VFI and World Vision unite to scale access to water and sanitation

VisionFund recently signed a Memorandum of Understanding with World Vision USA, formalising a partnership that builds repayable finance into WV’s water and sanitation programming to increase the sustainability and scale of their impact.

World Vision is the leading implementer of rural water systems across Africa. Water, sanitation, and hygiene (WASH) programming is a pillar of WV’s work globally, and forms part of the new sponsorship foundational package.

WASH financing has now been included as an integral part of WV’s global WASH Business Plan through 2030, and VisionFund will be taking the lead in developing this part of the strategy with World Vision. WV USA is fully funding VisionFund’s engagement, covering VFI staff costs and contributing seed capital for the creation of the Blue Thread Fund.

“This partnership represents a unique opportunity for VisionFund to assist World Vision in taking a more sustainable and scalable approach to WASH programming,” VisionFund Director of Inclusive Finance, Christy Stickney, said.

“It takes us beyond our initial pilots in WASH microfinance to a much more strategic role, identifying and developing bankable components within water and sanitation systems and connecting these with appropriate financing,” she added.

The role of the Blue Thread Fund is to test the use of concessionary financing for financial institutions and WASH service providers to increase access to safe water and sanitation services. Under this agreement, VFI will work with the WASH team to identify and develop bankable projects, building an investment pipeline for the Fund.

Two of the initial projects include the financing of household water connections in Rwanda (in partnership with VisionFund Rwanda) through a local service company and the financing of community handpump rehabilitations in Uganda (in partnership with PostBank Uganda).

As this work expands, it will represent an opportunity for VisionFund MFIs to engage in WASH financing when this aligns with the institution’s priorities and capabilities. Other financial service partners will be considered as well.

Microfinance Institutions (MFIs) are encouraged to contact Christy Stickney at christy_stickney@wvi.org to explore innovative and scalable ideas for providing financing to underserved communities in need of water and sanitation solutions.

 

by Christy Stickney, VFI Director of Inclusive Finance