Across Ethiopia, demand for safe water and sanitation continues to grow, but public funding alone cannot meet the scale of investment required. Building a financially sustainable water sector means creating the conditions for commercial finance to flow alongside public and private capital.
Aqua for All, in partnership with the Conrad N. Hilton Foundation, is expanding their long-term strategic partnership of the Advancing Water and Sanitation Finance in Ethiopia and Beyond programme.
Over the past several years, the programme has shown that blended finance and technical assistance can unlock commercial finance for households and water and sanitation SMEs. Additionally, the programme’s initial implementation provided wholesale financing to microfinance institutions (MFIs) to expand their water and sanitation lending portfolios. As a result, participating financial institutions are better equipped to develop and deliver dedicated water and sanitation finance products.
Scaling a proven approach of blended finance
Building on these achievements, the continuation of the programme will strengthen the financial infrastructure that enables investment in Ethiopia’s water and sanitation sector.
Alongside continued support for households and water and sanitation enterprises at different stages of growth, the programme will engage commercial banks, Saving and Credit Cooperative Societies (SACCOs) and other financial institutions to pilot innovative blended finance solutions. These financing instruments are designed to mobilise private capital for water utilities and the wider water and sanitation sector.
Over the next four years, the programme aims to:
- Expand partnerships with more than 28 financial institutions across Ethiopia.
- Mobilise significantly more private capital for the water and sanitation sector through blended finance instruments, including various de-risking mechanisms.
- Support approximately 900 water and sanitation SMEs to access finance and become investment-ready through smart, results-based grants.
- Pilot innovative financing models for water utilities to improve sustainable service delivery.
- Provide targeted support to selected growth-stage and emerging large water and sanitation enterprises.
- Strengthen climate-smart and gender-responsive water and sanitation finance products.
- Improve access to safe water and sanitation for more than 134,000 people.
- Generate evidence to support the development of a national water and sanitation credit line and create a model that can be replicated across East Africa.
By connecting financial institutions, enterprises, water utilities and policymakers, the collaboration represents an important step towards establishing water and sanitation finance as a sustainable and commercially viable asset class in Ethiopia.
Creating the conditions for lasting investment
This initiative reflects Aqua for All’s and the Conrad N. Hilton Foundation’s shared commitment to leveraging private capital, fostering innovation and strengthening market-based solutions that accelerate universal access to safe water and sanitation while contributing to the achievement of Sustainable Development Goal 6.
The programme will run from June 2026 to May 2030. Throughout this period, Aqua for All and the Conrad N. Hilton Foundation will work closely with financial institutions, water and sanitation enterprises, federal government partners, the Amhara Regional Government and its sector institutions, development partners and other key stakeholders to scale innovative financing solutions.
Ultimately, the ambition in the region moves beyond a single programme. By strengthening Ethiopia’s water and sanitation finance ecosystem, mobilising greater commercial investment, and by expanding access to safe and climate-resilient water and sanitation services, the continued collaboration seeks to generate evidence that can inform policy and support replication across East Africa.
