The EIB Global-managed Water Sector Fund will allocate €10 million to the Water Access Acceleration Fund (W2AF) overseen by Incofin, a leading global impact investment manager.
W2AF is a blended finance impact fund with a focus on water, aiming to enhance access to safe, affordable drinking water for underserved populations in Sub-Saharan Africa and South and Southeast Asia. The initiative aims to deliver 20 billion liters of safe drinking water by 2030.
EIB Global’s €10 million anchor investment will attract additional investments and draw more private investors to W2AF, supporting innovative water enterprises.
Rite Water Solutions in India, a company enhancing water quality and providing drinking water solutions in rural and urban areas, is among the initial beneficiaries, with over 540,000 households expected to benefit.
This backing for W2AF marks the Water Sector Fund’s first investment, a trust fund established in collaboration with the Dutch government and managed by EIB Global.
Utilizing donor financial resources, the Water Sector Fund develops drinking water projects in low- and lower-middle income countries, aligning with the UN Sustainable Development Goals.
EIB Vice-President Robert de Groot remarked, “This investment showcases our joint commitment to enhancing access to safe, affordable drinking water for all. Innovative financial and technical solutions are needed. The W2AF is an excellent example, funnelling water investments to the regions that need it most and helping build the private water ecosystem in emerging markets in Africa and Asia. I extend my gratitude to the Dutch government for their vital support, making this impactful endeavour possible.”
Cees Bansema, Ambassador of the Kingdom of the Netherlands to Luxembourg, stated, “Ensuring access to safe drinking water is a fundamental human right crucial for social and economic progress. The investment in W2AF demonstrates how collaboration enhances the sustainability and inclusivity of water projects.
This initiative also showcases our ability to attract additional funding from other financial institutions or investors. It serves as a flagship project of the Dutch-funded Water Sector Fund, uniting the Netherlands’ ongoing dedication to addressing global water challenges, the EIB’s extensive experience in water investments worldwide, and fund manager Incofin’s impressive history in impact investments.”
Background information
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance outside the European Union.
EIB Global is designed to foster strong, focused partnerships within Team Europe and as part of the EU Global Gateway strategy, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices around the world.
The Water Sector Fund is an EIB-managed trust fund established in 2017 in partnership with the government of the Netherlands. It focuses on water sector projects in low- and lower-middle income countries, supporting universal access to water supply, sanitation and hygiene. The fund is open to contributions from other donors seeking to achieve UN Sustainable Development Goal 6: clean water and sanitation for all.
Incofin Investment Management is an impact investment fund management company for the Global South. It is headquartered in Belgium and has offices worldwide.
It focuses on investments in financial inclusion, agri-food businesses, and safe water companies, with assets under management of €1.3 billion. Its investor base comprises development banks, institutional investors, family offices and private individuals.
Source :European Investment Bank
