Impact-Linked Fund for Water, Sanitation and Hygiene (ILF for WASH)
Building on the promising results of the SIINC for WASH programme, Aqua for All and Roots of Impact are proud to continue their partnership by launching the Impact-Linked Fund for WASH (ILF for WASH).
The Impact-Linked Fund for Water, Sanitation and Hygiene (ILF for WASH) aims at enabling pioneering impact enterprises in Africa, Asia, and the Middle East to gain access to suitable and innovative finance. By using Impact-Linked Finance and providing “better terms for better impact”, these WASH enterprises get equipped to grow their businesses, expand the reach of their solutions, and create impact at scale. This will ultimately contribute to achieving Sustainable Development Goal 6, universal access to clean water and sanitation.
The water and sanitation sector has a significant financial gap, leaving innovative solutions behind and vulnerable populations unserved. ILF for WASH can fill this gap by providing acceleration support and catalytic financing to mobilise private investments and scale impact enterprises in Asia, Africa and the Middle East.
From Social Impact Incentives to Impact-Linked Finance
ILF for WASH builds upon the learnings and results of Social Impact Incentives for Water, Sanitation and Hygiene for WASH (SIINC for WASH), a pilot programme launched in August 2020.
As part of SIINC for WASH, three enterprises successfully went through the selection process to receive time-limited Social Impact Incentives (SIINC): aQysta, ATEC*, and KWSH. SIINC is part of the suite of Impact-Linked Finance instruments and provides payments for the impact achieved. This additional revenue stream enables enterprises to improve their profitability, attract investments and accelerate scaling. In the long run, this leverages their potential to reach self-sustainability and profitability.
While the focus of ILF for WASH continues to be on SIINC, other Impact-Linked Finance instruments such as Impact-Linked Revenue-Share Agreements will be considered as part of the toolbox. Additionally, ILF for WASH provides technical assistance that incorporates a two-throng approach to address impact-related challenges identified during the first programme. Firstly, enterprises will be directly supported through an Impact-Linked Finance Readiness Bootcamp. This bootcamp aims at providing targeted support to improve enterprises’ impact measurement and management (IMM) systems. Secondly, specialised Train-the-Trainer programmes will strengthen the capacity of wider ecosystem players and empower service providers to deliver foundational support such as basic training on IMM to enterprises.
Who can apply?
To be eligible, enterprises must:
- be based and/or active in Asia, Africa and/or the Middle East;
- be operational for at least three years;
- be in the process of raising investment(s) of a minimum of EUR 500,000, or have concrete prospects to do so;
- have a well-defined business model and strong revenue model, regardless of the legal form;
- have reached or have short-term plans for financial sustainability (break-even point and profitability projections);
- be impact-driven (priority areas include bottom of the pyramid, gender, and climate).
Are you interested in this innovative Impact-Linked Fund for WASH? Please contact Aqua for All here.
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On Thursday 30 June we organised an informative ‘ILF for WASH’ webinar to learn more about the fund, the key selection criteria, and how the deals are implemented through a case. Find the recording here: