Access to safe water, sanitation, and hygiene (WASH) remains one of the most pressing challenges in underserved regions. Yet, across Sub-Saharan Africa and Asia, a new approach to financing is proving that meaningful, scalable impact is not only possible — it’s already happening.
Our latest knowledge report “ILF for WASH” explores how Impact-Linked Finance (ILF) is helping safe water, sanitation, and hygiene (WASH) enterprises grow, attract investment, and deliver additional social and environmental impact.
The results presented in this report reflect progress up to the end of 2025. As of Q1 2026, the Impact-Linked Fund for WASH programme has been fully integrated into Aqua for All’s broader Impact-Linked Finance offering, marking the next step in scaling this innovative approach.
From pilot to proven approach
Our Impact-Linked Finance offering for WASH enterprises builds on the success of the Social Impact Incentives (SIINC) pilot, launched in 2020, and the Impact-Linked Fund for WASH programme, started in 2022. What began as an experiment now combines results-based financing with tailored technical assistance.
Developed and implemented by Aqua for All in partnership with Roots of Impact, this innovative approach reflects a simple but powerful idea: when financial incentives are directly tied to impact, enterprises are better equipped to scale sustainably.
A flexible, enterprise-centred model
One of the defining strengths of our ILF offering is its flexibility. There is no one-size-fits-all solution for supporting enterprises at different growth stages. Therefore, we offer tailored ILF instruments, including:
- Social Impact Incentives (SIINC)
- Impact-Linked Loans (ILL)
- Simple Agreements for Future Impact (SAFI)
These are complemented by technical assistance programmes that help enterprises strengthen investment readiness and improve impact measurement and management.
Real results, tangible impact
Since 2020, six enterprises have received ILF to expand their reach and impact, and 25 enterprises have benefited from tailored technical assistance.
Supported enterprises have expanded their services and empowered women and local entrepreneurs through franchise and sales networks, creating ripple effects within communities.
This has contributed to meaningful progress on key global goals, including improved access to clean water and sanitation (SDG 6), greater gender equality through inclusive business models (SDG 5), and increased employment and economic growth (SDG 8).
A catalytic effect on investment
ILF helps mobilise additional capital. For every €1 of incentives provided, €7 in external investment has been unlocked.
This 1:7 leverage ratio highlights the catalytic power of ILF: targeted funding crowds in significantly larger investments.
Key lessons shaping the future
Our ILF journey has generated valuable insights:
- Flexibility is essential: financing structures must adapt to dynamic markets
- Different needs require different tools: matching financial instruments to enterprise readiness is critical
- Impact data matters: incentives can drive improvements in measurement systems
- Technical assistance works: building a pipeline of investment-ready enterprises
- Autonomy supports performance: enterprises perform best when they retain control over their strategy and customer targeting
Looking ahead
The journey is still unfolding, but one thing is clear: Impact-Linked Finance is a practical, proven tool for driving sustainable growth and delivering real impact where it matters most.
Read the full report.