Spezialfonds der Afrikanischen Wasserfazilität (AWF) 2020-2022
By the end of 2025 the African Water Facility (AWF) aims to leverage EUR 15 billion in investments for the African water sector. This is intended to finance infrastructure and the provision of services for drinking water and sanitation, agricultural irrigation, hydropower and multi-purpose water storage in the African region.
Within the framework of projects prepared by the AWF, 25 million people will be provided with increased access to safely managed drinking water and 19 million with access to safely managed sanitation. In addition, 670,000 hectares of land are to be irrigated, hydropower capacity is to be increased by 2,100 MW and the volume of multi-purpose water reservoirs is to be increased by 14 billion m³.
For the period 2020-2022 ADA's contribution corresponds to 1.8% of AWF’s annual financing requirements and thus benefits about 88,000 people per year. The AWF is implemented by the African Development Bank (AfDB) and is a demand-driven, African institution-led project preparation facility that focuses on investment planning and preparation in order to mobilise investments to close the financing gap in the water sector. The AWF supports initiatives all over Africa.
AWF’s main activities consist of feasibility studies to validate project concepts and to make them investment-ready, as well as the development of project structure plans and transaction advisory services to make projects bankable and secure public and/or private financing. Seed funding is used to replicate or pilot innovative or alternative business models and technologies.
The current AWF strategy 2017-2025 focuses on leveraging investments through the following strategic priorities:
- Project preparation (75% of the fund budget)
- Catalytic investments (15% of the fund budget)
- Investment promotion (10% of the fund budget)
Despite the doubling of financial aid in the last 20 years, there is an immense financing gap in the African water sector, which prevents the fulfilment of the "African Water Vision 2025" and the Sustainable Development Goals of the United Nations (SDGs). The problem is not a lack of financial resources, but the lack of bankable projects. For this reason, the African Ministerial Council on Water (AMCOW) launched the AWF in late 2004.
Through its strategy 2017-2025, the facility aims to contribute to the "African Water Vision 2025" and the SDGs (especially Goal 6) by developing and financing pro-poor projects with a focus on both water resources management and water supply and sanitation service delivery in Africa. Particular emphasis is placed on the leverage effect of investments and the innovative effects of the projects.
The contribution to the AWF is complemented by ADC’s financing of a technical advisor for climate change and water resource management at the AfDB (2352-00/2019).