The World Bank has warned that Africa is losing as much as $200 billion annually in potential economic gains due to poor sanitation, stressing that the continent’s gross domestic product could rise by up to 5 percent with adequate investment in water and sanitation infrastructure.
The warning came in a new report titled “The Global Sanitation Crisis: Pathways for Urgent Action,” released on Tuesday. The Bank noted that nearly two out of every five people worldwide still lack access to safe sanitation, with devastating consequences for health, the economy, and the environment.
According to United Nations estimates, more than 3.5 billion people globally live without proper sanitation facilities, a situation that fuels the spread of preventable diseases such as cholera, typhoid, and diarrhoea. These illnesses claim hundreds of thousands of lives each year, particularly among children under five.
In Africa, the challenge is worsened by rapid urbanisation, poverty, and inadequate infrastructure. Many informal settlements in cities lack sewage systems, forcing residents to depend on unsafe alternatives that pollute water sources.
The World Health Organisation has repeatedly linked poor sanitation to reduced productivity, noting that it keeps children away from school and prevents adults from working. Global development bodies, including the UN and the World Bank, have tied improved sanitation to achieving Sustainable Development Goal 6, which seeks “clean water and sanitation for all” by 2030.
The World Bank stressed that the burden of poor sanitation falls heavily on low- and middle-income countries, where climate-related pressures such as flooding, drought, and rising sea levels are straining already fragile systems.
“By investing in resilient and inclusive urban sanitation, countries can turn this vicious cycle into a virtuous one,” the report stated. “Stronger sanitation systems not only protect human health but also create jobs, reduce pollution, cut greenhouse gas emissions, and strengthen urban resilience.”
The Bank also highlighted the economic benefits of investment, revealing that every $1 spent on water and sanitation in Africa generates up to $7 in returns. Beyond boosting GDP, improved sanitation in schools has been shown to increase enrollment, particularly among adolescent girls, as seen in India and Brazil.
The report urged governments and stakeholders to prioritise sanitation funding, design climate-resilient infrastructure, and promote innovation in the sector. It also recommended circular economy models that transform waste into useful resources such as energy and reusable water.
“Achieving climate-resilient urban sanitation is possible, but action must start now,” the World Bank concluded. “Governments, service providers, businesses, and communities must collaborate to build systems that safeguard people, prosperity, and the planet.”
