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.
- We partnered with Family Bank in July 2023 to increase access to credit for community-based water serving providers in Kenya.
- In March 2023, we launched the Water Access Acceleration Fund (W2AF). This is the first private equity fund for safe drinking water. Besides Aqua for All, investors include Danone, BNP Paribas, U.S. International Development Finance Corporation (DFC), the Danish development finance institution IFU, Norfund, and the U.S. Agency for International Development. The fund’s first investment in Rite Water will secure safe drinking water to communities living in areas with polluted water sources.
- In June 2023, we launched a partnership with Oikocredit to support water and sanitation financing provided by financial institutions in Africa and Asia.
- We partnered with the African Guarantee Fund to increase de-risking opportunities for the water and sanitation sector in Africa.
- In June 2023, we launched The Challenge Fund with Family Bank, Sidian Bank and private sector service providers, a pioneering blended finance structure to accelerate access to clean and reliable water supply in peri-urban and rural areas in Kenya.
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.
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 . 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. Since May 2021, Aqua for All leads the e-MPF WASH Action Group (see box).