WATER INVESTMENT PROJECTS NOW A FINANCING PRIORITY
By King’s Office Correspondents
CAPE TOWN, SOUTH AFRICA – Water development projects have now been elevated to a priority level for funding following a growing the appetite among investors.
This is according to Moses Vilakati, the Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment at the African Union Commission.
In an interview at the Africa Water Investment Summit, Vilakati explained: “This summit enabled us to pool water projects needing financing, connecting them with investors seeking opportunities.”
The event, hosted just before the G20 summit chaired by South Africa, has identified nearly 100 projects, with 25 earmarked for immediate funding based on their bankability, assessed by a professional team.
Vilakati noted that Eswatini has submitted a proposal, though adjudication is handled independently. Addressed the shift in investor interest,Vilakati said: “Previously, water was sidelined in favour of roads and energy projects.
Now, the appetite is there because we have bankable water projects.” He cited Eswatini’s sanitation project in the Shiselweni region, which incorporates access to clean water.
The commissioner highlighted possibilioties in domestic financing opportunities, stating: “Geopolitical shifts have led us to engage local pension funds and banks, which show strong interest.
” The African Development Bank (AfDB) is investing US$12 billion annually to projects, but Africa requires US$30 billion annually to close the water funding gap. The AU supports countries by providing consultants to structure bankable proposals.
Eswatini faces a challenge to develop the Nondvo Dam, following lessons from the Maguga Dam, which no longer relies on outdated overflow systems. Vilakati added:
“The Nondvo Dam will serve agriculture, provide drinking water and support hydropower, making it attractive for financing.” The Mbuluzana Dam also holds potential, particularly for the Royal Eswatini Sugar Corporation’s irrigation expansion.
Discussing regional projects, Vilakati cited a viable initiative spanning Lesotho to Botswana, alongside plans for a Central-to-Southern Africa project, both aimed at delivering essential water resources. On dam sufficiency, he remarked:
“You can never have enough dams. Weather patterns guide our needs, and we must revive dam development programmes for irrigation and agriculture.”
On project selection, Vilakati clarified: “Bankability is key. Financiers need proof that projects will repay themselves, like Maguga Dam, which is paying its costs and boosted downstream livelihoods.”
He said this signals a significant step towards sustainable development and aligning with the AU’s 2025 Year of Water and Sanitation and Agenda 2063.
NEW WATER STRATEGY TO YIELD
QUICKER RESULTS – SHAKANTU
CAPE TOWN, SOUTH AFRICA – Minister for Foreign Affairs and International Cooperation Pholile Shakantu foresees faster progress towards Sustainable Development Goal 6, ensuring access to clean water and sanitation for all by 2030.
Speaking to the media at the AU-AIP Water Investment Summit, hosted by South African President Cyril Ramaphosa, G20 Chairperson, on 13 August 2025, she reflected on His Majesty King Mswati III’s speech, which invited investors to explore public-private partnerships for water projects worth over E40 billion in the country.
Shakantu praised His Majesty for setting the right tone, urging global cooperation between governments and financiers to meet SDG 6. She thanked South Africa for hosting the summit, describing it as long overdue for addressing access to clean water, an essential resource.
“It is high time cooperation on water projects extends beyond individual countries. Financial institutions are here today to provide opportunities to strategise on water development financing.
The summit has made this possible by bringing all funders together to engage governments on pooling of funds,” she said.
She noted the enormous task facing the continent to raise US$30 billion annually for sustainable water projects.
“His Majesty called for commitments from funders, and some financiers have responded. Matchmaking sessions will see governments present projects for pledges. Raising E30 billion yearly is key to water sustainability,” she added.
Shakantu lauded His Majesty’s speech for directing the summit, expressing confidence in the Minister for Natural Resources and Energy Prince Lonkhokhela to advance these initiatives.
She highlighted the global awareness that will be raised when South Africa tables the summit resolutions at the G20 Summit, which is exactly what the continent needs.
“We can now work collectively at a multilateral level, as water flows across borders. This approach will minimise water-related conflicts,” she said.
Shakantu congratulated Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment at the AU, Moses Vilakati for his exemplary role during the summit, which made emaSwati proud.
