While 200 million Africans do not have a toilet, the Impact-Linked Fund for WASH (ILF for WASH) initiative implemented by the Dutch organization Aqua for All and Roots of Impact, an investor based in Germany and South Africa, will increase investment in the water and sanitation sector in Africa. It is in the framework of a call for projects that closes on July 10, 2022.
Between water stress and lack of hygiene infrastructure, the African continent needs more than ever investment in the water and sanitation sector. With this in mind, the Dutch organization Aqua for All and Roots of Impact, an impact fund manager based in Germany and South Africa, are launching the Impact-Linked Fund for Wash (ILF for Wash). The initiative will enable the financing of impact projects in Asia, Africa and the Middle East, as part of the implementation of the United Nations Sustainable Development Goal (SDG) 6 on universal access to safe drinking water and sanitation.
“By using Impact-Linked Finance, these Wash (water, sanitation, and hygiene) companies are equipped to grow their businesses, expand the reach of their solutions, and create impact at scale. This additional revenue stream allows companies to improve profitability, attract investment, and accelerate scale. In the long run, this leverages their potential to achieve self-sufficiency and profitability,” Aqua for All points out.
Wash startups and small and medium-sized enterprises (SMEs) are invited to submit applications by July 10, 2022. However, they will need to demonstrate a minimum investment of 500,000 euros. The ILF for Wash was launched in 2020 with the goal of raising $2 billion by 2025 to address water stress and lack of hygiene infrastructure in several regions.
Sanitation remains a concern in Africa because the proliferation of untreated sewage sludge in the environment exposes 1.5 billion people to diarrhea, malaria and neglected tropical diseases (NTDs), according to the World Health Organization (WHO). It is in this context that the African Ministers’ Council on Water (AMCOW) has established the African Sanitation Policy Guidelines (ASPG) for 2021.
For more information on the call for projects, click here.