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Financing for Improved Sanitation: Case Study from SNNPR, Ethiopia
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USAID Transform WASH Project
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Significant numbers of households have gained access to self-constructed basic latrines in rural areas after the Ministry of Health introduced Community Led Total Sanitation and Hygiene (CLTSH). However, most of these latrines fall short of fulfilling the minimum standards for improved sanitation.
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The National Sanitation Marketing Guideline aims to guide the design, implementation, monitoring and evaluation of sanitation marketing initiatives. It seeks harmonization of demand and supply for improved sanitation and hygiene facilities and to create a conducive enabling environment for the private sector to get involved in the sanitation business.i
The guideline encourages microfinance institutions to provide loans to provide loans to small businesses (supply chain actors) engaged in sanitation and to households. It furthermore encourages development partners and Government to encourage the finance sector to mobilize resources for sanitation and to make financial products available for sanitation and to provide technical support to the MFIs so that the private sector can play a key role in upgrading technology options and sanitation marketing.
USAID Transform WASH supports the Government of Ethiopia to initiate and implement sanitation marketing and market development activities. As the project recognizes the need for innovative financing products, a financing study was carried out in in the Southern Nation, Nationalities and Peoples Region.
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USAID Transform WASH aims to improve water, sanitation and hygiene (WASH) outcomes in Ethiopia by increasing access to and sustained use of affordable, quality WASH products and services, with a substantial focus on sanitation.
It does so by transforming the market for WASH: stimulating demand at the community level, strengthening supply chains and building the enabling environment for a vibrant private market.
USAID Transform WASH is a USAID-funded project implemented by PSI in collaboration with SNV, Plan International, and IRC. The consortium is working closely with government agencies - including the Ministry of Health, the Ministry of Water, Irrigation and Electricity, the National WASH Coordination Office and sub-national governments.