Analyses & Studies

Article | Economic Letter: East Africa and the Indian Ocean - August 2025

This 2025 Economic Letter provides an overview of recent macroeconomic developments and outlooks in East Africa and the Indian Ocean region.

This edition analyses the drinking water sector (excluding irrigation) in East Africa and the Indian Ocean (EAIO), assessing resource availability, access to potable water, governance frameworks, financing gaps, and investment needs in the context of Sustainable Development Goal 6 (universal access by 2030).

The report highlights strong regional disparities. While Mauritius and Seychelles enjoy near-universal access to safe water, several countries, including South Sudan, Somalia and Comoros, remain far below 50%. Importantly, water availability does not always translate into access: infrastructure gaps, weak governance and high levels of non-revenue water (often above 40%) significantly limit service delivery.

Rapid population growth, climate change, droughts and floods are further increasing pressure on already fragile systems. Rural areas and informal urban settlements remain particularly underserved, and sanitation coverage lags behind drinking water access.

The sector relies heavily on international financing, with key support from multilateral institutions and bilateral donors. France, through the Agence Française de Développement (AFD), plays a major role in funding infrastructure projects across the region, alongside the involvement of French engineering and water-treatment companies.

Achieving water security will require substantial investment, modernization of networks, improved governance, reduced water losses, and stronger climate resilience to ensure sustainable and equitable access across the region.