Making Blended Finance Work for Water and Sanitation

Unlocking Commercial Finance for SDG 6

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Investments in water and sanitation are a prerequisite to deliver on the Sustainable Development Goals (SDGs), in particular on SDG 6 ensuring availability and sustainable management of water and sanitation for all. Blended finance can play an important role in strategically investing development finance to mobilise additional commercial finance needed to fill the current investment gaps. Thus far, however, blended finance has not reached scale in the water and sanitation sector. A greater evidence base is needed to better understand the current applications as well as the potential of blended models in the water and sanitation sector. This publication takes a commercial investment perspective and provides insights into three subsectors: (1) water and sanitation utilities, (2) small-scale off-grid sanitation and (3) multi-purpose water infrastructure and landscape-based approaches. The publication draws out recommendations for policy makers and practitioners to apply and scale innovative blended finance approaches where most appropriate.



Case Studies: Multipurpose water infrastructure and landscape-based approaches

The Development Bank of Southern Africa (DBSA) provided grant funding and technical assistance in the project preparation stage. The Infrastructure Investment Programme of South Africa (IIPSA) provided grant funding for the feasibility study. Grant funding from both DBSA and IIPSA will likely be involved in the financing of the project. DFIs are expected to part finance the project.


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