The Portuguese Water Partnership (PWP) presents the summary of a study on the market for water innovation in four African countries: Algeria, Angola, Morocco, Mozambique

1. Perspectives on the African
market for water innovation
Francisco Nunes Correia
President
Portuguese Water Partnership (PWP)
5 November 2014
Barcelona, Spain

2. Perspectives on the
African market for
water innovation
Francisco Nunes Correia
President of the Portuguese Water Partnership (PWP)
EIP Water Conference 2014
November 5th | Barcelona

3. 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

4. Portuguese Water Partnership
a solid and mature cluster of private and public institutions
dedicated to water at the global scale

5. Why is it a “partnership” ?
Public and private
companies
Universities and R&D centers
Governmental agencies
Professional associations
and civil society

6. Africa
54 countries with varying degrees
of economic and socio-political circumstances
Most population relies on rain-fed agriculture
because that is a great lack of infrastructure
The only region in the world in which
GDP is directly proportional to annual rainfall

7. Variation in annual precipitation vs variation in GDP per capita
in Sub-Saharan Africa
(Source: Cobos et al. 2008)

8. A reasonable share of world water, but …

9. Africa
On the average Africa uses less than 4% of water resources
this is 5 times less than US or Europe!
Africa has the lowest withdrawal per capita in the world
1/4 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 outages
Between 5 % and 25 % because of droughts and floods
Additional 5 % with future impacts of climate change

10. 87% world average
Only 10 countries equal to
or above the world average

11. 62% world average
Only 8 countries equal to
or above the world average

12. Climate Change Also Aggravates Natural
Water Related Disasters
Floods Droughts

13. Africa has very little water storage capacity
Only 200 m3/capita, compared with
> 1000 m3/capita in most developing countries
3500 m3/capita in Europe
6000 m3/capita in the US
Africa

14. Summarizing:
Extreme hydrological variability, aggravated by climate change, and
feeble base of installed infrastructure.
Poor governance and the lack of capability are seen, for many, as
much bigger problems than the lack of financial resources.
Financial resources are not the main missing link !

15. Urban
Innovation
in Africa
Robust
solutions
Rural
Adapted
solutions
African market for
water innovation:
A different reality?!

16. Different... but not so much!
EIP framework applies almost entirely
Smart technology

17. 17
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?

18. Project AguaGlobal
A join venture of PWP and AEP
The largest Portuguese business association
African target markets selected
Morocco
Algeria
Angola
Mozambique

19. 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

20. 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 Investment
in 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 exploited
US$ 1200 M annual investment (2013-17)
Morocco
Estimated Investment
in 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 M
US$ 625 M annual investment in the water sector (2013-16)
Mozambique
Estimated Investment
in 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 M
US$ 150 M annual investment (2015-20)

21. 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

22. • 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
China
Final Remarks
• Very specific relationship between people and institutions
• Importance of local communities and leaderships
Other Asian
countries India
• Innovation beyond technology
• Technology is not enough to solve structural problems
• Innovation in governance is also important

23. Thank you !
Portuguese Water Partnership
Centro Empresarial Torres de Lisboa
Rua Tomás da Fonseca, Torre G, 8º piso
1600-209 Lisboa
Portugal
www.ppa.pt
Telephone: (+351) 210052200
E-mail: geral@ppa.ersar.pt