Issue 128 January 3, 2014 | Focus on Microfinance
Many thanks to Blake McKinlay from iDE for suggesting the topic for this issue and for sharing an interesting study in Cambodia on determining the impact microfinance has on the uptake of latrines. Other resources include a just-published Water for the People review of its microfinance experiences in seven countries, a SHARE blog post on microfinance issues, and country studies from Ghana, Kenya, among others.
Understanding Willingness to Pay for Sanitary Latrines in Rural Cambodia: Findings from Four Field Experiments of iDE Cambodia’s Sanitation Marketing Program, 2013. N Shah, IDinsight. (Policy Brief) | (Complete Report) |
Given the low willingness to pay for latrines with cash, efforts to sell latrines at market price without any financing mechanism will lead to continued low penetration. The major implication of this study is that offering microfinance loans for latrines will dramatically increase uptake of latrines, while also making distribution significantly cheaper per latrine sold. Large-scale efforts to offer financing packages for latrines should be aggressively pursued in rural Cambodia and have the potential to increase latrine coverage from the current national rural level of 20 percent to 60 percent.
Evaluating the Potential of Microfinance for Sanitation in Tanzania, 2013. S Trémolet, SHARE. (Link)
Microfinance could be used in two main ways to promote access to sustainable sanitation services: by enabling households to spread out the costs of investing in household sanitation solutions (such as latrines and septic tanks), thereby improving the affordability of such investments and by supporting the development of a broad range of sanitation service providers, including masons, communal toilet block operators, or pit latrine emptiers.
Improved Sanitation and its Impact on Children: An Exploration of Sanergy, 2013. H Esper. (Link)
This child impact case study examines the positive impacts of improved sanitation on households and communities, using Sanergy’s experience in Kenya. This for-profit enterprise operates franchises in Nairobi’s slums and provides modular sanitation facilities and entrepreneurial training.
Market-Based Financing: WSP/RWSN Webinar Series, 2013. (Webinar) | (All Webinars) |
This webinar explores experiences with using local banks to provide commercial or semi-commercial loans for the construction, expansion, and major rehabilitation of rural and small town water schemes, using cases from Kenya and Uganda.
Microfinance as a Potential Catalyst for Improved Sanitation: A Synthesis of Water for People’s Sanitation Lending Experiences in Seven Countries, 2013. C Chatterley, Water For People. (Link)
To learn how best to facilitate sanitation microfinance, Water for People has been piloting various lending models with diverse partners in seven countries (Bolivia, Guatemala, India, Malawi, Peru, Rwanda, and Uganda). This report aims to synthesize these experiences to inform general guidance for initiating and improving programs, providing lessons learned and recommendations.