the african market for water innovation
DESCRIPTION
The Portuguese Water Partnership (PWP) presents the summary of a study on the market for water innovation in four African countries: Algeria, Angola, Morocco, MozambiqueTRANSCRIPT
Perspectives on the African market for water innovation
Francisco Nunes CorreiaPresident
Portuguese Water Partnership (PWP)
5 November 2014
Barcelona, Spain
Francisco Nunes CorreiaPresident of the Portuguese Water Partnership (PWP)
Perspectives on the
African market for
water innovation
EIP Water Conference 2014 November 5th | Barcelona
Key Topics
• Introduction What is the PWP and what is the content of this presentation
• Water challenges in Africa
• Zoom-in on four important African markets: Algeria, Angola, Morocco, Mozambique
• Final remarks
Portuguese Water Partnershipa solid and mature cluster of private and public institutions
dedicated to water at the global scale
Governmental agencies
Public and private companies
Universities and R&D centers Professional associations and civil society
Why is it a “partnership” ?
Africa
54 countries with varying degreesof economic and socio-political circumstances
The only region in the world in whichGDP is directly proportional to annual rainfall
Most population relies on rain-fed agriculturebecause that is a great lack of infrastructure
Variation in annual precipitation vs variation in GDP per capitain Sub-Saharan Africa
(Source: Cobos et al. 2008)
A reasonable share of world water, but …
On the average Africa uses less than 4% of water resourcesthis is 5 times less than US or Europe!
Africa has the lowest withdrawal per capita in the world1/4 of world average, 1/2 of second lowest
(South East Asia)
Africa loses: 5 % of its GDP because of poor coverage of water supply and sanitation
2 % of its GDP because of power outagesBetween 5 % and 25 % because of droughts and floodsAdditional 5 % with future impacts of climate change
Africa
87% world average
Only 10 countries equal toor above the world average
62% world average
Only 8 countries equal toor above the world average
Climate Change Also Aggravates NaturalWater Related Disasters
Floods Droughts
Africa has very little water storage capacityOnly 200 m3/capita, compared with
> 1000 m3/capita in most developing countries3500 m3/capita in Europe6000 m3/capita in the US
Africa
Summarizing:Extreme hydrological variability, aggravated by climate change, and feeble base of installed infrastructure.
Financial resources are not the main missing link !
Poor governance and the lack of capability are seen, for many, as much bigger problems than the lack of financial resources.
Innovation in Africa
Urban
Robust solutions
Rural
Adapted solutions
African market for water innovation:
A different reality?!
Smart technology
Different... but not so much!EIP framework applies almost entirely
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A triple challenge:
What are the local/regional needs ?
Which technology can we provide?Is it feasible in economic and financial terms?
Is governance appropriate to sustain change?
Project AguaGlobalA join venture of PWP and AEP
The largest Portuguese business association
African target markets selected
MoroccoAlgeria
Angola
Mozambique
Key challenges and opportunities
Algeria
• 4th largest Arab economy• Strong financial resource availability resulting in
revenues from oil • Investment plan (2030) in major modernization projects
and infrastructure construction • Openness to entry of foreign companies• Incentives to create partnerships in the private sector • Information on public procurement is available• Strong possibility of funding from the
Algerian banks • Association agreement with the EU, with total customs
dismantling until 2017.
Angola
• Political stability• Vast natural resources• Rapid population growth• Substantial public investment in the water
sector• Privatization programs in sectors held by the State. • Rebuilding basic infrastructure destroyed by war • Emergence of new "business cities" beyond Luanda
(Lubango, Huambo, Benguela, Lobito, etc.).
Morocco
• 2nd largest economy in the Maghreb and 6th in Africa
• Political and institutional stability• Advanced status agreement with the EU• Extensive programs of public and private works• Extensive modernization programs of infrastructure• Mechanisms of preferential credit• Greater openness to private sector
traditionally public areas (such as the water sector).
Mozambique
• Easy movement of capital• Partnerships to operate in the market not required • Construction sector has capacity to mobilize other
activities• Market growth and diversification • Major investments in infrastructure (water,
energy, construction and public works)• Increasing openness of the water sector to private
operators
Investment plans
Algeria
Investment in the Water Sector 2010- 2014: • Over US$ 23 billion (app. 5.8 billion per year)• Water distribution systems• Sewage treatment • Water pollution control • 32 new dams • 25 new systems of water transfer • Desalination plants • Irrigation and drainage water
Angola
Estimated Investmentin Water Sector 2013-2017:• Wastewater treatment : > US$ 1 000 M• Water Supply: US$ 3 000 M $• 11 new dams: 7 224 MW for hydropower plants• Expansion of water distribution networks• Water supply supported by IFI´s: US$ 400 M• Irrigation: only 4% of irrigation exploitedUS$ 1200 M annual investment (2013-17)
Morocco
Estimated Investmentin Water Sector 2013- 2016: • Over € 1.9 billion• Water supply: US$ 1300 M• Water supply in rural populations 500 M• Wastewater treatment: US$ 530 M• Improved performance: US$ 140 MUS$ 625 M annual investment in the water sector (2013-16)
Mozambique
Estimated Investmentin Water Sector 2015-2020:• 5 new dams : US$ 320 M• Increasing capacity of the systems : US$ 61 M• Rehabilitation of treatment systems: US$ 46 M• Water distribution networks: US$ 59 M• Acquisition of material: US$ 64 M• Consulting and training: US$ 17 MUS$ 150 M annual investment (2015-20)
Areas of opportunity
Algeria Angola Morocco Mozambique
PLANNING AND MANAGEMENT OF WATER RESOURCES
WATER SERVICES
HYDRAULIC DEVELOPMENTS
COASTAL MANAGEMENT
INTITUTIONS AND GOVERNANCE
Legend:Large business opportunities
Medium business opportunities
Low business opportunities
ChinaOther Asiancountries India
Final Remarks
• Very specific relationship between people and institutions• Importance of local communities and leaderships
• Adapt to different realities (urban/ periurban / rural)• Understand local policy makers viewpoints / priorities• Find suitable solutions to different contexts
• Water-energy-food nexus• Water-sanitation-health (WASH) dimensions
• Innovation beyond technology• Technology is not enough to solve structural problems• Innovation in governance is also important
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Portuguese Water PartnershipCentro Empresarial Torres de LisboaRua Tomás da Fonseca, Torre G, 8º piso1600-209 LisboaPortugal
www.ppa.ptTelephone: (+351) 210052200E-mail: [email protected]
Thank you !