Sector Study N°6 - Situation of water and sanitation solution financing in Central America and the Dominican Republic: generating synergies

Between 2018 and 2021, REDCAMIF published a serie of studies on microfinance in Central America and the Caribbean to highlight the advances and challenges of the inclusive finance sector in the region. This document reflects the joint effort that REDCAMIF and ADA have made over the past 10 years to promote the financial and social inclusion of micro and small entrepreneurs. This study is the first in the series.

This study is an initiative of cooperation and collaboration between the Red Centroamericana y del Caribe de Microfinanzas (Central American and Caribbean Microfinance Network, or REDCAMIF) and Water For People. These two organisations come together in their efforts to meet the needs of vulnerable families in Central America and the Dominican Republic in the area of clean water and sanitation, in order to improve their quality of life.

The objective of this sectoral study is to learn about the current situation of microfinance sector financing for water and sanitation, evaluate the limitations and identify the best ways to promote and scale up this financing within the offer of microfinance institutions.

The methodology of the study is mixed: information was collected through surveys and interviews with microfinance institutions, second-tier financial institutions and organisations specialising in water and sanitation.