Facing an annual water and sanitation financing gap of up to $50 billion, African development experts are calling for a decisive shift toward domestic resource mobilization, including the strategic use of pension funds and insurance markets.
The call emerged during a high-level policy dialogue co-hosted in February 2027 by the African Capacity Building Foundation and the U.N. Office of the Special Adviser on Africa, alongside members of the OSAA Think Tank Network.
Moderated by Bassarou Diawara of ACBF, the discussion reflected the scale of Africa’s water challenge.
Nearly 411 million people across the continent still lack access to safely managed drinking water.
Inadequate infrastructure is estimated to cost Sub-Saharan African economies roughly 5% of GDP annually, according to Alban Ahoure of the Cellule d’Analyse de Politiques Economiques du Cires (CAPEC).
Panelists warned that without accelerated investment, climate-driven water scarcity could displace tens of millions globally by 2030, with Africa among the most exposed regions.
While science, technology and innovation were highlighted as critical enablers, including solar-powered pumping systems, smart metering and satellite-based drought monitoring, speakers stressed that innovation must be matched by political leadership, regulatory reform and sustainable financing models.
The current investment gap, estimated between $30 billion and $50 billion annually, cannot be bridged through external aid alone.
Experts pointed to Africa’s expanding domestic capital pools as an underused solution.
Pension funds, sovereign wealth instruments and insurance markets were identified as potential sources of long-term, patient capital suited to infrastructure financing.
The financing discussion aligns with the African Union’s 2026 theme on sustainable water availability and sanitation and supports implementation of Sustainable Development Goal 6 and the Africa Water Vision 2063 framework.
The outcomes of the webinar will inform the Africa Dialogue Series and the 2026 United Nations Water Conference, scheduled for December 2-4, 2026, in the United Arab Emirates (UAE).
