According to recent data, 27 AMFIU member institutions have disbursed a total of UGX 28,196,332,673 towards water and sanitation initiatives. As part of AMFIU’s commitment to financial inclusion, the association is assisting its members in developing social loan products to cater to excluded individuals and address the social impact of these institutions. The Water Credit loan facility, implemented among members institutions with support from water.org, has shown significant success.
AMFIU is actively supporting members in adopting and integrating socially oriented loan products. While some financial institutions focus on offering consumption and education products, others do not prioritize lending for home improvement or water supply and sanitation finance products. Many financial institutions primarily prioritize business lending for income-generating purposes.
The introduction of microfinance for water and sanitation is a relatively new concept in many areas, leading to a significant unmet demand for such services. Clients often resort to taking business loans and redirecting funds towards water and sanitation needs, which may not align with the interests of both the financial institutions and borrowers.
The implementation of a Water Supply and Sanitation loan product not only contributes to the institutions’ profits but also addresses the social impact of the institution on their clients. This initiative aims to bridge the gap in meeting the water and sanitation needs of individuals while ensuring financial sustainability and social responsibility within the microfinance sector.