Water markets in Africa: an analysis of Mozambique, Tanzania and Zimbabwe

Irrigated agriculture is important for poverty alleviation and improving food security in Sub-Saharan Africa (SSA) but has often failed. At the same time, strong population growth continues to increase demand for water for urban and other non-agricultural users. To achieve redistribution without reducing food production requires a significant increase in irrigation water productivity. We use the water market readiness assessment framework to assess whether conditions exist to establish markets in Mozambique, Tanzania and Zimbabwe. We conclude that formal water markets are not currently feasible. While there is some sound governance capacity for surface waters, this is largely absent for groundwater resources. Where there is agricultural water efficiency the drivers are pull factors, namely labour and energy savings. Examining three sub-national case studies, we find that increasing competition between sectors may create opportunities for limited, formal and informal water trades. This could be a catalyst for future development of water markets.