Microfinance allows middle- and lower-income households to invest in desirable sanitation products, so that public funding can be freed up to reach the poorest, according to Water for People (WfP). In a new report , WfP reviews their experiences in piloting various lending models in seven countries: Bolivia, Guatemala, India, Malawi, Peru, Rwanda and Uganda.
The report provides lessons and recommendations for donors wishing to engage in sanitation microfinancing. The four key recommendations are:
- Think like a business
- Support lending institutions based on the microfinance climate and capacity needs
- Build an autonomous sanitation microfinance market
- Track progress and lessons
The report is part of WfP’s Sanitation as a Business (SaaB) program, funded by a Gates Foundation grant.
Read the full report
 Chatterley, C. et al, 2013. Microfinance as a potential catalyst for improved sanitation : a synthesis of Water For People’s sanitation lending experiences in seven countries. Denver, CO,USA: Water For People. Available at: <http://www.waterforpeople.org/assets/files/sanitation-microfinance.pdf>
Source: Christie Chatterley et al., Microfinance as a potential cataylst for improved sanitation, Water for People, 27 Dec 2013