Addressing Africa’s water crisis through sustainable finance
Water scarcity is becoming a pressing challenge across Africa. As a result, the conversation around sustainability is shifting, and in the coming years, water will take a central role alongside energy.
South Africa, which has long grappled with electricity load shedding, now faces an additional and compounding crisis: water shedding. This once-unimaginable reality is impacting daily life, adding new urgency to water management and sustainability efforts.
While global discussions often focus on the energy transition, South Africa’s experience underscores how water scarcity is quickly becoming the next major sustainability crisis. This issue stretches beyond the country’s borders: it’s affecting many African nations and shaping their development priorities.
Water scarcity is not just about a lack of water; it’s about the accessibility and safety of this important resource. Lack of access to clean drinking water costs Africa over $28 billion in lost productivity annually, while the average African household spends about $1 600 over 5 years to boil water and treat water-borne diseases.
The extremes of our relationship with water are evident in both floods and droughts. For example, recent drought conditions in Zambia and Zimbabwe have led to dangerously low water levels in the Kariba Dam, critically impacting hydroelectric power generation. This resulted in over 24 hours of load shedding daily in Zambia, a stark reminder of the interconnectedness between water and energy security.
We are taking action through targeted education initiatives, developing a sustainability learning module on water and wastewater management for both employees and business banking clients.
By equipping stakeholders with the tools to manage water resources effectively, we are helping to foster a culture of sustainability that extends beyond the financial sector.
We are also supporting clients with innovative solutions to address water challenges. In Cape Town, we have partnered with a client specialising in smart water metering technology that tracks usage and detects leaks, significantly reducing wastage.In Zimbabwe and Malawi, we are working with agricultural clients to move away from heavy groundwater reliance by recycling wastewater for irrigation, conserving resources while boosting food security.
Although water management is still emerging as a national priority in South Africa compared to energy, awareness is growing among both public and private sectors. Our collaborations with local and global agencies shows that tackling water scarcity needs to be a coordinated and sustained approach.
Sustainability is not only about mitigating risks; it is also about seizing opportunities. Through our Positive Impact framework, anchored in 4 pillars— financial health and inclusion, business growth and job creation, climate change mitigation and adaptation, and infrastructure development—we ensure social outcomes stand alongside economic and environmental priorities.
Through education, technology and collaboration, we mobilise capital and expertise to help African businesses and communities adapt, grow and thrive.
Meet the experts behind the insights
Dr Manessah Alagbaoso
Head of Business Ecosystems and Sustainability at Business and Commercial Banking: Standard Bank Group