During a very lively discussion extending deep into the night, the co-founders of FINISH arrived at a concept for a scalable sanitation project. The idea that emerged in Bhubaneswar, India, was that it would bring together Dutch sanitation expertise and the extensive network of microfinance institutions from the Microinsurance Rural department of the insurance company TATA-AIG.

When we started this journey about 15 years ago, the idea that people would take a loan to build a toilet was pretty outlandish. Questions abounded: Why would they? People have other more pressing needs. Why would microfinance institutions lend for sanitation when a toilet does not generate income? And also, more generic questions arose, such as there being no demand and why to indebt people when sanitation is a public good and a government responsibility?

In this current (fifth) paper of our Financing Sanitation Paper Series, we describe our 15-year journey. It has been a steep learning curve! With a focus on sharing crucial lessons from the plethora of mistakes and successes along the way, this historical narrative isn’t just a recount; it’s a roadmap for future endeavors in sustainable sanitation financing.

 

 

The Financing Sanitation Paper Series is a unique collection of six out of a total of seven articles about different aspects of sustainable financing of sanitation in emerging markets. The papers have so far covered: (1) financial instruments used in FINISH (>30); (2) financial inclusion – public and private funding; (3) microinsurance; (4) bill of quantities for sanitation.