The World Wide Fund for Nature (WWF) and Anheuser-Busch InBEV through its local subsidiary company Zambian Breweries Plc in partnership with the Ministry of Water Development and Sanitation and Environmental Protection officially launched their Strategic Investments Pathways Report on Wednesday 14th April 2021, this report is based on a case study which was carried out on the Zambezi River Basin, the kafue flats which is situated between the Kafue Gorge and Itezhi-tezhi dam, this joint group is to deliver projects that address the current pressures on the landscape, which include over-exploitation and water pollution.
WWF is an environmental conservation international organization that has been operating in Zambia since 1962. It runs several nationwide programs focusing on fresh water, energy, climate change, wildlife, food, sustainable agriculture, youths as well as forestry in partnership with both the public and private sector and civil society organizations.
Anheuser-Busch InBev, the parent company of Zambian Breweries, is the worlds largest brewery, it produces both alcoholic and non-alcoholic beverages. Zambian Breweries’ reach in sustainability include among others smart agriculture and water stewardship and with over 100,000 livelihoods impacted positively along the local value chain.
The strategic Investment pathways Report is a result of the study jointly commissioned by WWF and ABInBEV and undertaken by the organization for Economic Co-operation and Development (OECD) to asses the policy environment for sustainable strategic investment led by the private sector with a focus on the Zambezi river basin. The report covers a number of issues under the following three major themes. Water as a driver for sustainable growth in Zambia, Strategic Investment pathways in the Zambezi Basin and Options for mobilizing investment.
This initiative is actually a third joint venture that Zambian Breweries is undertaking with THE World Wide Fund for Nature as they have already carried out successfully initiatives before around Zambia such as the etower springs in Ndola. Water is typically the basis of life that we use in various sectors of the economy such as manufacturing, mining, agriculture and electricity just to mention a few. Basically we need it to survive thus we need to sustain this resource and manage it correctly. This report is a way of promoting sustainable investment in the water sector. Like the country’s Director for Zambian Breweries MR Jose Moran mentioned in his speech without water we wouldn’t have beer.
Zambia is a water economy and it accounts for 40% of Zambian wealth of which 73% is renewable. Which is valued at US$644 Billion according to a 2014 report. The Zambezi Basin provides a source of food for locals, water for agriculture and various industries and 52% of the Zambian Population, including residents of the capital Lusaka. Water is generally an undervalued and underpriced resource, this situation contributes to a persistent financing gap for water related investments globally and locally.
If we have a sustainable Zambezi well have a sustainable economy as these will move hand in hand and this will increase national capacity thereafter promoting GPD and us realizing the SDGs as well as the 7th National Development Plan. To bridge the financing Gap we need collaboration from both government and the private sector for us to secure the resource and not deplete it. The current investment is unacceptably low in Zambia and there is no deliberate action being taken for long term maintenance of the resource. Better valuing of water will stimulate economic growth as well as investment as we see Zambian Breweries setting an example for private investment by being part of this conversation of conservation, maintenance and sustainability of water should be an incentive to different companies in the Private sector to Invest in the water sector as there is so much potential which has not nearly been reached.
The key findings related to the enabling environment for investment were a strong legal and policy framework exist but implementation remains a challenge, improved coordination ultimately improves water management and constrained resources make enforcement difficult.
Thus the study came about because not only private sector can close the gap. We need awareness of Zambia as a water economy and find innovate ways to close the gap and secure this as a permanent resource for long term resilience of eco-systems and businesses. Some of the recommendations given in the study are sequence bankable projects in a strategic investment pathway and link to the national Development Plan, Building on the already existing policy framework to strengthen enabling environment for investment, Capture sources of funding and explore innovative financing for water related investment and including the private sector as a contributing factor which gives the private sector an opportunity to contribute to sustainability.
In a key note speech given by MR Richard Lungu he addressed that the country is looking to innovate and finance in the water sector and the challenges being faced are financing barriers which the private sector can significantly contribute to financing of the water sector. The government through the Ministry of Water Development, Sanitation and Environmental Protection are implementing policies to safeguard water resources and are making an effort to review and strengthen the resource. Policy instruments have been put in place such as tariffs and water obstruction polices among others. They are as well creating a ministry of water development to oversee all water related issues this is all in order to realise the 7NDP to sustain the environment. He also mentioned that the risk of undervaluing water are far too great to ignore.
WWF is working with the Ministry of Water Development, Sanitation and Environmental Protection on Developing the landscape Finance Plan (LFP) for the lower Kafue. This document will look to implement some of the key findings from the full report by creating a clear vision on the finance needed to ensure that the Kafue is developed sustainably. The LFP will outline both bankable and non-bankable projects and is being developed with support of ABInBev and the Zambian Government.