London Office | 65 Leadenhall Street, London, EC3A 2AD Nairobi Office | CMS-Africa, Pioneer Point, Chania Avenue, Nairobi, Kenya
1. Advancing early-stage successes:
Many early-stage SMEs in the water, sanitation and plastics recycling sector are recipients of concessionary financing from aid agencies and charitable foundations in small amounts, typically aggregating to amounts of US$1 million or less. DFIs and commercial banks are prepared to fund larger investment requirements, often in excess of US$20 million.
SMEs that have proven successful in their abilities to repay smaller obligations, but are unable to service large loans, have traditionally been unable to find financing to match their needs. These SMEs typically have business strategies that, with appropriate use of funds would fit that ‘missing middle,’ will ultimately allow them to access DFI and commercial bank funds.
WUI will, either acting independently or in conjunction with other sources of finance, lend to those SMEs that fit the following criteria:
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Demonstrated success in servicing debt from charitable foundations, aid agencies, or other sources of concessionary capital.
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Presence of well-articulated business plan and financial strategy that explain the progression of financing needs and aspiration to access larger tranches of money.
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Strong corporate governance with experienced senior management.
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Ability to measure the impact of investment in one of WUI’s core focus areas.
WUI will provide some technical assistance to investees throughout the period of investment in order to assist them to reach larger tranches of money post-WUI's investment.
© Adam Dickens | Taking Pictures, Changing Lives
2. Bridging the gap for performance-based results / output-based aid:
Aid agencies and charitable foundations are increasingly emphasising the need to compensate their partners upon demonstration of results (at the end of a program) rather than to provide the needed funding at the outset.
Programs often do not meet their goals due to insufficient capitalisation from the beginning, and the service providers themselves are often frustrated and discouraged in their efforts to cater to the needs of some of the most vulnerable populations.
To combat this challenge, WUI will provide short-term bridge financing to service providers that fit the following criteria:
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Participation in a program with payment based on output / performance.
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Third-party verification of use of funds and tracking towards output / performance goals.
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At least three years’ worth of experience in their respective field.
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Strong corporate governance with experienced senior management.
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Endorsement from the aid agency or charitable foundation.
© Adam Dickens | Taking Pictures, Changing Lives
3. Supporting private providers on PPPs:
Public-private Partnerships (“PPPs”) are increasingly popular in meeting service delivery needs in the water, sanitation and plastics recycling sectors. However, some of the most competitive private providers do not have access to risk-tolerant capital, particularly with sufficiently long tenor to match multi-decade concessions, needed to achieve success and social impact.
As part of the solution, WUI will provide long-term finance to private-sector participants in PPPs that:
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Show that the concession area includes some of the most vulnerable communities in a particular jurisdiction and allows for cross-subsidisation.
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Demonstrate financial viability over a long period of time.
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Are located in countries with favourable approaches to PPPs.
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Offer examples of success sufficient to encourage replication in developing countries.
WUI is actively seeking investees who are working in one of the impact areas of interest that also fit into one of the three investment strategies. If you feel you meet the criteria of one of these categories and are actively furthering SDG 6, 12 or 14, please contact us.
© Adam Dickens | Taking Pictures, Changing Lives
Impact Created
WUI is targeting investments that contribute towards Sustainable Development Goals (SDGs):
Impact generated through investment will be measured and reported, in line with international best practices.
If you are interested in being a potential co-investor or wish to refer an investee to us, please contact us.