About

Recognizing the importance of dedicated financing for urban sanitation in Africa, in 2019, the African Development Bank through the African Water Facility with support from Bill and Melinda Gates foundation, spearheaded the creation of the Africa Urban Sanitation Investment Initiative (AUSII).

The objective is to increase the scale and impact of investments in urban sanitation services in Africa, by creating an enabling environment and a variety of financing options, tailored to the needs of the recipient countries, for efficient and sustainable investments from development and commercial finance institutions.

AUSII is being piloted with urban sanitation projects in seven countries – Uganda, Kenya, Zambia, Ghana, Mauritania, Cote d’Ivoire and Togo with a focus on inclusive on-site sanitation, faecal sludge management, development of sanitation masterplans and investment planning. This pilot financing of $8.4 million in developing bankable projects and catalytic investments is expected bring $615 million downstream investment.

AUSII operates as a dedicated urban sanitation financing window of the African Water Facility. The window works with non-reimbursable grants and technical assistance and will further introduce reimbursable grants in the form of commercial and concessional blended finance and guarantees.

Championing a Paradigm Shift in Urban Sanitation

Access to improved sanitation services in Sub-Sahara Africa remains among the lowest in the world. About 52% of the urban population in Sub-Saharan Africa (some 200 million people) do not have basic or improved sanitation facilities. As of 2022, only 30% of the urban population in this region used safely managed sanitation, 18% used basic hygiene services, and 5% still used open defecation. In rural areas, these figures are even lower. As Africa’s cities grow, so does the number of people without sanitation – by more than 10 million each year.

52%
Of the urban population in Sub-Saharan Africa (some 200 million people) do not have basic or improved sanitation facilities.
30%
Of the urban population in this region used safely managed sanitation
18%
Used basic hygiene services
5%
Still used open defecation

The financing gap to reach safely managed sanitation on the continent is huge. The investment costs for financing sanitation for Sub-Saharan Africa is estimated at $69 billion per year. Recent estimates by the WHO/UNICEF indicate that achieving basic sanitation across this region would require on average 1.1% of GDP, and for reaching safe sanitation, 2.5% of GDP. Around 70% of these costs are estimated to be for urban areas.

Business as usual is not going to close the sanitation gap and free up the financial resources needed to provide safely managed sanitation for all. A paradigm shift is required, away from heavy focus on infrastructure investments especially in conventional sewer systems and wastewater plants. 

The African Urban Sanitation Investment Initiative will play an important role as initiator and catalyst that will provide climate-resilient and inclusive sanitation solutions, with a focus on the urban poor. The initiative aims to increase the scale and impact of investments in urban sanitation services and service providers in Africa, by strengthening the enabling environment, catalysing urban inclusive sanitation approaches, and providing blended financing options for efficient and sustainable investments by development and commercial finance institutions. It will contribute to addressing today’s environmental and social challenges, which are a result of a lack of sanitation development in African urban areas. 

The African Water Facility, through AUSII, will play a leading role in addressing the continent’s urban sanitation challenges using its capacities, expertise, and experiences.

AUSII Targets

The AUSII window also acts as a financing and investment initiative and provides both non-reimbursable grant and technical assistance, as well as reimbursable grant in the form of commercial and concessional finance, guarantees and support to access capital market and finance urban sanitation projects. During the first 10 years of operations, AUSII aims to mobilize about $320 million for investments to improve sanitation for people in Africa. It seeks to:

Provide
15 million
people in urban areas in Africa with access to safely managed sanitation services and hygiene
Mobilise
$7 billion
commercial and concessional finance for private and public sector sanitation projects
Prepare
50
sanitation projects and finance them by development partners and/or other partners
Mobilise
10 - 20
financial institutions offering sanitation financing instruments
Mobilise
$30 million
through climate actions financing mechanisms
Capitalise
$30 million
service providers through AUSII

Through the inclusive urban sanitation approach, AUSII will engage African governments, private sector and civil societies to reach the Sustainable Development Goals for urban sanitation and climate change targets.

Mission and Vision
Mission

To increase the scale and impact of investments in urban sanitation services in Africa, by creating an enabling environment and blended financing options for efficient and sustainable investments from development and commercial finance institutions.

Vision

To be the main African urban sanitation fund to catalyze investments in the urban sanitation sector in African countries, helping to meet the challenge set out in the NGOR declaration of the African Ministers’ Council on Water (2015) for universal access to adequate and sustainable sanitation and hygiene services, and end open defecation by 2030.

Governance

AUSII operates within the Governance of the African Water Facility as a dedicated urban sanitation financing window. African Water Facility’s Governing Council decides its general policy and strategic direction. The Governing Council is made up of 13 members appointed by AMCOW, donors to the fund, the African Development Bank, the African Union, and UN-Water/Africa.

AUSII is managed by the African Water Facility with a dedicated team for the Grant and Technical Assistance functions, and with additional support by the African Development Bank. Further, AUSII operations will be supported by in-country program leaders as and when required. 

Donors and Partners

Africa’s water and sanitation sector requires huge public and private investments, alongside governance and operational reforms. The African Water Facility helps to close the financing gap by preparing bankable, investment-ready projects. It also invests in catalytic projects that employ innovative technologies, financing instruments and business-oriented models, with the potential to attract downstream investment.

The success of the AUSII relies on the support of donors, partners, and investors. The window is becoming operational with support from existing donors and partners, and new partnerships.

AUSII will be operationalized with an impact strategy with Grant and Technical Assistance functions for the first two years with focused country operations, and further deploy commercial and concessional finance including blended finance and guarantee products from 2026.

The African Water Facility requires $15 million by the end of 2024 for the initial capitalisation of the African Urban Sanitation Investment Initiative. To date, the initiative has received :

$6 million 
From the Bill & Melinda Gates Foundation for background preparations including diagnostic and policy studies, preparation of master planning, and mapping indigenous Small and Medium Enterprises investors in the urban sanitation sector.
€12 million 
Has been pledged by the Nordic Development Fund (NDF) to kickstart operations.
AUSII will start with an initial target of $30 million for its Grant and Technical Assistance function and gradually grow to $320 million in the first 10 years of operations. 60% of the fund will be revolving.