Impact-Linked Fund for Water, Sanitation and Hygiene (ILF for WASH)
The Impact-Linked Fund for Water Sanitation and Hygiene (ILF for WASH) is an innovative finance programme. It offers a suite of Impact-Linked Finance (results-based) solutions to water and sanitation enterprises in Africa, Asia, and the Middle East looking to scale and increase their impact.
ILF for WASH provides acceleration support and catalytic financing that contribute to mobilising private investments and scaling water and sanitation enterprises sustainably. This will ultimately contribute to achieving SDG 6, universal access to clean water and sanitation.
Financed by Aqua for All, ILF for WASH is developed and implemented in partnership with Roots of Impact. The programme builds on the learnings and promising results piloted by the SIINC for WASH programme, launched in mid-2020. SIINC for WASH is also financed by Aqua for All and co-designed and implemented in partnership with Roots of Impact.
Impact-Linked Finance solutions for WASH
Our Impact-Linked Finance solutions are designed to offer “better terms for better impact”. This means that both the instruments’ conditions and results’ metrics respond to the needs and situation of the impact enterprise. The enterprise will get equipped to grow and expand to undeserved communities, attract investments, and create impact at scale.
ILF for WASH provides funding and support through these Impact-Linked Finance instruments:
- Social Impact Incentives (SIINC)
- Impact-Linked Loans are uncollateralised SME loans whose interest rate and principal repayment can be reduced depending on the borrower’s impact achieved.
- Technical assistance uses a two-prong approach to address the variety of the impact-related challenges faced by water and sanitation enterprises. Firstly, Impact-Linked Finance Readiness Bootcamp providing targeted support to improve enterprises’ impact measurement and management (IMM) systems. Secondly, the Train-the-Trainer programme will strengthen the capacity of service providers to deliver Foundational Support, such as basic training on IMM to enterprises.
As the programme evolves, additional solutions will be integrated into this suite, expanding its capacity to drive impactful outcomes in the WASH sector.
Who can participate in ILF for WASH?
Eligible water and sanitation enterprises must meet these conditions:
- Being based and/or active in Asia, Africa and/or the Middle East;
- Being operational for at least three years;
- Having a well-defined business model and strong revenue model, regardless of the legal form;
- Having reached – or having short-term plans for – financial sustainability (break-even point and profitability projections);
- Being impact-driven (priority areas: low-income populations, gender, and climate).
- Meeting the extra requirements of each specific Impact-Linked Finance solutions offered by ILF for WASH.
Not sure ILF is the right fit for your enterprise? – Try our ILF matching tool to evaluate how well an ILF transaction aligns with your business needs:
Do you have questions or are you interested in participating In ILF for WASH? Please contact us at ILF@aquaforall.org