A major new partnership between international water and sanitation organization Aqua for All and Bunna Bank aims to transform access to clean water and sanitation services by addressing Ethiopia’s significant financing gap in the WASH sector. The joint initiative introduces a consolidated lending facility designed to accelerate progress toward Sustainable Development Goal 6 by mobilizing more than 330 million birr in blended finance.

This strategic move signifies a shift from prior programs focused mainly on micro and small financial institutions to engaging commercial banks, enabling the attraction of large-scale private capital. Aqua for All’s capital, combined with 75% of Bunna Bank’s resources, underpins this innovative financing model that reduces investment risks and empowers local micro, small, and medium enterprises (MSMEs) to expand and attract further investment.

Scheduled to run until 2029, the partnership seeks to transition WASH service provision from being solely a government or charity responsibility into a sustainable business opportunity. Empowerment of women and girls forms a core focus area, integrating gender equality with climate change mitigation and adaptation efforts to maximize impact.

Since 2019, Aqua for All has successfully expanded improved water and sanitation access across Africa and Asia, with Ethiopia as a critical focus. The new blended finance program builds on this experience, strengthening the capacity of financial institutions to develop specialized lending products that cater to the unique challenges of the WASH sector.