The role of the private sector was becoming increasingly essential in the roll-out of water infrastructure and in enabling access to water, International Finance Corporation (IFC) Southern Africa senior country manager Saleem Karimjee said on Monday.

He urged governments to promote and harness private sector involvement in the water sector to enable Africa to “up its game” in supplying water to its communities

Governments could build on the private sector’s successes and experiences and package potential water projects into public–private partnerships (PPPs), mobilising private-sector capital and skills to speed up the roll-out of infrastructure in innovative ways and sharing the risk.

Karimjee was speaking at a Water Works conference in Midrand hosted by the IFC, the Japanese International Cooperation Agency and the Development Bank of Southern Africa (DBSA) to promote private-sector participation in the water sector and encourage Japanese private-sector involvement.

“PPPs play an important role in providing access to safe water and sanitation in Africa and we are ready to support Japanese firms in investing in infrastructure on the continent. Our activities in this regard are an important part of Japan’s efforts on private-sector participation in development,” Minister at the Embassy of Japan to the Republic of South Africa, Shinichi Asazuma, said.

DBSA projects preparation unit civil infrastructure specialist Mike Marler said that, while many service delivery backlogs had been dealt with, the maintenance of infrastructure, institutional capacity, lagging infrastructure development technology and deteriorating water quality remained inhibitors.

Globally, about 2.5-billion people lacked access to sanitation and at least 780-million people had no access to safe drinking water, resulting in global economic losses reaching $260-billion a year.

Africa had the “lowest rates in the world”, with only 62% of the population having access to safe drinking water and 60% access to adequate sanitation.

It was estimated that the roll-out of sufficient water infrastructure in Africa would cost about $670-billion over the next 10 to 15 years – half of which could potentially be sourced from governments’ collective fiscus.

Further, as water consumption rises, it was expected that by 2030, there would be a global water shortage of close to 40%, making it critical to fast-track water projects and bring the private sector on board.

South Africa already boasted a “highly successful” PPP team under the National Treasury, which had completed 24 PPP projects and had another 60 potential PPP projects in the pipeline, spread among a range of industries including ecotourism, municipal water services and healthcare, said National Treasury senior project adviser James Aiello.

He noted that key to successful PPP projects was capacitated, enthusiastic government officials, complemented by demonstrated, capable private-sector interest, a functional legal system and an enabling PPP framework.

IFC senior water industry specialist Jamie Jamieson and Bigen African Services divisional manager principal for water and sanitation Dr Mias van der Walt cited successful small and large-scale PPP water projects in Egypt, Uganda and South Africa.

Jamieson added that a benefit of PPP projects was that they would not be derailed during civil unrest, which usually halted government projects, as the funding was not reliant on the public purse.

Further, PPPs ensured financial discipline, enabled the appropriate tariff structure and effective billing and collection systems, as well as opening low financing and investment opportunities to the public sector through the enhanced security of partnerships and reduced risk.