Sector Finance Strategies: Worth the Effort?
CONNECT Finance Session 7
Bringing it together:
S
ector
F
inance
S
trategies, is it worth the
effort?
Intro, opening, moderation and closing
Angela Huston
Head of strategy and
adaptation
IRC
Stef Smits
Co-Director Growth
Hub
IRC
Catarina Fonseca
IRC Associate
Pulsing Tide Director
Bénigne Ishimwe
WASH Governance
expert
IRC
The development of
finance strategies
Insights from supporting finance strategies processes
Dr. Catarina Fonseca, IRC Associate
Outline
1.
What is a finance strategy
2.
Key elements of a finance strategy
3.
Insights from a set of strategies (content and process)
What is a finance strategy
•
A
strategic document
, developed under
government leadership
in consultation
with relevant stakeholders, that aims to
ensure the financial sustainability of the
WASH sector.
•
The
process
of developing a WASH
finance strategy
promotes policy
dialogue
and facilitates consensus
building, based on a strong
analytical base.
Key elements of a finance strategy
Insights from a set of strategies –
content (1/2)
1.
Process of developing finance strategies captures more funding flows
to the sector than existing studies
2.
Options that provide (and unlock) most funds are 1)reducing non
revenue water and increasing billing followed by 2) tariff reforms and
3) optimising public finance (more for project preparation, utility
reforms, capacity local governments, etc.).
3.
Narrow approach. WASH only. Rarely include wastewater, water
resources protection, flood protection, solid waste. But do include
WASH in health and WASH in education.
Insights from a set of strategies –
content (2/2)
4.
I
ntegrating climate resilience into programme implementation
adds
significant cost, but also open up new source
s
of finance
5.
Critical to understand the fiscal space of the country and limitations
of public financial management systems at local government level
6.
Bring to the financial discussion national public development banks –
which have not been part of finance consultations/discussions in the
sector
Insights from a set of strategies -
process
1.
Can be done within 6 - 12 months.
2.
Depends on existing data (WASH Accounts, SDG6 costing, finance gap calculations,
finance plans). Each country has only some of these.
3.
No need to spend time to get the exact finance gap. We know its there and its big.
Focus on the understanding the 3Ts and the strategies to increase them.
4.
Consultations are easier when all Ministries are involved but formal approvals take
time
5.
Unclarity on who is the leading agency/institution when complex issues require
multisectoral approaches (ie. climate funding, water security, food security)
6.
Finance strategies need to remain a live document. Unclear how they are part of
ongoing sector coordination and review processes moving forward.
All Systems Connect 2023 is made possible thanks to the generous support of our partners
including the World Health Organization and :
Moses Ssonko
Senior Economist
Ministry of Finance
Uganda
Max John Wengawenga
Deputy Director Policy and Planning
Ministry of Water and Sanitation
Malawi
Panel 1: National WASH Finance Strategies:
countries experiences
H
.
E
.
Semereta Sewasew
State Minister Finance
Ethiopia
H.E. Mr. Roberto Carlos
Ramirez Alvarenga
Vice Minister of Finance
Honduras
Joel Kolker
Global Lead Water and
Finance
World Bank Group
Delia Sanchez
Environmental Economist
Organisation for Economic
Co-operation and Development
Rémi Kaupp
Executive Director
Container Based Sanitation
Alliance
Panel 2: National WASH Finance Strategies:
perspectives
Janet Atim
Principal
Water and
Sanitation Engineer
African Development
Bank
Ghana
Explore the development of finance strategies in the WASH sector through insights and key elements discussed in a recent session. From understanding the importance of strategic documents to capturing more funding flows, the session highlighted critical considerations for financial sustainability. Discover the benefits of integrating climate resilience and navigating fiscal limitations to enhance financial discussions within the sector.
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Presentation Transcript
CONNECT Finance Session 7 Bringing it together: Sector Finance Strategies, is it worth the effort?
Intro, opening, moderation and closing Stef Smits Co-Director Growth Hub IRC Angela Huston Head of strategy and adaptation IRC B nigne Ishimwe WASH Governance expert IRC Catarina Fonseca IRC Associate Pulsing Tide Director
Dr. Catarina Fonseca, IRC Associate The development of finance strategies Insights from supporting finance strategies processes
Outline 1. 2. Key elements of a finance strategy 3. Insights from a set of strategies (content and process) What is a finance strategy
What is a finance strategy A strategic document, developed under government leadership in consultation with relevant stakeholders, that aims to ensure the financial sustainability of the WASH sector. The process of developing a WASH finance strategy promotes policy dialogue and facilitates consensus building, based on a strong analytical base.
Insights from a set of strategies content (1/2) 1. Process of developing finance strategies captures more funding flows to the sector than existing studies 2. Options that provide (and unlock) most funds are 1)reducing non revenue water and increasing billing followed by 2) tariff reforms and 3) optimising public finance (more for project preparation, utility reforms, capacity local governments, etc.). 3. Narrow approach. WASH only. Rarely include wastewater, water resources protection, flood protection, solid waste. But do include WASH in health and WASH in education.
Insights from a set of strategies content (2/2) 4. Integrating climate resilience into programme implementation adds significant cost, but also open up new sources of finance 5. Critical to understand the fiscal space of the country and limitations of public financial management systems at local government level 6. Bring to the financial discussion national public development banks which have not been part of finance consultations/discussions in the sector
Insights from a set of strategies - process 1. Can be done within 6 - 12 months. 2. Depends on existing data (WASH Accounts, SDG6 costing, finance gap calculations, finance plans). Each country has only some of these. 3. No need to spend time to get the exact finance gap. We know its there and its big. Focus on the understanding the 3Ts and the strategies to increase them. 4. Consultations are easier when all Ministries are involved but formal approvals take time 5. Unclarity on who is the leading agency/institution when complex issues require multisectoral approaches (ie. climate funding, water security, food security) 6. Finance strategies need to remain a live document. Unclear how they are part of ongoing sector coordination and review processes moving forward.
All Systems Connect 2023 is made possible thanks to the generous support of our partners including the World Health Organization and :
Panel 1: National WASH Finance Strategies: countries experiences H.E. Mr. Roberto Carlos Ramirez Alvarenga Vice Minister of Finance Honduras H.E. Semereta Sewasew State Minister Finance Ethiopia Max John Wengawenga Deputy Director Policy and Planning Ministry of Water and Sanitation Malawi Moses Ssonko Senior Economist Ministry of Finance Uganda
Panel 2: National WASH Finance Strategies: perspectives Delia Sanchez Joel Kolker Global Lead Water and Finance World Bank Group Environmental Economist Organisation for Economic Co-operation and Development R mi Kaupp Executive Director Container Based Sanitation Alliance Janet Atim Principal Water and Sanitation Engineer African Development Bank Ghana
