An assessment of sanitation financing options for enterprises and households. Addis Ababa.

September 2020

This is a learning note from the implementation of the USAID Transform WASH programme in Addis Ababa that assessed the performance of sanitation financing options. The project incorporated the Village Savings and Loan Association (VSLA), in addition to support microfinance institutions (MFI) and Savings and Credit Cooperatives (SACCOs) to develop and test household water, sanitation, and hygiene (WASH) financing approaches in context.

The study also presents results from a review of existing sanitation financing approaches and recommends ways that similar contexts can use these to increase affordable financing access for both households and businesses, while ensuring no one is left behind, especially the lowest socioeconomic groups that face the worst forms of exclusion from most consumer financing programs.

Who is this for and why?
Government and development partners who focus on market driven access to affordable and sustainable WASH products and services should utilize this resource. It was developed in a global south context and could be adapted to similar contexts by implementers and practitioners.

The cost of WASH products and services is a barrier to inclusive and sustainable WASH achievements; strategies for low-cost good quality WASH products and services can bridge that gap. Such strategies are urgently required if demand for WASH products and services is to be stimulated and sustained, especially at the community level where the biggest gaps remain. Strong supply chains and enabling environments for vibrant private markets are often overlooked when designing WASH interventions, and governments and development partners can use this resource to ensure that the same is taken into consideration. When the spectrum of contextualized WASH services and products is broadened, it will almost guarantee increased uptake and more sustainable change in the communities served.

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