Our innovative and blended finance solutions
We use our funds and expertise to broaden the ecosystem of available investments through:
- Blended finance partnerships
- Results-based incentives models
- Financing carbon credits trajectories
- Promoting impact investments in water and sanitation
Our blended finance partnerships
We deploy our funding as patient, risk-tolerant, flexible and concessionary capital to facilitate and de-risk private investments. Our financial instruments include first and second loss capital, guarantees, technical assistance, results-based funding (pay for success) and design/preparation stage grants.
- In August 2020, we launched a WASH Loan Facility with Sidian Bank. The facility provides working capital to micro, small and medium water and sanitation enterprises in Kenya.
- In September 2021, we launched a WASH Financing Programme with the National Bank of Kenya (NBK). It is aimed at micro, small and medium enterprises (MSMEs and SMEs), including vendors, technology providers, and various WASH suppliers.
Funding results-based incentive models for greater impact
We finance results-based incentives models to scale water and sanitation enterprises and make them investable. These incentives support enterprises improve their profitability while achieving higher impact (gender, environment and social) and offering better services, especially for people on low incomes and living in rural and last-mile areas.
- In August 2020, Aqua for All and Roots of Impact launched the Social Impact Incentives for Water, Sanitation and Hygiene (SIINC for WASH) programme. After this successful pilot, we continued our partnership by launching the Impact-Linked Fund for WASH (ILF for WASH).
Climate change mitigation through carbon credits finance
Carbon credits certification helps water and sanitation social enterprises generate additional revenue from greenhouse gas (GHG) emissions avoided. Since 2013, Aqua for All has financed carbon credits trajectories in Ethiopia and India.
Facilitating impact investors’ involvement
Impact investors’ capital allocation in water and sanitation has grown in the last years [1]. However, it is still a relatively new and under-invested sector for private capital with little information available on its risk/return profile.
In 2020, Aqua for All became a member of the European Microfinance Platform (e-MFP) as part of its strategy to proactively promote impact investments in water and sanitation.
[1] https://thegiin.org/research/publication/impinv-survey-2020