The challenges: 

  • According to the 2017 World Economic Forum (WEF) report on Global Risks, the environmental concerns are more prominent than ever, out of main risks assessed, water is at top 5 of global risk ranking.
  • Water, Sanitation and Hygiene (WASH) accounts for the second largest negative economic and social externality after climate.
  • Up to date, 40 % of the world’s population is affected by water scarcity; by 2025 expected to escalate to 2/3 of the global population; which will have massive social, political and economic impact on global scale.
  • This affects all sectors, exacerbating the challenge of using water for agricultural and industrial uses, as well as sustainable delivery of WASH.
  • Plastic waste: huge volumes in the world’s water - approximately 8 million more tons every year - is finding its way into humans. Microplastic fibres are found in 83% of the world’s tap water.
  • Waste leakage equivalent to dumping the contents of one garbage truck into the ocean every minute. If no action is taken, this is expected to increase to 2 per minute by 2030 and 4 per minute by 2050.
  • USD 80-120 billion economic loss of USD per year, since 95% of plastic packaging material value is lost.
  • Climate change and bio-energy demands are also expected to amplify the already complex relationship between world development and water demand.
  • Water crises will cause enormous wave of involuntary migration.
  • Overall, the economic damages of poor WASH are enormous and the benefits of improved WASH massive.
  • Yet, the investments in the sector are only 1/3 of what is needed to enjoy the benefits.

Opportunities: TaSF seeks to increase the investments in WASH and its linked sectors (Agribusiness and Renewable Energy) with a focus on Small and Growing Businesses (SGBs.)  SGBs have strong potential for growth - and thus for creating economic, social and environmental benefits. They are very well suited to deliver quality water and sanitation services to the emerging poor, often via de-centralized solutions independently, or in partnership with Government and Non-Profits

WASH as cross-cutting enabler for sustainable development.

  • Addressing waste and sanitation not as a problem, but beyond pollution prevention by using waste as a resource like for (bio)energy or for agricultural purposes (e.g. organic compost or fertilisers); also re-use of plastic waste into products.
  • Sufficient technical solutions are readily available, but local access and knowhow is the bottleneck.
  • Investing US$1 in WASH delivers US$4.3 return and an estimated gain of 1.5% of GDP (WHO, UN-Water Report).
  • Huge market: Demand for (adequate) WASH products and services much higher than current supply. 
  • The majority of small firms will stay small. However, companies with the potential for growth (SGBs) have an outsized impact on GDP and job creation.
  • SGBs can play a much larger role to fill the demand-supply gap, by upscaling existing (proven) businesses or introducing innovative solutions.
  • Various SGBs already provide good solutions, but cannot meet demand and need support to upscale (e.g. access to capital and capacity building).

Impact Investments

TaSF aims to finance and support SGBs that also serve both middle and low income populations. The need for Impact Investment is higher than the supply, but lacking are funds which focus on the WASH and WASTE Sector. Each country will operate through a customized investment strategy to maximize impact.

Investment Philosophy and Strategy: 

Flexible instruments & management & business support.

Investment conditions for SGBs: We aim to provide loans, ranging from 150,000 – 1 million Euros.
TASF has the clear intention to mobilize local finances and will engage with local banks in Africa and Asia aiming for co-investments. 

TASF applies an integrated approach to its investments: Capital and capacity building provision. We have local presence with local teams and building on local partnerships with capacity providers, who help with deal sourcing, pipeline development and post-investment support.

Contribution to developmental Impact

We contribute to Sustainable Development Goals (SDGs) with focus on SDG 6  - ‘Clean Water and Sanitation ’- as cross cutting enabler, and to a more or lesser extent to SDGs depending on type and scope of the investee SGB activities:

  • Strengthening Social License to operate and addressing reputational risk of SGBs.
  • Creating impact and helping autonomous development and business growth.
  • Creating quality employment and better working places.
  • Strengthening the supply chain of basic needs with emphasis on WASH products and services also affordable for low income communities (including the poor), those hard to reach (last mile and beyond) and marginalized people.
  • Changing the waste management cycle through reduction the amount of solid waste going to landfills by recycling/re-use.
  • Improved crop yields resulting from use of fertilizers and soil conditioners.
  • Cleaner environment that helps combat climate change through re-use of waste to provide energy.
  • The Fund would contribute (to a more or lesser extent) to SDG 1, 2, 3, 6, 7, 8, 9 and 11, depending on type and scope of the investee SGB activities.