Why we use Impact-Linked Finance as a WASH funder, and why you should too

Access to safe water and sanitation is not only a matter of infrastructure. It is a matter of finance, of local ownership, and of business models that keep working once the first funder has moved on.

Impact-Linked Finance rewards results rather than activity. Instead of paying for a plan, funders pay for the outcome the plan was meant to achieve, which shifts the risk of underperformance away from the people who are meant to benefit.

In practice that means agreeing on a small number of outcomes that matter, measuring them honestly, and being willing to be surprised. Enterprises that reach more low-income households earn more; those that do not, do not.

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