Africa’s water economy an investment opportunity
Water is one of Africa’s most overlooked investment opportunities.
By Leon Louw founder of WhyAfrica and Endorphin Expeditions
According to the World Bank close to 95% of Africa’s smallholder farmers rely on rainwater to survive.
Small-scale farming remains the backbone of African economies.
The Food and Agriculture Organization (FAO) estimates that more than 60% of Africa’s workforce is engaged in smallholder farming, producing about 70% of the continent’s food supply.
Irrigation could generate more jobs
The World Bank states in a recent research article that the expansion of irrigation systems in Africa could “generate more than 200 million jobs across agriculture and the food value chain, transforming rural economies and unlocking long-term growth.”
However, in Africa access to reliable and clean water, modern irrigation systems, financing and markets remains severely constrained.
This is where investment and innovative partnerships can catalyse exponential change.
For example, a USD1.6-billion multi-country programme in East and southern Africa, backed the African Union, aims to deliver clean water to about 30 million people across 12 countries by 2032.
PPPs work in Africa
Public-Private Partnerships in West and Central Africa, aligned with the World Bank’s Africa Water Investment Program, are targeting improved water security in a region plagued by severe water challenges.
The World Bank’s Africa Water Investment Program has identified water infrastructure as one of the continents highest-impact development multipliers.
Efficient Irrigation translates into higher yields, enables multiple growing seasons, supports climate resilience, and strengthens entire food value chains
That means from processing and storage to logistics, export and retail.
The International Fund for Agricultural Development (IFAD) notes that access to irrigation can double or triple farm productivity, while significantly raising household incomes and nutritional outcomes.
Empowering small-scale farmers
Moreover, empowering small-scale farmers drives inclusive growth.
Every dollar invested in agriculture-driven development delivers two to four times the impact on poverty reduction compared to other sectors, according to the World Bank.
Africa’s water economy is not a risk it is an opportunity.
For those prepared to engage early, the social, economic and financial rewards could be profound.
Image: According to the World Bank close to 95% of Africa’s smallholder farmers rely on rainwater to survive. The image below was taken in rural Malawi during a recent WhyAfrica Road Trip through Africa.
WhyAfrica specialises in the sustainable use and responsible development of Africa’s natural resources which includes water, soil, wind, sunlight, hydrocarbons, fossil fuels, mineral resources, critical minerals, biodiversity and wildlife.
Africa’s water economy an investment opportunity
