AfDB Outlines $12 Billion Water Sector Investment Ahead of 2026–2030 Strategy

Preparations are underway for the Bank’s 2026–2030 Strategic Action Plan, which will guide regional water sector investments over the next five years.

As Africa faces mounting challenges of climate change, urbanization, and population growth, the African Development Bank (AfDB) is positioning itself at the forefront of mobilizing large-scale financing for water and sanitation development. Preparations are underway for the Bank's 2026–2030 Strategic Action Plan, which will guide regional water sector investments over the next five years.

Aligning Priorities with Impact-Driven Projects

Speaking at the Africa Union – Africa Investment Programme (AU-AIP) Water Investment Summit 2025, held over three days, AfDB's Director of the Department of Water and Sanitation, Mtchera Chirwa, emphasized that the Bank is committed to pursuing high-impact projects capable of transforming water security across the continent.

Out of the 80 operations showcased at the summit, 27 were found to be closely aligned with AfDB's priorities. These represent a financing envelope of USD 2.8 billion for the coming years. Chirwa noted that the list represents only a fraction of the opportunities available in the sector and underscored the need to expand financing partnerships.

Focus on Multipurpose and Integrated Initiatives

For the next strategic cycle, AfDB plans to prioritize multipurpose, integrated projects through its Water-Energy-Food Security-Ecosystem (WEFE) special initiative. This initiative, launched in Dakar under the patronage of Senegal's Minister for Hydraulics and Sanitation and AMCOW Chairperson, Dr. Cheikh Tidiane Dieye, is expected to mobilize USD 1.2 billion by 2027, with projections to quadruple this figure by 2030.

Between 2021 and 2030, AfDB has pledged to invest USD 12 billion in the water sector. At the same time, the Bank has committed to quadrupling its climate financing, reaching USD 25 billion by 2025, with the water sector earmarked as a critical beneficiary.

Expanding Urban Sanitation Investments

Chirwa highlighted the urgent need to strengthen sanitation infrastructure across Africa's rapidly urbanizing cities. Through the Africa Urban Sanitation Investment Initiative (AUSII), developed in partnership with the Bill & Melinda Gates Foundation, AfDB seeks to catalyze EUR 6.7 billion in urban sanitation investments. This initiative is expected to improve service delivery, reduce public health risks, and create sustainable urban ecosystems.

Strengthening Service Providers and Utilities

AfDB's new strategy goes beyond infrastructure by prioritizing the transformation of water and sanitation service providers. Chirwa cautioned that infrastructure alone is insufficient without strong, competent, and financially viable operators.

To this end, AfDB has launched the Water Utility Transformation and Viability Enhancement Initiative, targeting reforms across the USD 17.8 billion Capex market. Markets will be classified based on their immediate serviceability, ensuring that support is directed where it can generate the most rapid and sustainable results.

Call for Stronger Government Commitment

Chirwa reaffirmed AfDB's support for regional member countries' water development agendas, but stressed the importance of governments playing their part. He called on member states to increase contributions to the African Water Facility (AWF) Trust Fund, describing it as a win-win arrangement. Stronger government contributions, he said, would help attract traditional donors and unlock new streams of investment.

Driving Africa's Water and Climate Agenda

As Africa confronts the twin challenges of water scarcity and climate resilience, AfDB's 2026–2030 Strategic Action Plan signals a clear shift toward large-scale, impact-driven investment. By coupling infrastructure with strengthened utilities and mobilizing billions in financing, the Bank aims to help its 54 member countries achieve sustainable water and sanitation development, while advancing climate resilience across the continent.