When it comes to water and sanitation, the impact of financing is not just theoretical — it’s transformative. As someone closely following the developments in this field, I’ve seen how lending for water and sanitation is making a real difference in the lives of millions. At the heart of this effort is Water.org, an organisation that is breaking down barriers to ensure that even the most marginalised communities can access these essential services.
Water.org has partnered with over 149 financial institutions across the globe, combining their international expertise with local insights to create loan products that meet the needs of specific regions. The scale of their impact is staggering — $5.7 billion has been mobilised to provide small loans, helping millions secure access to safe water and sanitation. This isn’t just a financial achievement; it’s a catalyst for lasting social change.
In Uganda, for example, around 40% of WaterCredit borrowers are new clients who were previously outside the formal financial system. It’s a significant entry point for people in need, often providing them with their first taste of formal credit. For existing clients, water and sanitation loans have strengthened their loyalty to lending institutions, and many go on to explore financing options for housing or small businesses. What stands out is the sustainability of these loans — the global repayment rate for WaterCredit is a remarkable 98%. People are motivated to repay because the benefits of having clean water and proper sanitation far outweigh the cost of living without it.
The value of water and sanitation loans extends beyond the individual borrower. Financial institutions benefit from portfolio diversification with relatively low risk, as these loans are as secure as other types of microfinance products. In fact, offering such loans has proven profitable. Clients are willing to pay market interest rates because they understand the tangible improvements in quality of life that come with access to clean water and sanitation. These loans not only increase profitability but also enhance the social responsibility profile of lending institutions, making them more attractive to socially conscious investors and clients.
Water.org’s approach is deeply collaborative. They don’t just provide financial solutions; they work closely with partners, offering training and technical assistance to ensure that lending for water and sanitation is both effective and scalable. This practical support connects financial institutions to large, underserved markets, allowing them to make a lasting social impact while growing their business.
Access to safe water and sanitation is more than a matter of convenience — it’s a pathway out of poverty. It changes everything, from health and education to economic opportunities. Women, who are often burdened with the task of fetching water in many communities, regain hours of their day when clean water is easily accessible. Children, too, benefit by being able to attend school more regularly, and families as a whole see improvements in their health, which reduces healthcare costs and increases their ability to work and thrive.
The scale of the water crisis remains daunting. Today, 2.2 billion people — that’s one in four of us — lack access to safe water at home, and 3.5 billion people don’t have access to a safe toilet. The global water crisis is not just a looming environmental challenge; it’s a human one. The work that Water.org and its partners are doing to meet this challenge has already touched over 70 million lives, offering not just water, but hope and opportunity.
What strikes me most about Water.org’s approach is its blend of passion and pragmatism. Founded by Gary White and actor Matt Damon, Water.org has spent over 30 years pioneering market-driven solutions to one of the world’s most pressing issues. Their model proves that finance, when used wisely, can be a powerful tool for change, connecting people with the resources they need to lift themselves out of poverty.
As we look to the future, the role of access to safe water and sanitation in global development cannot be overstated. With Water.org’s proven approach and its expanding network of partners, there is real hope that we can one day end the global water crisis. Until then, each loan disbursed represents a step closer to a world where safe water is a right, not a luxury.
More information: https://water.org
Youtube credits: https://www.youtube.com/@water