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The Water Crisis: The Economic Challenge Facing the Private Sector

By Fernanda Marmorek, CFO of Agua Segura

The water crisis is a silent but devastating threat to the private sector globally. The growing scarcity of this resource affects production, operating costs, and the viability of numerous industries. In particular, sectors such as manufacturing, agribusiness, mining, energy, and technology face significant challenges due to decreasing access to reliable water sources.

According to a WWF report, in 2021, freshwater had an estimated economic value of 58 trillion dollars, representing 60% of the global economy. However, this resource has historically been undervalued, leading to its excessive use and the degradation of water ecosystems. Overexploitation and pollution of water sources are generating adverse economic impacts for the private sector, increasing pressure on production costs and creating uncertainty in long-term investments.

Globally, the water crisis represents a significant threat to the economy. It is estimated that by 2050, around 46% of the world’s Gross Domestic Product (GDP) could originate in areas with high water risk, a significant increase compared to the current 10%. Furthermore, in 2018, economic losses related to water problems amounted to 38.5 billion dollars, although the actual impact could be higher due to a lack of data from many companies. In 2024, water-related disasters, such as floods and droughts, caused economic losses exceeding 550 billion dollars, in addition to the tragic loss of over 8,700 lives and the displacement of 40 million people.

Regions with the highest water stress include North Africa, where water extraction levels exceed 100% of available renewable resources. In Europe, approximately 20% of the territory and 30% of its population experience water stress each year, with Spain and the Mediterranean basin being the most affected areas. In Latin America, countries such as Mexico, Chile, and Peru face serious water challenges due to aquifer overexploitation and the impact of climate change on water availability.

How the Water Crisis Pressures Costs and Employment

The water crisis generates pressure on costs and employment mainly for three key reasons:

1. Increase in Operating Costs

Water is an essential input for many industries. When there is scarcity or restrictions on access to water sources, companies must seek more expensive alternatives, such as:

  • Purchase of water from private sources
  • Infrastructure for collection and treatment
  • Fines and environmental regulations

Example: In the food and beverage industry, reduced access to water forces companies to pay more for the resource, which increases production costs and, consequently, final consumer prices.

2. Disruption in Production and the Supply Chain

When a company cannot access enough water, production is reduced or even temporarily halted. This can occur due to:

  • Raw material scarcity
  • Interruption in manufacturing
  • Dependence on affected suppliers

Example: In Argentina, drought has reduced the yield of key crops such as soy and wheat, impacting not only farmers but also exports and companies dependent on these products.

3. Job Reduction and Effects on the Economy

When production decreases, companies face economic losses, which can lead to layoffs or reduced working hours. The most affected sectors include:

  • Agriculture
  • Industry and manufacturing
  • Services and commerce

Example: In Lima, a study estimated that a 30% reduction in water availability could lead to the loss of over 35,000 jobs due to production contraction.

Technological Innovations and Soil and Ecosystem Restoration to Face the Water Crisis

Given the growing water scarcity, the private sector is adopting various technological innovations to mitigate the impact and improve efficiency in resource use. These solutions seek not only to guarantee the sustainability of water supply but also to reduce operating costs and optimize production processes in key industries.

In the agricultural sector, the application of artificial intelligence (AI) and advanced sensors in irrigation systems has proven highly efficient. These systems analyze soil moisture and climatic conditions in real-time, allowing for precise adjustment of water use and reduction of waste.

Another key innovation is the use of atmospheric water generators, which extract moisture from the air and convert it into potable water. Startups in Latin America and Africa are developing these technologies to supply communities and companies in high water stress areas.

Furthermore, wastewater recovery and recycling have become a fundamental practice for industries such as textiles, manufacturing, and mining. Leading companies in these sectors are investing in treatment plants that allow water to be reused in their production processes.

In addition to implementing advanced technologies, the private sector is also promoting soil and ecosystem restoration strategies as a complementary solution to face the water crisis. Agricultural and forestry companies are adopting soil regeneration practices, such as reforestation and the use of cover crops, to improve water retention capacity and reduce erosion.

The restoration of wetlands and watersheds is also gaining relevance. Various industries have begun to invest in the protection and rehabilitation of aquatic ecosystems, recognizing their fundamental role in regulating the water cycle.

Companies that incorporate these strategies not only improve their environmental sustainability but also reduce operating costs by ensuring more stable access to the water resource.

Therefore, to mitigate the effects of the water crisis, it is essential for companies to adopt sustainable strategies, such as optimizing water use, diversifying water sources, and collaborating with the public sector. Investment in water infrastructure and the development of innovative technologies will be key to ensuring economic stability and operational continuity in a context of increasing resource scarcity.

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Getting to Know the Community: The First Step to a Successful Water Project.

Carolina Pittella – Project Manager at Agua Segura

When it comes to water projects in rural areas, the challenge isn’t so much about “what” to do, but “how” to do it. In my experience, understanding the community and the water resources available in the area is the first and most crucial step in developing an effective work plan. Listening to people, understanding their customs and needs, allows us to build realistic and sustainable projects that have a true impact on their lives.

Local Allies: Key to Understanding the Territory

In the process, I always start by including local work teams as key allies. They’re the first to point out the limitations and challenges we’ll face. While it might seem daunting at first, it’s at that moment when the right questions emerge, and the true scope of the project begins to take shape.

These teams know better than anyone the climatic conditions, appropriate schedules, local suppliers, and necessary logistics, such as road conditions or costs. Taking these aspects into account can make a huge difference in the project’s success and optimize available resources.

Foundations in the Territory: Bridges to the Community

In addition to local teams, foundations that have been working in the territory for years are fundamental pieces. They not only know the specific needs of the community but also facilitate initial contact and help adjust the project’s scope, if necessary.

Establishing a close relationship opens doors for implementing quicker and more effective solutions. Entering the territory hand-in-hand with someone known will pave the way for subsequent challenges and facilitate the community’s ownership of the solutions.

Adapted and Effective Communication

Another key factor in planning is choosing the right communication channel for each team. Not everyone communicates or receives information in the same way. Identifying whether a call, video call, message, or email is the best option helps maintain an efficient and effective workflow.

Furthermore, it’s essential to adjust communication frequency according to available time and, if necessary, conduct in-person visits to strengthen relationships and ensure the project progresses smoothly.

The Importance of Context and Teamwork

Ultimately, a project in a rural community can only succeed if we understand the context and build strong alliances with those who know the terrain best. Thus, teamwork becomes the key to bringing safe water to those who need it most.

At Agua Segura, we are committed to community projects that integrate technical solutions with active listening, cultural respect, and local participation. Because no system works if it’s not designed with people at its center, and no solution is sustainable if it doesn’t originate from the territory itself.

For more information please visit our website: aguasegura.com

How to Improve Irrigation Efficiency in Collaboration with Farmers-Agua Segura

Esther Camacho Guerrero – Director of the Regenera Bajío Program, Nuup.

In Mexico, like many other countries, the agricultural sector is the main consumer of water. According to INEGI data, it accounts for over 67% of the total volume used nationwide. This figure highlights the urgency of implementing sustainable water management strategies, especially in a context of growing water crisis.

The country’s water security is closely linked to the agricultural sector’s ability to adapt and make more efficient use of the resource. Especially small-scale agriculture, which occupies about 72% of Mexico’s agricultural territory, still heavily relies on gravity irrigation systems, also known as furrow or flood irrigation. These systems have an estimated efficiency between 20% and 40%, leading to significant water loss, often groundwater, which could be better utilized.

Optimizing Irrigation is Possible: Experience from the Field

At Regenera Bajío, we work with producers to improve irrigation practices and move towards effective water conservation. We have proven in the field that, with adequate technical advice and commitment from the producer, efficiencies of up to 80% can be achieved. This translates into less water extraction, reduced costs, prevention of agricultural diseases, and, in many cases, improved productive yields.

But beyond tools and technologies, the key to change lies in the human factor. The experience, knowledge of the territory, and willingness of producers are fundamental to achieving a transition towards more sustainable agriculture.

A People-Centered Methodology

Aware of the particularities of the Mexican countryside, we developed an intervention approach centered on the producers. Our team provides personalized technical advice, with field visits that allow us to analyze the specific conditions of each plot: soil type, slope, crops, availability of irrigation infrastructure, and access to water.

Through interviews and direct observation, we analyze current practices:

  • How do they irrigate?
  • When and how often?
  • Why is that system chosen?

With this information and data measured on the ground, we propose practical and accessible adjustments, such as modifications to irrigation scheduling, valve installation, or small leveling works. These changes, adapted to the producer’s reality, usually have an immediate and significant impact on water use efficiency.

Changing Deep-Rooted Habits: A Cultural Challenge

One of the most relevant challenges is modifying habits that have been passed down from generation to generation. Many producers repeat irrigation routines because “that’s how it’s always been done,” even if they are not always the most suitable for the current climatic and environmental reality.

Therefore, our approach prioritizes close accompaniment, establishing relationships of trust from the beginning of the process. Listening to their doubts, responding with technical evidence, and respecting their timelines are key to generating lasting transformations.

We also promote the active participation of producers in recording field data. This exercise allows them to observe for themselves the results of the implemented improvements, which reinforces evidence-based decision-making and empowers communities to care for their resources.

Reusing Knowledge: A Virtuous Cycle

Another essential aspect of the methodology is returning the information generated in each agricultural cycle to the producers. This not only improves water management in their productive units but also strengthens the collective memory of the territory.

Furthermore, water efficiency becomes a gateway to other key issues, such as aquifer recharge, water quality, or even the relationship between agriculture and the restoration of aquatic ecosystems. Water that is not wasted in the field is water that can be kept in rivers, wetlands, or natural reservoirs.

Training, Community, and Local Solutions

Training is a transformative tool. Therefore, we organize group workshops in the communities where we work, addressing topics such as:

  • Current water challenges in Mexico.
  • Rights and obligations of producers.
  • Tools for measuring soil moisture.
  • Alternative irrigation systems and their maintenance.
  • Successful cases of transition to sustainable agriculture.

These spaces not only generate knowledge but also strengthen community ties and foster the exchange of solutions that arise from the territory.

Beyond Water: Towards Regenerative Agriculture

Improving irrigation efficiency is just the first step. At Regenera Bajío, we seek to generate a systemic impact, where water security is articulated with climate resilience, rural well-being, and the agroecological transformation of the Mexican Bajío

This implies moving towards productive systems that:

  • Contribute to aquifer recharge.
  • Prevent the contamination of water bodies.
  • Strengthen community water projects.
  • Integrate into watershed management.
  • Respect natural water cycles.

Conclusion: Alliances for the Future of Water

In the face of the water crisis, we need concrete, scalable, and just solutions. Irrigation efficiency is not just a technical goal: it is a key strategy to ensure water today and tomorrow. But to achieve it, technology is not enough. It requires knowledge, accompaniment, and, above all, trust in the transformative capacity of the producers.

At Regenera Bajío, we continue to bet on this path: one that unites knowledge, promotes collective learning, and cares for water as the common good it is.

Learn more at https://aguasegura.com/

Dvigi: Ultrafiltration Technology for a Healthier and More Sustainable Future

Gisella Djenderedjian – General Manager of Dvigi.

Access to safe drinking water remains one of the most urgent challenges of the 21st century. Although it may seem like a guaranteed right, over 2.2 billion people worldwide lack secure access to water, and this has devastating consequences, especially in rural communities.

According to the World Health Organization (WHO), more than 485,000 people die each year from diarrheal diseases linked to the consumption of contaminated water. This reality hits women and children hardest, as they are often primarily responsible for collecting water in rural areas. This task not only exposes them to physical risks but also keeps them away from educational and work opportunities, perpetuating cycles of poverty and inequality.

Accessible Technology to Improve Water Security

In this scenario, technology presents itself as a fundamental ally in the fight to guarantee water security. In particular, ultrafiltration systems have consolidated as an effective, sustainable, and low-cost solution to improve access to water and sanitation in contexts where water infrastructure is limited or nonexistent.

This technology allows the removal of bacteria, viruses, and sediments without the need for electricity or chemicals, making it a viable tool for vulnerable communities. Furthermore, it contributes to improving water quality, which is vital for preventing waterborne diseases and improving overall well-being.

How Ultrafiltration Works

Ultrafiltration is a purification process that uses membranes with extremely small pores to remove contaminants from water. In the case of purifiers developed by Dvigi, this system is combined with activated carbon and sediment filters, achieving complete purification without removing essential minerals from the water.

“Our purifiers combine ultrafiltration technology with activated carbon and sediment filters, eliminating impurities and improving water taste. We want to be part of the solution to the global water problem,” explains Gisella Djenderedjian, General Manager of Dvigi.

These systems are designed to be simple to install, easy to maintain, and durable, making them especially suitable for communities that do not have constant access to technical services or infrastructure.

A Sustainable Approach with Community Impact

Beyond its efficiency, Dvigi’s technology has a clear focus on sustainability. By not requiring electrical energy or generating polluting waste, it aligns with principles of water conservation and sustainable water management.

In collaboration with Agua Segura, Dvigi works on filter implementation projects in rural communities across Latin America. These initiatives not only improve access to safe drinking water but also strengthen the social fabric through:

  • Awareness workshops on responsible water use.
  • Training in hygiene and healthy habits (WASH).
  • Training for the use and maintenance of the systems.
  • Promotion of corporate water responsibility by technology provider companies.

Each project is conceived as part of a comprehensive approach that prioritizes community education and long-term sustainability.

Community Projects with Real Impact

The community water projects in which Dvigi participates are designed to generate a transformative effect. Daily access to safe water implies a radical change in health, development, and life opportunities in rural communities.

Furthermore, by freeing women and girls from the responsibility of fetching water, greater access to education and economic participation is enabled, contributing to gender equality.

These projects also reinforce the communities’ resilience to the water crisis, which intensifies with phenomena such as droughts, extreme rainfall, or contamination of surface sources.

Complement to Ecosystemic Strategies

Although ultrafiltration technology operates at the household level, it is also part of a broader approach that recognizes the importance of protecting water sources. That is, it is not enough to purify water at the end of the process: it is also essential to take care of what happens in the natural environment.

Therefore, Agua Segura articulates this technological solution with other nature-based solutions for water strategies, such as:

  • The restoration of aquatic ecosystems.
  • The recharge of aquifers through soil conservation.
  • The protection of watersheds.
  • The improvement of agricultural practices to prevent contamination.

These approaches mutually reinforce each other: while the environment is preserved, immediate tools are provided to ensure safe consumption in homes.

Technology with Purpose

“Our commitment is to improve the quality of life in the regions that need it most, using sustainable technology that transforms access to water,” says Djenderedjian.

Dvigi’s mission is clear: to make access to safe water not a privilege, but a right accessible to everyone. Each installed filter represents an opportunity to break the cycle of disease and exclusion.

In contexts where investment in traditional infrastructure takes years or is unfeasible, these technologies represent immediate, effective, and low-environmental-impact solutions for household water replenishment.

Conclusion: Innovation for the Right to Water

The water crisis demands multiple responses, from ecosystem restoration to the development of appropriate technologies for each reality. Dvigi’s experience demonstrates that social and technological innovation can be part of a comprehensive, people-centered solution.

Ultrafiltration systems not only purify water: they open doors to health, education, and community development. In partnership with organizations like Agua Segura, this technology transforms into a tool to build a fairer, more resilient, and healthier future for all.

Getting to Know the Community: The First Step to a Successful Water Project.

How to Improve Irrigation Efficiency in Collaboration with Farmers-Agua Segura

Dvigi: Ultrafiltration Technology for a Healthier and More Sustainable Future