What We Do /
Catalytic financing
SHF proposes a paradigm shift in how sanitation, hygiene, menstrual health and wastewater treatments are financed
Unlocking public and private finance for sanitation, hygiene, menstrual health and wastewater
SHF works with multilateral and national development banks, finance institutions, impact investors and governments to mobilize and deploy financial resources in innovative ways to drive impactful initiatives for sanitation, hygiene and menstrual health.
This involves leveraging diverse funding mechanisms, including grants, loans and blended finance, to support sanitation economies and menstrual health markets. SHF also aims to incentivize local currency financing by partnering with local financial institutions in priority countries and deploying grant funding as catalytic financing instruments as part of tailored loan facilities.
The UN Multi-Partner Trust Fund for Catalytic Finance in Sanitation, Hygiene and Wastewater
The first UN Multi-Partner Trust Fund (MPTF) dedicated to Sustainable Development Goal (SDG) target 6.2, the Sanitation, Hygiene and Wastewater MPTF brings a much-needed impetus to catalyze investments into the severely overlooked and underfunded sectors of sanitation, hygiene, menstrual health and wastewater.
Launched by SHF, together with the UN Capital Development Fund (UNCDF) and the UN Environment Programme (UNEP) nd UNOPS, the MPTF’s catalytic approach uniquely responds to local and regional contexts, national investment cases, financing strategies, climate risks and the regulatory enabling environment to build sanitation economies and the menstrual health market.
Focusing squarely on market-based approaches to deliver impact on economies, people and the planet, the MPTF brings together the public and the private to create an enabling environment where investment in sanitation, wastewater management, hygiene and menstrual health is not only incentivized, but thrives.
With its unique blend of UN capability and a dedicated mechanism for catalytic financing for the sanitation economy and menstrual health market, the MPTF aims to unlock social impact in health, education, gender equity and women’s power as well as environmental and economic impact through more inclusive, resilient and sustainable sanitation, wastewater, hygiene and menstrual health markets that deliver increased access and financial returns to investors and countries.
For more information on the UN MPTF for Catalytic Finance in Sanitation, Hygiene and Wastewater, please contact mptfsecretariat@shfund.org
Improving investment readiness
SHF’s catalytic financing seeks to stimulate nascent markets, incentivizing public reform and private investment in sanitation, hygiene and menstrual health.
Since 2022, SHF has been working with a number of countries in Africa, to support the building of national investment cases and market assessments on sanitation, hygiene and menstrual health. Armed with this knowledge, SHF identifies the potential and pipelines for investment and financing with a view to support the development of viable, scalable business models.
Besides working with governmental stakeholders to support the development of key public sector reforms and improve the enabling environment and regulatory framework, SHF works with subnational actors and utilities to improve capacity and conditions for local sanitation investment planning and infrastructure project financing.
At the same time, SHF develops incubation and acceleration programs to improve the investment readiness of early stage enterprises and supports the testing of new business model approaches to reach low income consumers and improve sustainability.
Through catalytic financing, SHF aims to stimulate growth, encourage innovation, and scale successful initiatives. By identifying strategic financial interventions tailored to each country context, SHF achieves sustainable impact.