Driving Impact Through Finance: Aqua for All and SDC Launch Call for Water & Sanitation Fund Managers (Deadline: 31 July, 2025)

Catalyzing Change: Financing Water & Sanitation Innovations in Emerging Markets

Access to clean water and sanitation remains a critical global challenge—especially in Least Developed Countries (LDCs) and Lower- and Middle-Income Countries (LMICs). Although the world needs an estimated US $114 billion per year to meet Sustainable Development Goal 6 (SDG 6), philanthropic and donor contributions provide only a fraction of that sum. Bridging this funding gap demands innovative public-private collaboration and tools that unlock private capital flows and incentivize social outcomes.

Collaboration That Scales: Aqua for All and SDC Partnership

Aqua for All—a Dutch foundation active since 2002, with operations in 65 countries—has been at the forefront of using blended finance to accelerate water and sanitation solutions. Together with the Swiss Agency for Development and Cooperation (SDC), they’ve launched a four-year, €19.2 million partnership to channel catalytic and results-based finance, technical assistance, and impact-linked incentives into SDG 6 solutions.

Their new programme, Driving Impact through Innovative Financing, is now accepting applications from legally registered fund managers and financial intermediaries with a demonstrated focus on water and sanitation in emerging economies.

Dual Tracks for Maximum Impact

Applicants can vie for two distinct investment tracks—Track A: Catalytic Investment and Track B: Result-Based Finance (RBF)—each paired with tailored technical assistance (TA) to maximize effectiveness and sustainability.

Track A — Catalytic Investment in Funds

Functioning as first-loss capital, this track seeks to de-risk water and sanitation funds, enabling them to attract private sector investment. Aqua for All provides equity injections, supplemented by targeted TA and access to visibility and knowledge-sharing platforms.

Objectives:

• Achieve at least 6× private capital leverage, a central program target.
• Strengthen fund capabilities in Impact Measurement & Management (IMM), gender and climate integration.
• Promote scalable and sustainable investment into service providers.

Eligibility:

• Registered legal fund vehicles with a clear mandate in water & sanitation investment.
• A track record in or ambition for operations in LDCs/LMICs.
• Capacity to mobilize private capital and demonstrate commitment to IMM, gender, and climate themes.

Track B — Result-Based Financing (RBF) Facility

This track supports the design and implementation of performance-based incentives within existing water and sanitation portfolios. Aqua for All provides funding for incentive payments, independent verification structures, and technical expertise.

Objectives:

• Award measurable outcomes in service delivery.
• Promote innovation, accountability, and sector ecosystem strengthening.

Eligibility:

• Funds or intermediaries with active water & sanitation investments.
• Proven ability to structure/disburse incentives and carry out independent impact verification.
• Alignment with SDG 6 results frameworks, and openness to TA and knowledge-sharing.

Lessons from the Field

This isn’t Aqua for All’s first time innovating with finance. Their SIINC for WASH pilot—launched in 2020 with Roots of Impact—drew 140 applications from 33 countries, funding four social enterprises with €1.2 million over three years. These incentive payments unlocked profitability, improved impact measurement, and attracted further capital support.

Moreover, discussions with the Container-Based Sanitation Alliance highlighted RBF’s potential to unlock deferred financing, adapt to contextual shifts, and encourage smaller investors through targeted risk capital.

Why Invest Now?

SDC’s policy backing notes that junior capital is instrumental in mobilizing more senior commitments from family offices, DFIs, and institutional investors—particularly in LDCs and LMICs where local SMEs bear the brunt of service delivery. Aqua for All’s blended finance model—combining first-loss equity, RBF, technical assistance, and SIINC incentives—has demonstrated its potential. Examples include partnerships like Water Access Acceleration Fund with Danone and Incofin, where catalytic capital plays a dual role in de-risking investment and providing sector-specific expertise.

Application Timeline

The open invitation is active through Thursday, 31 July 2025. Post deadline, candidates will be invited to introductory meetings in early August, followed by detailed proposals, due diligence in October, and final approvals by December 2025.

Applicants can propose for one or both tracks, provided they meet eligibility criteria for each.

Final Thoughts

Driving Impact through Innovative Financing offers a rare opportunity to shape the future of water and sanitation financing in emerging markets. Whether you manage a fund or function as a financial intermediary, this call provides risk-enhanced capital, expert coaching, and an ecosystem of impact-focused partners.

If you’re ready to elevate your fund’s impact and engage in SDG 6 solutions, explore the FAQs, start your application HERE before 31 July 2025, and get ready to help reshape water access worldwide.

CLICK HERE TO READ MORE & APPLY