Enterprise-Driven Impact in Water and Sanitation
Lack of financing at the local and household levels remains a significant barrier to equitable access to safe water and sanitation. WaterEquity addresses this challenge by providing debt capital to financial institutions in emerging markets to expand water and sanitation lending to underserved households and enterprises. These financial institutions use this capital to grow their water and sanitation microloan portfolios, as well as to on-lend to local enterprises delivering water and sanitation products and services.
To date, WaterEquity has enabled 1.4 million microloans, reaching over 7 million people in Asia, Africa, and Latin America with safe water and sanitation access. This progress has been achieved by helping local financial institutions identify unmet demand, design effective loan products, strengthen internal capacity, and measure impact—through a combination of technical assistance and capital investment.
In addition to household loans, WaterEquity finances enterprises across the water and sanitation value chain—from manufacturers of pipes and toilets to suppliers of water tank and service providers managing delivery and waste systems. These businesses play a critical role in expanding household access to safe water and improved sanitation, especially in low-income and rural communities that rely on informal markets.
Yet enterprises in emerging markets continue to face significant credit constraints. The International Finance Corporation estimates that 65 million firms, or 40% of formal enterprises in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of global enterprise lending.
Since 2016, WaterEquity has deployed over $450 million in capital to accelerate access to safe water and sanitation across emerging markets. Of this, more than $88 million has supported financing for enterprises in the water and sanitation sector through 19 loans— 4 directly to enterprises and 15 to financial institutions serving SMEs. The latter has enabled over $118 million in on-lending to 2,515 enterprises, helping extend water and sanitation products and services to underserved communities
In honor of this year’s MSME Day, we are highlighting the impact three of our financial institution investees have achieved through SME finance. At WaterEquity, we deeply value the critical role played by the financial institutions and enterprises we invest in across the water and sanitation sector—as crucial agents of change driving progress and delivering lasting impact.
Portfolio Company Highlights
KCB Tanzania – In 2024, KCB Bank, a subsidiary of KCB Group, signed a $15 million loan agreement with WaterEquity to expand water access across Tanzania, with a particular focus on rural areas. The funding supports projects led by the Rural Water Supply and Sanitation Agency (RUWASA) and the Dar es Salaam Water Supply and Sanitation Authority (DAWASA), enabling lending to businesses across the water supply chain—from construction to equipment manufacturing and supply. In 2024 alone, KCB disbursed more than $28 million in loans for water and sanitation projects. This investment aims to catalyze growth in Tanzania’s water sector by strengthening the local ecosystem of SMEs working to deliver clean, reliable water source. With technical assistance from Water.org, KCB Tanzania has also enhanced its internal capacity to scale lending in this critical sector.
Golomt Bank, Mongolia – Golomt Bank, the second largest bank in Mongolia, established in 1995, received a $5 million loan from WaterEquity to support water and sanitation projects in rural and semi-urban areas. This loan aims to strengthen Golomt Bank’s lending capacity to households, enterprises, and small to medium-sized producers across the water value chain—helping to improve water and sanitation access in underserved communities. These SMEs include water product manufacturers, borehole drilling companies, distributors, sanitation contractors, and mobile water vendors—each playing a vital role in expanding water access in Mongolia. With technical assistance from Water.org, Golomt Bank is also building internal capacity to more effectively serve clients operating within this critical sector.
ACLEDA Bank, Cambodia – As Cambodia’s second-largest bank with a strong SME lending portfolio, ACLEDA Bank is well-positioned to scale access to finance for water and sanitation. In 2024, the bank secured a $9 million loan from WaterEquity to support the growth of its water supply and sanitation lending portfolio. Prior to this investment, ACLEDA had already identified more than $12 million in loan opportunities for over 100 water and sanitation-related SMEs. With support from Water.org, ACLEDA is enhancing its internal systems to better monitor and scale this portfolio.
Expanding Water Storage in Mongolia – San-Ekh LLC, a water storage tank supplier in Ulaanbaatar, Mongolia, has been providing storage solutions since 2016 for residential complexes, public buildings, and rural households lacking direct water access. Despite strong demand, limited capital previously restricted the company’s ability to place bulk inventory orders.In March 2024, San-Ekh secured approximately $147,889 in financing from Golomt Bank, which enabled the company to purchase inventory, streamline its supply chain, and scale operations. With this financing, San-Ekh installed water storage tanks for 684 tons of water across 10–20 residential complexes, hospitals, and resorts—improving water access for approximately 3,000 households.
The financing also helped the company maintain adequate inventory levels, reducing supply chain disruptions during peak seasons. Known for durability and corrosion resistance, San-Ekh’s tanks are now reaching more households, with added services like quarterly cleanings further enhancing customer satisfaction.
One such household belongs to the Dandarvanchig family, who installed a one-ton tank that now provides stable access to hot and cold water—essential during Mongolia’s -25°C winters. Beyond meeting daily needs, the family now collects rainwater to sustain their garden, setting an example for their neighborhood.
Social impact data as of 12/31/2024. Past performance is not indicative of future results. All investment has a risk of loss. There can be no assurance of any level of social or environmental impact. There is always the risk that impact investments will have a net negative impact, despite best efforts to achieve net positive impact.
Information on San-Ekh LLC and photos provided by Golomt Bank
Photos by Water.org