In a recent forum organized by Aqua for All in collaboration with the Hilton Foundation, experts emphasized the need for significant policy changes to address Ethiopia’s water, sanitation, and hygiene (WASH) crisis. The WASH sector, often overlooked, is described as a “silent killer” that should be prioritized in the national development agenda.
Ethiopia faces severe challenges in the WASH sector, including severe water shortages, inadequate sanitation, and the negative impacts of climate change. Despite progress in recent years, 43% of the population lacks access to improved water sources, and 28% practice open defecation, leading to significant health risks.
Experts highlighted the underfunding of the WASH sector and the need for immediate government intervention. Salfiso Kitabo, Innovative WASH Finance Advisor at FINISH MONDIAL, emphasized the importance of a collaborative approach involving government, financial institutions, and the private sector to address the funding shortage.
Salfiso suggested that the National Bank of Ethiopia should mandate commercial banks to allocate a portion of their loans to WASH initiatives, similar to agricultural loans. “If the government prioritizes agricultural fertilizer, why not give it to WASH?” he asked, noting that water and sanitation shortages have more severe consequences than fertilizer shortages.
Aarno Keijzer, Impact Finance Lead for Aqua for All, underscored the urgent need to address water scarcity and sanitation problems, especially in rural areas. “Climate change, floods, droughts are affecting water supplies. In addition, there is a lack of safe sanitation in rural areas,” he said.
Josien Sluijs, Managing Director of the Aqua for All Foundation, echoed these concerns, emphasizing the importance of mobilizing private capital in partnership with banks and small financial institutions. Government budgets alone cannot meet the sector’s needs, he noted.
The forum emphasized the importance of co-developing programs with financial institutions. Successful partnerships require the collaboration of various stakeholders, including regulators and technology companies. Institutions are called upon to prioritize the strategic status of WASH and build capacity to sustain portfolio growth over time.
Aqua for All has announced the WASH Finance Program, designed to raise private capital for the sector in partnership with the Hilton Foundation. The program aims to work with local banks and small financial institutions to create lending products for WASH-related products and services.
Experts stress that addressing the WASH crisis should not be limited to the Ministry of Health or the Ministry of Water but should be a priority across all ministries and financial institutions in the country. By adopting a collaborative and multi-stakeholder approach, Ethiopia can effectively combat its WASH challenges and ensure a healthier future for its population.
