Facilitating Access to Finance for Household Investment in Sanitation in Bangladesh, August 2016. World Bank.
Approach to Blended Finance: The provision of an output-based aid (OBA) subsidy to microfinance institutions (MFIs) in Bangladesh is used to help MFIs develop sanitation products and extend their reach to poorer households.
Microfinance (the provision of financial services to low-income people) is emerging as a viable avenue to facilitate increased access to finance for households to water and sanitation products, and for small-scale water service providers’ business development.
OBA is a form of results-based financing where subsidies are paid to service providers based on verification of pre-agreed water and sanitation project targets defined during project design, thereby offering a strong incentive for the delivery of results.
Combining an OBA subsidy with a microfinance loan helps reduce households’ cash constraints by spreading repayment over time, and makes investment in improved sanitation more affordable overall.
Achieving universal access to water and sanitation by 2030 – how can blended finance help? | Source: World Bank Water Blog, August 29, 2016 |
An excerpt: What is “blended finance”?
OECD refers to blended finance as ‘the strategic use of development finance and philanthropic funds to mobilize private capital flows to emerging and frontier markets’. Blended finance in the water sector has the potential of mobilizing private sector financing for credit-worthy or close to credit-worthy investments. This would allow reallocating public funds to other areas where public subsidies are likely to be needed.
Commercial finance usually brings requirements for greater investment discipline and transparency, which in turn could support improved efficiency in the sector, an objective for most water sector reform efforts around the world.
Domestic commercial finance in particular can be mobilized in local currency, which reduces the foreign exchange risk and can bring down transaction costs, particularly for smaller scale investments to improve efficiency that can generate rapid returns (such as replacing meters or fixing leaks).
Blended finance has traditionally been used as a tool to stimulate interest from the commercial financial sector, with the use of concessional finance then tapering off over time to avoid distorting markets. Given the embedded distortions in the WSS sector in developing countries, where financing is predominantly based on subsidized public funds, it will be necessary to move towards mobilizing more commercial funds over time. Blended finance can be a stepping-stone in that transition.
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Lack of access to sanitation cost the global economy US$222.9 billion in 2015, up from US$182.5 billion in 2010, a rise of 22% in just five years, according to a new report released on 25 August 2016 by LIXIL Group Corporation (“LIXIL Group”), a global leader in housing and building materials, products and services.
The true cost of poor sanitation, published in collaboration with WaterAid and Oxford Economics, which conducted economic modeling to develop up-to-date estimations of the global cost of poor sanitation, brings to light the high economic burden in low-income and lower-middle income countries.
More than half (55%) of all costs of poor sanitation are a consequence of premature deaths, rising to 75% in Africa. A further quarter are due to treating related diseases, and other costs are related to lower productivity as a result of illnesses and time lost due to lack of access to a private toilet.
Posted in Africa, East Asia & Pacific, Economic Benefits, Europe & Central Asia, Latin America & Caribbean, Middle East & North Africa, Publications, Research, South Asia, Uncategorized
Tagged access to sanitation, health impacts, Lixil, mortality, Oxford Economics, productivity, sanitation costs, WaterAid Japan
Published on Apr 13, 2016
Eco-fuel Africa is a social enterprise determined to eradicate over dependence on wood-fuel in Sub-Saharan Africa by making organic charcoal from agricultural waste. Eco-fuel Africa invented a simple, manual machine that converts agricultural waste into fuel briquettes that burn longer, cleaner and are 20 percent cheaper than wood fuel.
Published on Aug 22, 2016
A scaling up rural sanitation program in Champasak and Sekong provinces was the first government-led Community-Led Total Sanitation (CLTS) and sanitation marketing pilot in Lao PDR. The program has stimulated considerable interest in, and support for, the approach within the National Center for Environmental Health and Water Supply (Nam Saat) of the Ministry of Health.
A short advocacy video, “Latrine Makes Good Business”, aims to encourage potential entrepreneurs to explore the sanitation business. It highlights a market opportunity for an aspirational and affordable sanitation product that provides customers with a one-stop service. The video briefly introduces sanitation marketing interventions that are being undertaken and collaboration with the public sector to facilitate connections between suppliers and consumers.
Transforming Haiti With An Endless Local Resource | National Geographic, Aug 18 2016 |
Everyone poops. But not many people really think about what happens to it. We flush the toilet and it is out of sight and out of mind. Sasha Kramer, on the other hand, has poop on her mind all the time.
Sasha Kramer visits the community of Shada, where SOIL has provided ecological sanitation for ten years. Photograph by James M. Felter
She is a sanitation revolutionary helping to transform human waste into fertile organic compost for agriculture and reforestation in Haiti. “Arguably,” Kramer says, “the most important thing in nature is soil, that’s where all life comes from.”
Kramer is an ecologist, human rights advocate, National Geographic emerging explorer, and the executive director of Sustainable Organic Integrated Livelihoods (SOIL). SOIL primarily focuses on promoting the use of ecological sanitation, a process that uses naturally occurring microbes and heat to convert human waste to rich compost.
Ecological sanitation at SOIL means dry composting toilets, which can be simple and low cost so that it works even in crowded, informal settlement communities where there is little infrastructure.
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These Grampound loos are twinned with another toilet block – in Sierra Leone | Source: West Briton UK, Aug 12 2016 |
Loos in leafy Grampound have been twinned with a toilet block thousands of miles away in former war-torn Sierra Leone.
No we’re not pulling your chain. This is a case of kind-hearted villagers spending their pennies to ensure that families in the poorest countries have their own safe and hygienic loos.
They raised nearly £280 which was able to fund a school toilet block in Manke, Sierra Leone.
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