A study into blended finance and integrated water resource management sustainability in Zimbabwe: The case of save catchment area

Abstract

The main objective of the study was to explore the relationship between blended finance and IWRM sustainability in the water sector in Zimbabwe. Blended finance characteristics investigated in this study were financial leverage, financial and development impact, and financial return on investment. Quantitative and qualitative IWRM factors were used as sustainable development measures.The study sample was selected using a stratified random sampling approach followed by simple random sampling. Further in pursuit of the study a quantitative research methodology was employed, utilising both descriptive and inferential statistics in analysing the data. For inferential statistics, correlation and regression analysis models were used. In addition, independent -tests and analysis of variance (ANOVA) models were performed on the data.The study found a significant negative relationship between financial leverage (independent variable) and IWRM sustainability (Dependent variable). However, the study also found that there is a significant relationship between financial and development impact (independent variables) and IWRM sustainability. The study also found no optimum capital structure with blended finance characteristics in the water sector institutions in Zimbabwe. Finally, the study found that the identified blended finance characteristics and approaches can be used as a good predictor of IWRM sustainability by water sector institutions in Zimbabwe.The implication of the research findings is that water institutions should increase their financial leverage for the purpose of increase financial and development impact and the return on investment when funding IWRM if they are to mitigate the risks of unsustainable development. It was recommended to policy makers for the introduction of a sector specific blending structure for the water sector. The researcher further proposes that future studies should investigate the role of institutional framework, water governance and macro-economic factors on the relationship between blended finance approaches and IWRM sustainability in the water sector in Zimbabwe, Save Catchment.