Developing the business case for WaterCredit for Mexican microfinance institutions
Water.org is a U.S.-based non-profit organisation working to increase access to water and sanitation by working with financial institutions to increase access to capital for water and sanitation services and to empower low-income households to invest in water and sanitation facilities.
Water.org commissioned IPC to develop a compelling business case for microfinance institutions (MFIs) in Mexico to engage with its WaterCredit programme. The overall goal of the project was to clearly demonstrate the business case for water supply and sanitation loans for households and companies, stimulating the interest—and participation—of Mexican MFIs in the programme.
Based on an analysis of and interviews with Mexican MFIs and Water.org partners in other Latin American markets, the IPC team designed a roadmap for MFIs implementing a WaterCredit loan programme in Mexico, including recommendations and milestones for: the design of water loan products, the piloting and roll-out process, training, marketing and credit cycle procedure. Additionally, IPC provided a calculation tool for MFIs with key indicators (e.g., rates of return, break-even points) and success stories/case studies from successful Water.org partners offering water and sanitation loans to their clients.