Leveraging Finance Intermediaries for Sanitation Sector Growth
USAID's Water, Sanitation, and Hygiene Finance 2 (WASH-FIN 2) aims to mobilize $375 million by 2027 for climate-resilient water and sanitation services in Kenya, India, and Ghana. The project focuses on strengthening governance, improving service provider performance, and expanding partnerships. Technical assistance is provided to address challenges in the sanitation sector, such as weak management systems and poor financial management. WASH-FIN works on improving the creditworthiness and technical outlook of sanitation service providers through financial assessments, capacity building, and transaction advisory services.
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Barbara Kazimbaya Senkwe: USAID s Water, Sanitation, and Hygiene Finance 2 (WASH-FIN 2) The role of finance intermediaries Blended finance for sanitation
USAIDs Water, Sanitation, and Hygiene Finance 2 Activity Objectives Goal: Leverage partnerships to mobilize $375 million for climate- resilient water and sanitation services by 2027 Strengthen governance Improve performance of service providers Focus Countries: Kenya, India, and Ghana. Planned expansion to more Mobilize finance Advance global learning and partnerships
WASH-FINs Support for Sanitation Service Provider (SSP) Growth in Senegal and Kenya
Factors Necessitating Technical Assistance Intermediation Enabling Environment Factors Widespread informality of the SSPs (over 80% in Senegal) Public focus on sewerage and limited focus on onsite sanitation Technical Factors Weak management systems Use of old exhauster trucks Financial Factors Poor financial management and low creditworthiness Financial institutions unfamiliarity with the sanitation sector Water, Sanitation, and Hygiene Finance 2: The role of finance intermediaries - blended finance for sanitation
WASH-FINs support to SSPs Improving Creditworthiness and Technical and Financial Outlook Technical Project preparation Financial assessments and capacity building Specific financial product for truck fleet renewal (PARC) Transaction Advisory Packaging potential projects in an investor friendly manner Transaction structuring and financial negotiations Water, Sanitation, and Hygiene Finance 2: The role of finance intermediaries - blended finance for sanitation
Entities Supported Financial Institutions: Sanitation Service Providers:
WASH-FIN Intermediation Results
Results in Senegal and Kenya WASH Market assessments and segmentation SSPs and Banks Ready for Transactions Technical diagnostics and Financial Landscape Financial models and financing teasers developed $12.24 million raised and $20 million expected to be raised for PARC Coaching and individualized capacity building support Financial product for truck fleet replacement (PARC) prepared Financial institutions interested to engage with SSPs Water, Sanitation, and Hygiene Finance 2: The role of finance intermediaries - blended finance for sanitation
Requirements for Successful Technical Assistance Intermediation Funding opportunities for sanitation services and technologies Enabling policy environment critical for TA and service expansion Private SSPs willingness to engage the public sector Government prioritization of onsite sanitation Collaborative approaches to maximize competitive advantages Clear partnership frameworks between the public and private sector Water, Sanitation, and Hygiene Finance 2: The role of finance intermediaries - blended finance for sanitation
Resources and more info Barbara Kazimbaya Senkwe, Deputy COP USAID s Water, Sanitation, and Hygiene Finance 2 (WASH-FIN 2) Barbara.Senkwe@tetratech.com Read more about PARC at GlobalWaters.org The PARC Program Blended Finance to Upgrade Senegal s Private Sanitation Exhauster Truck Fleet Find WASH-FIN 2 online at Globalwaters.org/wash-fin-2
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