The project will involve the supply and implementation of gravity‐fed drip kits that can irrigate small
plots of up to 4 000 m2. The project components will include the introduction of gravity‐fed drip
irrigation in localities where pressurised irrigation systems cannot be implemented due to the
absence of irrigation supply networks and electricity. Coupled with the drip irrigation system,
fertigation technology will be introduced whereby soluble fertilisers will be mixed with irrigation
water for the fertigation of vegetable, fruit and flower crops. There will be one pilot project in each
of the SADC Member States.
The project proponents are the Ministries of Agriculture of the SADC Member States. The estimated
cost of the project amounts to US$11.5 million for all the pilot projects in all the SADC Member
States. This includes designs, the water supply, irrigation system components, fertilisers and capacity
building for each pilot project. The ToR and project specifications can be done in 2013, with
implementation commencing in 2014. Thereafter, the project can be replicated in the SADC Member
States.
Possible project financiers are UNDP and the FAO. The project can be considered to be in Phase 2 of
the ICA Project Development Phases.
Project challenges are the timely sourcing of finances and future funds for project replication.
3.1.5
Financing and Funding Sources
Table 3.7 clearly shows that the SADC region is receiving the least amount of funding or funding
commitment for the water supply services sector per capita compared to four other RECs of Africa. If
the SADC agenda of poverty eradication is to be realised and meet the MDG targets, the region
should receive and allocate financing towards the water supply services sector of the order of
$2.6 billion annually or $10/capita/year, which is about six times the current financing/commitment
levels.
The SADC Member State governments, with support from ICPs, investment loans and grants, have
been the primary funders of infrastructure developments. The grants, in the form of donor aid in
most cases, have been forthcoming mainly to the water supply and sanitation sub‐sector. For the
irrigation sub‐sector, investor finance is more difficult to obtain as the financial tariff flows from
irrigation projects seldom cover the capital, operation and maintenance costs.
In most of the SADC regional Water Sector infrastructure developmental projects, experience has
shown that the problem is not always the lack of finance, but the lack of good projects that are
bankable. Good projects means well defined and well structured projects that make business sense.
Examples of other challenges faced in financing water infrastructure are project preparation for
funding, investment policies, cost reflective tariffs, governance and accountability issues and
institutional capacities for infrastructure implementation. There currently are SADC initiatives to deal
with some of these challenges, such as the setting‐up the SADC Infrastructure Project Preparation
Facility within DBSA, the African Water Facility, the SADC Water Infrastructure Fund, financed by KfW,
and the SADC Water Infrastructure Investment Conferences.
Domestic budgets funded by SADC Member State governments still comprise a fairly large proportion
of the funding for the Water Sector. However, the distortion arises when one compares various
budget shares of other sectors with the Water Sector. The Water Sector is unable to show its return.
This is mainly because the real returns manifest themselves in other sectors such as health and
education. One dollar invested in water will show up tenfold in health, but maybe very little in the
Water Sector. This is one of the reasons why the SADC Water Division carried out the project on
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