In a strategic move to enhance access to improved sanitation and hygiene services in Eastern Uganda, AMFIU entered into a partnership with Water For People, a global organization committed to increasing access to safe water, sanitation, and hygiene (WASH) services. This partnership falls under the Sanitation and Hygiene Fund (SHF) initiative and specifically targets the districts of Luuka and Kamuli
The core objective of the collaboration is to scale up household-level sanitation and hygiene by empowering Microfinance Institutions (MFIs) and Savings and Credit Cooperative Organizations (SACCOs) to develop and offer tailored financial products that meet the specific sanitation and hygiene needs of their communities.
To kickstart the intervention, a comprehensive capacity assessment was conducted to evaluate the readiness of the selected MFIs and SACCOs to engage in sanitation and hygiene financing. The assessment focused on existing financial products, institutional capacity, governance structures, and client engagement strategies.
Key highlights from the assessment include:
- Limited Experience in Sanitation Lending: Most MFIs lack dedicated financial products targeting sanitation and hygiene. Sanitation-related loans are typically bundled under broader home improvement or housing loan categories, making it difficult to track or prioritize sanitation outcomes.
- Capacity Gaps Identified: There are notable gaps in technical capacity related to sanitation product design, loan management, risk assessment, marketing, and customer service. Many institutions also require support in strengthening governance and accountability structures to manage sanitation-focused financing effectively.
- Opportunity for Impact: The SHF grant, provided through this partnership, aims to bridge these gaps by offering technical assistance, training, and funding to support the development of specialized sanitation loan products. This support will extend to key areas such as: Development and refinement of sanitation-specific financial products, financial and operational management capacity-building, improved SACCO and MFI governance frameworks. and enhanced marketing and customer care tailored to WASH-related financial services.
AMFIU and Water For People believe that this partnership will not only enhance the capacity of local financial institutions but also contribute significantly to public health, dignity, and the overall well-being of households in Luuka and Kamuli districts.