We are pleased to announce our four-year partnership with the Swiss Agency for Development and Cooperation (SDC) to advance Sustainable Development Goal 6 (SDG 6) — universal access to safe water and sanitation.
The partnership is closely aligned with SDC’s mission to address critical challenges in the water and sanitation sector and builds on Aqua for All’s extensive expertise in supporting commercially viable solutions to scale and attract private capital.
“Innovative collaboration with the private sector is key to achieving SDG 6. The programme pushes the needle in moving more private capital to water companies, which provide much-needed water and sanitation services to underserved populations in low-income households”. Janine Kuriger, Head of Section Water SDC
“SDC has expanded its portfolio of innovative impact finance over the past few years with a strong focus to drive private impact capital into countries and sectors where the SDG financing gap is biggest. With this new partnership with Aqua for All we are embarking on a transformative journey in the water sector that will pave the way for a new generation of impact capital that will translate into increased water access and affordable WASH solutions for people in our partner countries”. Luca Etter, Senior Policy Advisor SDC
Enabling access and driving impact
In Least Developed Countries (LDCs) and Lower-Middle-Income Countries (LMICs), small and medium enterprises (SMEs) provide water and sanitation services to households and communities not reached by public services. However, these SMEs face significant challenges to scaling up, including limited resources, capacity constraints, and restricted access to finance. Public funding alone cannot meet the overwhelming demand for water and sanitation solutions, while private capital remains largely out of reach for many SMEs in the sector.
To address these challenges, the SDC – Aqua for All partnership will focus on improving access to private capital for water and sanitation SMEs, with a particular emphasis on LDCs and LMICs. A key feature is its Impact-Linked Finance component, which uses Social Impact Incentives (SIINC). SIINC is an innovative finance mechanism that rewards water and sanitation enterprises for achieving additional positive impact, enabling them to scale their operations, improve their impact monitoring and management systems and serve vulnerable communities.
“Impact-Linked Finance enables WASH enterprises to scale by tying financial support to measurable social outcomes. This results-driven approach enhances accountability and empowers enterprises to tackle water and sanitation challenges with greater efficiency and equity”. Arnaud Alt, Transaction Manager Impact-Linked Fund for WASH at Aqua for All.
In addition, Aqua for All will mobilise private capital using first-loss, technical assistance and results-based financing to support fund managers financing water and sanitations sector enterprises.
“Raising junior capital is challenging for private impact funds, yet it is crucial for attracting senior capital commitments from family offices, DFIs, and institutional investors. Through our partnership with SDC, we can allocate junior capital to more water impact funds, which in turn invest in companies ensuring access to safe, affordable, and reliable water and sanitation.” Aarno Keijzer, Lead Impact Finance at Aqua for All.
Transformative goals
With a budget of €19.2 million, the partnership aims to reach over one million people through leveraged financing while achieving significant, lasting impact.
The partnership comprises a series of targeted activities designed to strengthen the water and sanitation sector, including enabling water and sanitation SMEs to deliver measurable social and environmental impact through SIINCs and providing tailored technical assistance alongside these transactions.
In addition, it will catalyse private investments by providing first-loss to investment funds, results-based financing and offer technical assistance. Lessons learned will be disseminated to a wider audience through participation in international knowledge sharing events.
Impact-Linked Finance
The launch of the SIINC application call, now officially concluded, marks a significant milestone in our partnership. SIINC is a proven Impact-Linked Finance instrument designed to reward enterprises that deliver positive social and climate outcomes. It provides selected enterprises with Impact- Linked funding support and tailored technical assistance.
SIINC transactions are customised to meet the needs of the participating enterprises. In addition to funding, participants will receive expert guidance to strengthen their operations and increase their impact, ensuring sustainable growth.