The Overseas Private Investment Corporation, a self-sustaining agency of the US government, recently agreed to lend USD 20 million to the WaterCredit Investment Fund 3, which will invest in microfinance institutions (MFIs) and other organizations that facilitate the deployment of safe water and sanitation systems. The goal of the fund is to raise USD 50 million to reach 4.6 million people in South and Southeast Asia over seven years.
OPIC CEO Ray Washburne said that “Access to safe water and sanitation is vital for security, stability, and moving the global economy forward.” OPIC has approximately USD 1 billion in commitments in 160 countries.
The WaterCredit Investment Fund 3 is managed by WaterEquity, a “social impact investment manager” founded by Water.org, which reports having brought clean water, sanitation services or both to 7 million people since the 1990s.
The first WaterCredit Investment Fund, which was launched in 2014, disbursed USD 11 million to seven MFIs in India. As of 2017, these institutions have used the funding to deliver 35,000 loans, alleviating the water and sanitation needs of 180,000 people.
Sources and Additional Resources
WaterEquity press release
MicroCapital: Water.org Launches WaterCredit Investment Fund 3 with $5m Loan from Bank of America
MicroCapital: OPIC Lends $5m for Microfinance in Myanmar via Accion
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