Zambia embraces blended financing to unlock $6 billion water investment plan

In response to intensifying climate impacts and chronic underinvestment in water infrastructure, Zambia is pursuing an ambitious blended financing approach to raise nearly $6 billion by 2030 for water investments through the Zambia Water Investment Programme (ZIP). The initiative, developed under the Continental Africa Water Investment Programme (AIP), aims to bolster water security, sanitation, and climate resilience across the country, with a focus on leveraging both public and private capital.

Zambia’s push for financing follows the severe drought of 2024, the driest February in four decades according to NASA Earth Observatory. The drought devastated agricultural production, with over one million hectares of maize crops withered in central and southern Zambia. As the effects of climate change grow more acute — especially through water-related disasters like droughts and floods — the urgency for resilient infrastructure investments has never been greater.

To bridge the substantial financing gap, the Government of Zambia, through the Ministry of Water Development and Sanitation, is developing a blended financing platform for the ZIP, with funding from the Green Climate Fund (GCF). The funding is part of the Africa Water Investment Programme (AU-AIP Multi-Country GCF Readiness Project), which aims to boost climate finance access, focusing on institutions that can support water-sector-related activities across 15 African countries.

“As one of the AIP founding countries, Zambia will support the establishment of the AIP international blended climate resilient water investment facility to leverage ODA, grant finance or public resources to derisk priority climate resilient water investments using a variety of innovative financial instruments and sources,” said Mr. Joseph Mbinji, AU-AIP Multi-Country GCF Readiness Project at the Global Water Partnership Southern Africa (GWPSA).

During a stakeholder workshop held in Lusaka last month, Acting Permanent Secretary under Zambia’s Ministry of Water Development and Sanitation, Richard Kangwa called for a new mindset. “We must move beyond traditional funding models and embrace a collaborative financing approach that integrates public and private investments, donor support, and innovative financial instruments,” he said.

Zambia’s strategy aligns with the Continental Africa Water Investment Programme (AIP), targeting climate-resilient, sustainable water development. With strong institutional backing and international partnerships, the ZIP represents a blueprint for other African nations facing similar water financing challenges.