The development and spread of the Coronavirus underlines the fact that water is an essential amenity. One of the key preventive measures implemented across the world to curb the disease is to wash our hands with clean water and soap. Proper sanitation, hygiene and frequent access to clean water is crucial to prevent and contain diseases.
However, many people cannot obtain clean water, and 3 out of 10 people do not have access to safe drinking water. The World Bank estimates that in the African continent alone, around USD 10-15 billion will be needed in order to supply the entire population with safe drinking water and provide basic sanitation service.
Access to clean water is often hindered by poor infrastructure or a lack of financial viability for water utilities er to ensure a consistent supply of high-quality water. Piped water is the most common method to transport water to consumers, but where piped networks are unavailable, people rely on wells or community water supply systems. In some cases, people have to travel for miles to reach the nearest water source. This harsh reality, further underlined by COVID-19, emphasizes the relevance of Incofin’s initiative with Danone to invest in safe water enterprises, water technology companies and piped infrastructure businesses.
Ensuring access to clean water for all communities has always been a critical matter of public health and human rights. The current crisis makes action even more urgent, especially for businesses and private sector solution providers.
By investing in these companies and offering technical assistance, Danone and Incofin are pioneering an investment approach in the water industry and will build on Danone Communities’ experience investing in safe water enterprises since 2007. This will catalyze further growth for the entire water sector.
“We see a vast amount of young emerging water companies in Africa and Asia. Ambitious, innovative entrepreneurs are leading them, driven by the desire to make a tangible impact for the local population. But the capital and know-how needs of these companies are relatively high, clients awareness on the importance of safe drinking water is meanwhile low. The water sector is in a situation comparable with the financial inclusion sector institutions twenty years ago. Just as we did back then, we want to play a catalyst role and help the pioneering water sector achieve a large scale impact and a reasonable return that will attract other investors in the future.”
Loïc De Cannière, Founder and Managing Partner Incofin IM