Social Water Entrepreneurship - Catalyzing Impact with Innovative Finance

• Final beneficiaries: Low-income households, in particular female headed, in LDCs and LMICs (Total 600’000 people, >50% women)
• Intermediary beneficiaries: Social and Impact Enterprises serving the final beneficiaries
• Secondary beneficiaries: impact investors in the water space

1. WASH SMEs in LDCs and LMICs are enabled to create additional social impact and mobilise private capital through impact linked financing and technical assistance. (75’000 people, of which >50% are women, with newly provided or improved access to basic/safely managed drinking water and newly provided or improved access to basic/safely managed sanitation)
2. Increased private financing is available to invest in WASH SMEs in LDCs and LMICs, fostering growth (525’000 people, of which >50% are women, with newly provided or improved access to basic/safely managed drinking water)

Risultati principali attesi:  

• Enabling 7 WASH SMEs to achieve social and environmental impacts through time-limited payments (Social Impact Incentives)
• Providing technical assistance to 4 WASH SMEs alongside ILF transactions
• Conducting ILF trainings and research studies and fostering public engagement on ILF outcomes
• Making catalytic investments in 2 funds and structuring a Results-Based Financing facility
• Supporting funds and potential investees with technical assistance
• Participating in international knowledge-sharing events and fostering public engagement on IF outcomes

Risultati fasi precedenti:   Over the last decade, SDC Water Section (formerly Global Programme Water) has implemented six projects limited in size and independent from each other with either the promotion of the private sector as the main focus or elements of it incorporated in the overall strategy of the project. An external review of the portfolio documented valuable lessons and developed strategic recommendations on how to further engage in water and sanitation entrepreneurship. With support from the Section E+E, the Water Section has evaluated multiple avenues to move forward towards a more comprehensive, systemic project in support of water entrepreneurship in LDCs and LMICs. Upon a thorough review of available options, a contribution to Aqua for All’s “Making Water Count 2” program, financed by the Dutch Government, was selected as the best way to push the needle in moving more (impact) capital towards water enterprises that provide much needed water and sanitation services to low-in-come households.

• Investment Credit Proposal in the pipeline: SDC (Section E+E) direct investment in Water Access Acceleration Fund (WA2F)
• Portfolio of Impact-Linked Finance projects
• Other Social Entrepreneurship Programs
• Inclusive Green Growth (IGG), Directorate of the Netherlands Ministry of Foreign Affairs