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Diversifying sources of finance for water in Africa

Aude Farnault and Khalifa Sarr

No 248, OECD Environment Working Papers from OECD Publishing

Abstract: This working paper provides an in-depth review of the opportunities and challenges surrounding water investment in Africa. It also presents the state of play in the use of ultimate sources of funding (the “3Ts”: tariffs, taxes, and transfers) and financing for water on the continent, showing that these sources are not currently being used to their full potential and in the most efficient and equitable way. In this context, there is a wide range of options to scale up and improve water finance in Africa and to achieve SDG 6 - and, by extension, all the Sustainable Development Goals - on the continent. This paper follows the lifecycle of a project, paying particular attention to equity and affordability. It presents concrete proposals to strengthen water policy investment frameworks, build well-prepared and investment-ready water projects, scale up risk mitigation instruments for water, and diversify financing instruments and sources.

Keywords: Africa; economics; finance and investment; tariffs; taxes; transfers; water; water finance (search for similar items in EconPapers)
JEL-codes: F30 G10 G20 H23 H54 H81 O13 O20 Q21 Q25 Q28 (search for similar items in EconPapers)
Date: 2024-08-23
New Economics Papers: this item is included in nep-afr, nep-agr, nep-env and nep-ppm
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https://doi.org/10.1787/114791fd-en (text/html)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:envaaa:248-en

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