Mitrelli - Tapping Into Opportunity: Why Africa’s $30 Billion Water Crisis Demands Strategic Investments

Africa’s population is growing at an unprecedented pace and is projected to reach 2.5 billion by 2050. Yet, much of the continent still lacks the water infrastructure needed to meet the demands of this rapid growth. 

The scarcity of clean water—one of the most basic human rights—and access to it remains a growing challenge for Africa. 

A $30 billion annual water investment gap, combined with rapid urbanization across sub-Saharan Africa (SSA), highlights the region’s urgent need to address the lack of or even overhaul of its underperforming water infrastructure. 

“Africa faces two big challenges: water demand is rising fast, while many systems are ageing and poorly-maintained. In some countries, up to half of the water is lost before it even reaches consumers,” says Tomás Frade, Head of Water & Food Security at Mitrelli, a Swiss-based organization, to FORBES AFRICA. 

This call was echoed at the inaugural AU-AIP Water Investment Summit in Cape Town in August that saw the launch of the Global Outlook Council on Water Investments as a flagship G20 Presidential Legacy Initiative under South Africa’s G20 Presidency.  

At the launch, South African President Cyril Ramaphosa declared: “Water investment must no longer be an afterthought at climate and finance discussions… It must be financed, tracked, and championed.”  

The President’s plea comes at a time when basic utilities and reliable water facilities still remain scarce and inaccessible across the region.  

According to a UNICEF-World Health Organization (WHO) report, around 387 million people in SSA lacked basic drinking water services in 2020—an increase of 37 million rise since 2000. Meanwhile, approximately 74% of the population had either limited or no access to basic hygiene services, showing an absymal 1% improvement over the last decade. 

As Africa’s population booms—projected by the OECD to grow by nearly a billion people by 2050—water demand is expected to rise in parallel.  

“The solution is not just to build more infrastructure but to build it better-designed for long-term use, with proper maintenance, monitoring, and efficient management,” Frade adds. 

Establishing a vast network of efficient urban and rural water facilities is now a necessity, otherwise demand risks outgrowing capacity. The OECD report reveals that 80% of the region’s growth will occur in Africa’s urban cities.   

Failing to act now risks allowing demand to outpace supply, creating humanitarian, economic, and environmental consequences. In many parts of the continent, water infrastructure is already in crisis. 

A 2022 report by Nigeria’s Federal Ministry of Water Resources revealed that much of its national water infrastructure is over 50 years old, with leakage rates nearing 60%—a dangerous reality in Africa’s most populous nation, home to over 230 million people. 

Meanwhile, Ethiopia, SSA’s second-most populous country, has one of the region’s widest accessibility divides. While 75% of urban residents have access to piped water, a staggering 95% of the rural population lacks such access, according to World Economic Forum data. 

Yet, there is momentum for change. 

Angola’s 2025 Vision strategy aims to provide universal urban water access by the end of this year. Only 34% of the country’s rural areas reportedly currently have access to clean drinking water. Leading this effort is PROÁGUA, Angola’s national infrastructure program developed in collaboration with Swiss-based Mitrelli. 

“Our focus is on rehabilitating and expanding networks, reducing losses, improving water quality, and building local skills. Importantly, investing in water infrastructure in rural and remote areas also reduces the pressure on cities, easing migration and helping balanced development,” Frade explains. 

He also emphasizes the untapped potential of wastewater treatment and reuse, particularly for agriculture. “By treating wastewater properly and reusing it for agriculture, competition between farming and drinking water can be reduced,” he adds. 

A similar mission is unfolding in Côte d’Ivoire, where Deutsche Bank is supporting the ‘Eau pour Tous’ (Water for All) program, inaugurated in 2017.  

“We believe that infrastructure development in Africa, particularly improving access to clean water, is a cornerstone of sustainable growth… This initiative [Water for All] aims to enhance the availability of potable water in rural communities, thereby significantly improving the overall health of the population in these areas,” says Ndeye Rivet, Deutsche Bank’s Vice President of Structured Trade & Export Finance in the Middle East and Africa, to FORBES AFRICA. 

The financial backing is expected to aid the construction of 95 hydraulic systems, connecting more rural communities with clean water and boosting the West African nation’s chances of delivering on its promise to provide safe drinking water to 97% of the population by the end of the year. 

“This project exemplifies how effective collaboration between governments, banks, and export credit agencies can mobilize long-term financing solutions that deliver lasting benefits to the population,” Rivet concludes.