SUSTAINABLE DEVELOPMENT
“Water is the foundation of life, but it also underpins economic activity and
the centrality of water to employment, productivity and economic competitiveness. Despite its importance, water insecurity is growing. According to the UN Sustainable Development Goals Report , some 2.2 billion people lacked safely managed drinking water in 2024, while 3.4 billion people did not have safely managed sanitation. Rising demand
environmental sustainability.”
from population growth, urbanization, agriculture and industry is increasing pressure on already stressed water systems. Global water insecurity remains significant, with many river basins and aquifers being overexploited. The record-breaking heat in the summer of 2026 caused soil moisture deficits across North America and western Europe, while major waterways dropped to exceptionally low levels and water reservoirs reached critically low capacities.
Tikoe Industrial Park Project, Lesotho Completed 2016 Financing US$18 MN • US$8.4 million OPEC Fund • US$6 million BADEA • US$3.6 million Government
Without sound management of water, major economic risks arise. The World Bank estimates that water scarcity, exacerbated by climate change, could reduce GDP in some regions by as
much as 6 percent by 2050, while increasing migration pressures and the likelihood of conflict. Conversely, investments in water security, efficiency and infrastructure can generate substantial economic returns. In Sub- Saharan Africa, every US$1 invested in water supply and sanitation has been estimated to yield approximately US$7 in economic benefits. In this febrile global environment, water also touches upon geopolitics. The UN’s World Water Development Report 2024 emphasizes that water is increasingly a factor in prosperity, migration, security and international relations. More than 300 transboundary river and lake basins are shared by many countries, creating complex issues of riparian rights, allocation, transport, sovereignty and governance. For example, the Grand Ethiopian Renaissance Dam, the largest hydroelectric power plant in Africa, has been raising concerns in Egypt for more than a decade. Competition between
Results • Construction of approximately 2.1 km of potable water pipelines. • Installation of a 2 km sewerage system, including pumping stations and a wastewater treatment system with a capacity of around 350 m³ per day. • Construction of about 2 km of storm water drainage infrastructure, designed to manage surface runoff, reduce erosion and prevent localized flooding on the industrial site. Impact Supplying factory units within the industrial park. That included 20 water taps serving factory shells within the industrial park, which included 20 water taps, benefiting around 1,000 people with access to drinking water.
upstream and downstream users can fuel tensions, while cooperative water sharing arrangements can promote regional integration, trade and peace. For development institutions, the central challenge is to ensure that water is managed as a fundamental right and an economic asset. Despite its simplicity, this remains difficult to deliver because it requires countries to agree on affordability, pricing, environmental sustainability and investment. In turn, these require improved governance, infrastructure, resilience and transboundary cooperation. And with global water sector investment needs exceeding US$1.3 trillion, achieving sustainable development in the twenty- first century will remain challenging.
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