Zambia Hosts Finance Ministers, Pushes Water Security Up Economic Agenda

Zambia has hosted a high-level engagement for finance ministers at its embassy in Washington D.C,
using the gathering to press for water and sanitation to be treated as core economic priorities rather
than social-sector add-ons.

The meeting, convened on behalf of the Sanitation and Water for All (SWA) partnership on the
sidelines of the ongoing IMF–World Bank Spring Meetings, brought together ministers and senior
officials from Zambia, Malawi, Chad and others, among them European and Caribbean states,
alongside development partners.

The delegates broadly agreed that water security is increasingly central to macroeconomic stability,
productivity, climate resilience and long-term growth, reflecting a shift in how fiscal authorities are
approaching the sector.

Keynote speaker and Zambia’s Minister of Finance and National Planning, Dr. SITUMBEKO
MUSOKOTWANE, MP, said water security will continue to be given the priority it deserves in fiscal
frameworks. He observed that while Zambia has increased allocations to the sector, financing gaps
remain significant relative to development targets and rising demand.

Dr. MUSOKOTWANE said historical underinvestment reflected both fiscal constraints and the sector’s
traditional exclusion from core economic planning, adding that improving efficiency and institutional
capacity was as important as mobilizing new funding. He said, under the New Dawn Administration,
Zambia is now moving towards a more integrated approach combining fiscal prioritization,
decentralized financing such as the Constituency Development Fund and efforts to attract private
capital through improved governance and project management.

Officials from other countries cited similar pressures, pointing to limited fiscal space and rising climate
related risks, including the impact of water shortages on food systems, energy supply and inflation.
The event also advanced discussions around a summit-level initiative under the SWA framework to
elevate water security into a national compact backed by credible fiscal plans and measurable targets.

Zambia’s hosting of the event underscores its push to shape policy discussions at the Spring Meetings,
positioning water security as a key pillar of economic resilience and investment readiness.

Against that backdrop, Ministry of Finance and National Planning Permanent Secretary for Economic
Management and Finance, Mr. MULELE MULELE, later called for water security to be elevated further
as a core economic priority, warning that failure to secure water resources could undermine growth,
fuel inflation and deter investment.

Speaking at the World Bank dialogue on “Water Security for Africa’s Future,” Mr. MULELE said water
should no longer be treated as a sectoral issue but as a macroeconomic and fiscal concern. “Countries
that fail to secure water will struggle to sustain growth, manage inflation and protect livelihoods,” he
added.

The dialogue event brought together ministers and senior officials from across Africa, alongside
development finance institutions, private investors and international partners.
Mr. MULELE said water-related shocks, including droughts, can quickly translate into fiscal pressures
through higher spending on food imports, emergency relief, power shortages and infrastructure
repairs. He urged country delegates to classify water investments as productive capital rather than
social expenditure.

The Permanent Secretary called for stronger integration of water priorities into medium-term
expenditure frameworks, climate budgeting and public investment systems, with a focus on projects
such as dams, irrigation schemes, sanitation and urban supply networks.
On reforms, Mr. MULELE highlighted the need to strengthen water utilities through improved
governance, metering, tariff adjustments that protect vulnerable groups, and efforts to reduce losses.
He also stressed the role of water as a cross-cutting economic enabler, underpinning agriculture,
mining, manufacturing, tourism and energy.

Drawing on Zambia’s experience, the Permanent Secretary said water security is closely tied to
hydropower generation, irrigation expansion and climate resilience, adding that reliance on rain-fed
agriculture remains a structural risk across the continent.

Mr. MULELE called for greater use of concessional financing and domestic resources to mobilise
private capital through guarantees, blended finance and project preparation support, noting that
many countries lack bankable project pipelines rather than investment ideas.
He said multilateral lenders and climate finance institutions have a key role in de-risking long-term
investments and attracting institutional investors. “If Africa secures water, Africa secures growth,”
Mr. MULELE said. “The focus must now shift from dialogue to delivery.”

Others accompanying the Minister to the IMF and World Bank Group Spring Meetings are Bank of
Zambia Governor Dr. DENNY KALYALYA and his deputy for operations Dr. FRANCIS CHIPIMO; and
Zambia Revenue Authority Commissioner for Direct Taxes Mr. RICHARD KAPASA. Zambia has also
been represented at the Global Parliamentary Forum, held on the side-lines of the Meetings, by
Honourable FRED CHIBULO CHAATILA, MP, Chairperson of the Parliamentary Planning and Budget
Committee, and Honourable SIBESO SEFULO, MP, Chairperson of the Parliamentary Committee on
National Economy and Labour Matters.

The meetings end, today.