Water Investments for Africa, Dr. Katiyo noted that “Official Development Assistance contributes only about $0.5 billion annually. Africa must shift focus to public-private partnerships, blended finance instruments, climate finance, and green bonds to bridge the financing gap.”
Dr. Katiyo highlighted GWPSA’s role in facilitating multi-stakeholder collaboration and technical support for water investments, underlining the significance of partnerships in advancing Africa’s water security agenda.
The World Bank’s Water Practice Manager for West Africa, Ms. Fatouma Ibrahima, also emphasized the need to address the transversal issues of capacity and financing in an integrated way, with clear roadmaps of developing priorities and looking for opportunities to break the vicious cycle of “build, dilapidate and rebuild”. “The World Bank has moved to longer term, multi-phase, multi-country project interventions which are more complex but necessary to avoid fragmentation of our interventions. In terms of private participation in infrastructure, the reality is that this is currently less than 10%, which presents an opportunity for technical partners and donors to come together and establish platforms where we bring together all potential resources that can help us bring funding and financing to the water sector.”
Mr. Bakary Traore, Deputy Head of the Africa Desk, OECD Development Centre, said that the OECD is currently focused on generating statistics to change the perceptions of risk and low return on investment besetting the Water Sector. He cited the huge opportunities for returns on potential private sector investments on productive use of water in the agricultural and industrial sectors, in contexts where the right incentives and regulatory framework are put in place.