Finding solutions to Africa’s water crisis

Access to clean water and sanitation is a basic human right that millions of people around the world still lack. In Africa, the water crisis looms large, with many communities struggling to access safe and affordable water. WaterEquity, a pioneering organization focused on impact investing, is spearheading efforts to address this pressing issue by supporting infrastructure projects and growth-stage companies across regions like South Africa, India, Brazil, and Kenya. The Chief Investment Officer of WaterEquity, Marlene Hormes, recently sat down with CNBC Africa to discuss the organization's bold steps towards solving the water crisis and promoting water equity. Hormes emphasized the urgent need for increased investment in water infrastructure, citing the World Bank's estimation that four times the current funding levels are required to achieve universal access to clean water and sanitation. WaterEquity has raised over $450 million to date to tackle the water and sanitation crisis. The organization has launched a new fund dedicated to investing in infrastructure projects that aim to deliver water and sanitation services to underserved populations in emerging markets across Africa, Asia, and Latin America. Hormes highlighted two key investment areas that WaterEquity is focusing on. The first category is infrastructure projects, including wastewater collection, treatment, and distribution systems. The second category is growth-stage companies with innovative technologies and services in the water and sanitation sector that require capital to expand their reach and impact. In terms of profitability, Hormes explained that water-related projects and businesses can generate revenue through various means. Municipalities may charge fees for water services, while companies can sell water-related products like meters, tanks, and rain harvesting systems. By investing in projects that lower costs and improve water access, WaterEquity aims to create sustainable and financially viable solutions to the water crisis. The organization is actively seeking partnerships with governments, companies, and investors to scale up its impact in the water and sanitation sector. Institutions interested in funding water projects can apply for financing ranging from $2 to $15 million through WaterEquity's website. WaterEquity's innovative approach to impact investing in the water sector is paving the way for sustainable solutions to one of the most critical challenges facing communities worldwide. By mobilizing capital, fostering partnerships, and supporting innovative projects, WaterEquity is driving positive change and building a future where clean water is accessible to all.