AFRICA – WaterEquity, the first asset manager exclusively focused on water and sanitation, has raised US$153 million third impact investment fund, the Global Access Fund, to increase water access across Africa.
The Fund will invest equity capital from institutional investors, foundations, impact investors, and donor-advised funds alongside US$100 million of debt capital from the U.S. International Development Finance Corporation (DFC).
Investments will target sustainable returns with high credit quality and are organized around financial inclusion, gender-lens investing, and access to safe water or sanitation.
“It is deeply gratifying to see the enthusiasm and commitment of participants in our third fund.
“It illustrates that our ability to deliver true impact, amplified by the support of DFC, is a compelling offering for impact investors,” said Paul O’Connell, President of WaterEquity.
WaterEquity’s Global Access Fund will address the global water and sanitation crisis in emerging markets by providing capital to financial institutions for water and sanitation microloans.
These microloans enable low-income consumers to install water and sanitation solutions, such as water connections and toilets, within their own homes.
This directly addresses Sustainable Development Goal 6—to ensure the availability and sustainable management of water and sanitation for all.
It also advances other development goals leading to improved health, economic security, gender equality, and climate resilience.
Over its seven-year term, the Fund aims to reach 5 million people with improved access to water and sanitation across Asia, Latin America, and Africa.100% of those targeted will be low-income families and 60% will be women.
“Globally, 1 in 10 people do not have access to safe water, and 1 in 4 lack access to a toilet, with women and girls, disproportionally affected,” says Genevieve Edens, WaterEquity’s Director of Impact & ESG.
“The global water crisis is an enormous overlooked market opportunity that can provide true, the undiluted impact for investors focused on ESG.”
According to the World Bank, there is a US$1 trillion market opportunity for providing water and sanitation services to all people worldwide by 2030.
To address this market opportunity, WaterEquity will continue to scale its investments across the water and sanitation sector, from household-level solutions to climate-resilient water and sanitation infrastructure.
AfDB commits US$125.3m to expand water resources in Tanzania
Meanwhile, the Board of Directors of the African Development Fund has approved a US$125.3 million loan to finance the first phase of the Dodoma Resilient and Sustainable Water Development and Sanitation Program in Tanzania.
Specifically, the loan from the African Development Fund, the concessional window of the African Development Bank Group, will cover the construction of a dam and water treatment plant to address supply challenges in Dodoma City and the towns of Bahi, Chemba and Chamwino.
The program aims to improve water supply for multi-purpose use by developing water resources for Dodoma City and the three towns. It is expected to enhance access to potable water for two million people and provide better sanitation services for about 1.5 million people by 2051.
It will also ensure the sustainability of the water resources with related improved community management by catchment protection and management and build resilience against climate change and variability.
AfDB is financing 94% of the US$132.9 million estimated cost of the first phase with the Tanzanian government providing counterpart funding of the remaining 6%.
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