Water Entry Acceleration Fund: €36 million dedicated for protected consuming water

Incofin launches first ever blended finance fund targeted on protected consuming water

• This pioneering fund may have monetary and social affect and shall be an “affect first” blended fund.
• It is going to put money into sturdy progress corporations. The fund goals to supply protected consuming water to 30 million folks, primarily in Africa and Asia.
• The fund’s first shut reached EUR 36 million in commitments, with the intention to double this in upcoming closings.

Antwerp, Paris, March 16, 2023, Incofin pronounces within the lead-up to the UN 2023 Water convention and World Water Day, the launch of the Water Entry Acceleration Fund (W2AF). W2AF is a personal fairness fund specializing in protected consuming water, with EUR 36 million of commitments. The blended fund goals to supply 20 billion liters of water to 30 million folks, primarily in Africa and Asia. W2AF invests in modern water companies that present reasonably priced, protected consuming water to underserved populations. The dedicated capital comes from a various pool of personal and public buyers, together with Danone together with BNP Paribas, the U.S. Worldwide Improvement Finance Company (DFC), Norfund, the Danish growth finance establishment IFU, and worldwide basis Aqua for All. The U.S. Company for Worldwide Improvement (USAID) offered catalytic funding to allow a first-loss tranche via the INVEST initiative.

W2AF is the primary personal fairness initiative in a sector that’s historically financed by governments, donors and foundations. The fund goals to exhibit the monetary viability of the protected consuming water market worldwide. It has a blended finance construction – an method to make use of a part of the private and non-private donor funds to draw capital from personal buyers. W2AF hit EUR 36 million in commitments at this primary closing and goals to attain whole capital commitments of EUR 70 million in subsequent closings.

W2AF goes the final miles
At this time, greater than two billion folks would not have entry to protected consuming water. Insufficient or unreliable entry to protected water is a harsh actuality for a lot of, particularly in giant elements of Africa and Asia. Piped water is in most international locations a standard technique to get water to customers, however the place piped networks are unavailable or unreliable, folks depend on wells or neighborhood water provide programs. Largely girls and women must stroll, generally for miles, to achieve the closest water supply. A rising world inhabitants, along with rising consumption and local weather change threatens to extend water entry inequality much more.

Increasingly more, native entrepreneurs are arising with promising market-based, but reasonably priced options. W2AF plans to put money into numerous decentralized options, similar to water kiosks, which ship safely handled consuming water in gallons to the house or to the native retailer. As well as, the fund will put money into water pipe infrastructure and water applied sciences. The investments will contribute to delivering protected consuming water to low-income communities all over the world.

“Drinkable water is a luxurious we too typically take for gr anted. But, 2.2 billion folks as we speak would not have entry to securely managed consuming water. In the meantime, there are gifted water firm homeowners who know find out how to remedy this drawback however cannot discover an investor who aligns with their imaginative and prescient to assist them scale up. That is why Incofin created the Water Entry Acceleration Fund (W2AF), to handle the expansion capital wants of those entrepreneurs, and to show that the consuming water sector is funding prepared, even when concentrating on low revenue folks.” Dina Pons, Managing Companion Incofin and W2AF Fund Relationship Supervisor.

“In a context the place 1 in 3 folks on the earth would not have entry to protected consuming water, we think about that it’s essential to affix forces with private and non-private actors and scale up monetary and social affect. Water is a key pillar of our mission to convey well being via foods and drinks. Whereas with our water manufacturers like AQUA, Bonafont, Volvic, we intention to ship the healthiest hydration choices, we all know water entry is just not a actuality for all. Constructing on the expertise of our affect fund Danone communities, we’re as we speak going a step additional in supporting modern social companies devoted to water entry subject, and we hope different actors will quickly be a part of us.” Henri Bruxelles, Chief Sustainability and Strategic Enterprise Improvement Officer of Danone.

“Blended finance is essential to attain common entry to water. Secure consuming water enterprises complement public efforts serving low revenue communities in rising markets. These enterprises wrestle to entry capital to scale and turn out to be sustainable. By making impactful water investments, W2AF will pave the best way for different personal and public buyers. Collaborating in W2AF aligns with our mission to speed up entry to protected consuming water by catalysing personal capital “, mentioned Josien Sluijs, Managing Director of Aqua for All.