Zimbabwe requires US$4bn for water infrastructure rehabilitation

Lazarus Sauti

Margaret Catley-Carlson, Vice-Chair, World Economic Forum, recently said water is an astonishingly complex and subtle force in an economy.

She added that it is the single constraint on the expansion of every country, and bankers and corporate executives have cited it as the only natural limit to economic growth.

Catley-Carlson declared access to water and sanitation as a fundamental human right, yet development of infrastructure for the provision of water and sanitation is problematic in developing countries.

It seems Catley-Carlson said this with Zimbabwe in mind because in most-if not all – parts of the country, physical infrastructure issues such as old and leaking pipes, and operational issues such as lack of metering, poor billing and collection procedures as well as illegal water connections represent serious constraints on the socio-economic transformation.

Challenges for access to water as well as the development of water and sanitation infrastructure in the country are daunting as there are still funding gaps that hinder economic growth.

However, Zimbabwe is seeking over US$4 billion investment in rehabilitation of old and new infrastructure in water and sanitation to close the water and sanitation infrastructure deficit as well as facilitate socio-economic development, according to the Secretary for Finance and Economic Development, Willard Manungo.

He told stakeholders attending the inaugural Water Resources Infrastructure Investment Summit in Harare that “closing the water shortages gaps will, therefore, require resources estimated at over US$4 billion for rehabilitation of existing water supply and sanitation facilities, investment in new infrastructure and improved conservation of existing sources.”

Manungo added: “This means that other players, particularly the private sector, will have to complement the efforts by the government and development partners if we are to make meaningful interventions in the water sector.”

Speaking during the same summit, Minister of Economic Planning and Investment Promotion, Simon Khaya Moyo, echoed Manungo’s sentiments and urged potential investors to tap the vast opportunities offered by the country in water infrastructure development.

“Zimbabwe is open to both in country and foreign investors. As a result, I wish to invite serious investors to invest into the water sector,” he affirmed.

Khaya Moyo added: “My ministry is ready to facilitate such investments. In Zimbabwe, it is indeed highly profitable to invest into the water and sanitation sector.”

To raise the required US$4 billion, he also encouraged the creation of joint ventures in water infrastructural projects through incorporations that take in the Build, Lease and Transfer (BLT), Build, Operate and Transfer (BOT), as well as Build, Own, Operate and Transfer (BOOT).

Officially opening the Summit, Vice President Emmerson Mnangagwa, urged potential investors to support the country in rehabilitation of existing and new infrastructure in water and sanitation.

He said the government remains committed to the development of infrastructure which is vital to adequate water provision, investment, economic growth and industrialisation.

“The Government of Zimbabwe fully appreciates the fact that limited water infrastructure inhibits the investment of productive capital, raises production costs, leads to the loss of a lot of production time due to water shortages and results in high prices of finished goods.

“Cognisant of the fact that limited water infrastructure is a major threat to any envisaged economic growth as well as competitiveness, we have supported this conference so that we can talk about the potential investments in the water sector,” he said.

VP Mnangagwa also convinced investors that the government would create a friendly environment for them.

“We are a country that observes and respects the rights of investors and as government we are prepared to listen to investor concerns and address them with the aim of making sure that we bring the cost of doing business in Zimbabwe to the barest minimum,” he said.

Like VP Mnangagwa, Manungo added: “We are aware that private investment only goes where there is confidence and policy certainty.

“In addition, the private sector requires up-to-date and well packaged bankable project documents in order to assess commercial viability of the projects.”

Environment, Water and Climate minister Saviour Kasukuwere believes tapping into the private sector will not only close the water infrastructure deficit, but allow accelerated development of water and sanitation infrastructure, enhance job creation as well as provide huge opportunities for the sector’s downstream and upstream industries.

The summit, he added, thus, marks a turning point in that focus is no longer on the government alone for the provision of capital for water infrastructure development, but on the private sector as well.

Water infrastructure, without doubt, is a smart investment.

Clean water transforms lives, communities and generations – and at a surprisingly low cost.

Accordingly, the government together with stakeholders from the public, private as well as social sectors with different socio-economic activities and interest in water should work in concert to address water problems in order to attain sustainable development.