WASH 2011 conference: Jeff Goldberg MF Advisor

1. Microfinance for Water & Sanitation: Cambodian Case Study Jeff Goldberg MF Advisor WASH Conference; Brisbane, Australia May 16, 2011

2. USAID Global Development Alliance (GDA) Managed by UNC-Chapel Hill Implements Paul Simon Water for Poor Act Emphasizes market-based approach to increase access to WASH products and services in lower income populations What is WaterSHED?

3. Sanitation Water WaterSHED Overview Cont’d Enterprise Development Hygiene

4. What is microfinance for WASH? Refers to small loans and other financial products (e.g., savings schemes) to household consumers and small scale water and sanitation service providers (e.g., latrine suppliers)

5. Opportunities for MF HWTS Product Sales Sanitation Marketing

6. Existing Challenge “AUT LUOY” “If I have $, I will buy a [toilet] [water filter]”

7. 4 Pronged MF Pilot 1-Indiv / SME Loans Scalability WASH PRODUCT UPTAKE 2- Savings & Loans Consumers MICROFINANCE 3- Trade Credit 4- Thong Thin Savings

8. Is MFI needed?

9. WaterSHED-MFI Partnership Short list criteria: Social Mission / willingness to engage Community reputation Products offered Geographic overlap with WaterSHED areas of operation

10. Ground-up Partnership Process: Learning exchange - inviting MFI branch staff to visit suppliers & attend WASH marketing events View operations to ID points of entry for financing

11. Initial Challenges Interest rates for indiv / SME loans – cited as a major concern for suppliers Savings – collection venue also a major concern for households / end-users Sustainability of subsidized vs. unsubsidized model (Vision Fund-Hydrologic)

12. Initial Opportunities / Lessons MFIs interested in engaging in social activity – customer loyalty for existing clients and value added to reputation Need hand-holding – reluctant to add new operations without TA / guidance & evidence of scale Also interested in new client base – WASH marketing platform good ‘carrot’ for ensuring engagement Importance of MFI commitment to social mission – driving factor behind solidifying partnerships

13. Specific Uptake Study Study launch (planned: August 2011) in partnership with UNC - Chapel Hill Ongoing data collection of financial product impact on adoption of WASH technologies in target areas (6 months) Publication and dissemination of results (1 year)

14. Questions? Jeff Goldberg Microfinance Advisor jeff@watershedasia.org +855 77 959 760