Innovative Financing
Government budgets and philanthropy — traditional sources of funding for water and sanitation in most developing countries — are not sufficient to meet the needs of millions of unserved people. From remote rural villages to peri-urban shanty towns, poor communities lack safe and affordable water and sanitation. These communities need investments that may be too large for microfinance institutions and too small for large banks and the private sector.
Innovative programs and products are needed to reach local communities and entrepreneurs who are excluded from mainstream financing and banking. When local businesses and communities make investments, they are more sustainable because they tap into local innovation and talents. Moreover, these investments can be managed, either directly by communities or by local entrepreneurs who take charge of routine operation and maintenance. They can be replicated and scaled-up to reach millions, far more easily than grant-driven approaches and projects that are completely reliant on subsidies.
Working with entrepreneurs, financial institutions, governments and local organizations, GWC will identify the barriers and opportunities for making community-based investments. We will fund scalable projects using market-based instruments, including loans and guarantees, and support entrepreneurs by linking them with technical advice and new funding sources.
GWC believes that there are many solutions to the water and sanitation crisis, the challenge is to find the right ones for each community. By sharing our experiences widely we hope to integrate innovative approaches into mainstream development, triggering a global movement to ensure universal access to safe water and sanitation.