We are supporting Senegalese and Rwandan partners to develop a Water, Sanitation and Hygiene (WASH) Development Impact Bond to improve the safe collection and transport of faecal sludge (FS)
Social Finance and the United States Agency for International Development (USAID) are collaborating to improve health and wellbeing in Dakar and Kigali by maximising the amount of harmful fecal sludge safely removed from residential areas.
The team is currently assessing whether an outcomes-based approach, e.g. a development impact bond, could be used to achieve this result.
Why are we doing this?
- Inadequate sanitation is a major & urgent health challenge: sanitation-related disease is the leading cause of mortality for children under five.
- Yet fewer than 5% of WASH projects are re-visited after project completion. We need to find a way to deliver sustained impact.
- There is an estimated US$535 billion funding gap to achieve the Sustainable Development Goal of ensuring availability and sustainable management of water and sanitation for all.
What are we doing?
In response to the clear need for investment in WASH, Social Finance and USAID are working to assess how best to improve health and environmental outcomes in fecal sludge management in Kigali, Rwanda and Dakar, Senegal, through innovative financing structures.
As part of a previous scoping study looking at the Water, Sanitation and Hygiene (WASH) sector, Social Finance identified faecal sludge management as being well-positioned to benefit from an outcomes-based model (e.g. a Development Impact Bond). In particular, Social Finance identified the safe collection and transport of fecal sludge from low-income households as a key challenge that needs to be addressed to help drive progress towards Sustainable Development Goal #6, which seeks better WASH outcomes for all.