Lack of access to finance is often a critical barrier for service providers planning to expand services to the poor. The challenge is that the local private providers often have difficulty in gaining access to commercial finance. This is because local private providers are considered riskier by many financial institutions. WSP works to lower or eliminate this barrier by mitigating the perceived risks that restrict investments in the local private water and sanitation service providers.
Domestic investment in the water and sanitation sector continues to increase, building on the base of capital already invested in dozens of small and medium-sized enterprises in countries such as Bangladesh, Cambodia, Indonesia, Peru, Kenya, and thePhilippines. Recent increases in private investment also include initiatives such as sanitation market development in Bangladesh and Peru, which provides financing for micro-entrepreneurs in rural villages. These entrepreneurs have seen rapid increases in investments in their businesses.