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A B
et ter
W
or ld
more capital to be unleashed towards WSS portfolios. By
reaching more than half a million households in just four
years with a unit cost significantly lower than traditional
WSS programs, WaterCredit in India demonstrates that
microfinance can significantly amplify the reach and impact
of investments in the WSS sector.
On a global level, multilateral stakeholders like the World
Bank stress the role of blended finance – the strategic use of
development finance and philanthropic funds to mobilise
private capital flows to emerging and frontier markets
8
– in
achieving SDG 6. It has been touted as an effective tool for stim-
ulating lending interest from the commercial financial sector,
helping educate commercial banks about opportunities in the
financial sector as well as dispelling the perceived risks related
to WSS lending
9
. This messaging aligns directly with Water.
org’s model and helps propel the importance of finance-driven
solutions for the WSS challenge.
Beyond WaterCredit
Evidence from Water.org’s programs demonstrate that a
viable market can be made for financing water and sanitation
improvements. However, WaterCredit alone cannot make up
for the gap in financing that is needed to achieve SDG 6. To
expand and accelerate impact, Water.org has been developing
and testing new innovations on the central theme of financ-
ing for water and sanitation. These new approaches include
working with utility companies, the supply chain, and impact
investing to increase both the amount of financing mobilised
Bangladesh
India
Cambodia
Indonesia
Philippines
Number of WaterCredit loans
79,386
1,101,725
16,618
34,682
222,505
People reached
423,485
4,570,982
55,373
142,684
962,005
Women borrowers (%)
98
97
85
86
99
Loan amounts disbursed (US$)
20,181,906
220,640,074
7,368,529
8,264,689
47,952,863
Water.org grants to partners (US$)
2,644,573
11,012,189
436,940
1,315,857
673,536
US$ leveraged ratio
7.63
20.04
16.86
6.28
71.2
Cost per person (US$) – partner grant cost only
6.24
2.41
7.89
9.22
0.70
Average loan size (US$)
254
196
443
238
216
Average repayment rate (%)
98
99
-
99
99
Table 1: Key characteristics of loans disbursed under the WaterCredit program as of August 2017
Ethiopia
Ghana
Kenya
Uganda
Peru
Number of WaterCredit loans
322
149
77,326
2,740
109,203
People reached
1,977
17,121
439,010
68,653
423,177
Women borrowers (%)
43
38
55
45
47
Loan amounts disbursed (US$)
194,190
420,448
21,518,516
2,292,573
134,629,441
Water.org grants to partners (US$)
305,802
64,031
1,586,567
637,798
687,535
US$ leveraged ratio
0.64
6.57
13.56
3.59
195.81
Cost per person (US$) – partner grant cost only
154.68
3.74
3.61
9.29
1.62
Average loan size (US$)
603
2,822
278
837
1,233
Average repayment rate (%)
83
-
90
99
99
Source: Water.org
Image: Water.org