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An assessment of sanitation financing options for enterprises and households

This learning note summarizes the findings of a study undertaken of the financing approaches used under the USAID Transform WASH programme in Ethiopia, which was conducted to better understand their performance and how they compared to other viable approaches. The consumer financing mechanism implemented by Transform WASH is based on the Village Savings and Loan Association (VSLA) approach. The programme also conducted a pilot project, which supported Microfinance Institutions (MFIs) and Savings and Credit Cooperatives (SACCOs) to develop and test WASH loan products for households. The second part of the study included a review of other examples of sanitation financing approaches, such as the Iqub model, a widely used and accepted indigenous Ethiopian financing mechanism. The learning notes concludes with recommend ways to increase access to affordable financing for both consumers and businesses, and to strengthen the approaches of Transform WASH. One important finding was that all of the consumer financing programs reviewed in the study tend to exclude the lowest socioeconomic groups.

TitleAn assessment of sanitation financing options for enterprises and households
Publication TypeBriefing Note
Year of Publication2020
AuthorsGutema, G., Osterwalder, L.
Secondary TitleUSAID Transform WASH learning note
Pagination15 p. : 2 boxes, 2 fig.
Date Published10/2020
PublisherUSAID Transform WASH and IRC WASH
Place PublishedAddis Ababa, Ethiopia
Publication LanguageEnglish
Abstract

This learning note summarizes the findings of a study undertaken of the financing approaches used under the USAID Transform WASH programme in Ethiopia, which was conducted to better understand their performance and how they compared to other viable approaches. The consumer financing mechanism implemented by Transform WASH is based on the Village Savings and Loan Association (VSLA) approach. The programme also conducted a pilot project, which supported Microfinance Institutions (MFIs) and Savings and Credit Cooperatives (SACCOs) to develop and test WASH loan products for households. The second part of the study included a review of other examples of sanitation financing approaches, such as the Iqub model, a widely used and accepted indigenous Ethiopian financing mechanism. The learning notes concludes with recommend ways to increase access to affordable financing for both consumers and businesses, and to strengthen the approaches of Transform WASH. One important finding was that all of the consumer financing programs reviewed in the study tend to exclude the lowest socioeconomic groups.

Notes

Includes 4 ref.

This is an ongoing series of blogs and publications by IRC under the USAID Transform WASH project. Please click here for all IRC's work on this project.

USAID Transform WASH aims to improve water, sanitation and hygiene (WASH) outcomes in Ethiopia by increasing market access to and sustained use of a broader spectrum of affordable WASH products and services, with a substantial focus on sanitation.

Transform WASH achieves this by transforming the market for low-cost quality WASH products and services: stimulating demand at the community level, strengthening supply chains, and improving the enabling environment for a vibrant private market.

USAID Transform WASH is a USAID-funded activity implemented by PSI in collaboration with SNV, Plan International, and IRC WASH. The consortium is working closely with government agencies, including the Ministry of Health, the Ministry of Water, Irrigation and Electricity, the One WASH National Program, and regional and sub-regional governments.

Citation Key87241

Disclaimer

The copyright of the documents on this site remains with the original publishers. The documents may therefore not be redistributed commercially without the permission of the original publishers.