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Catalytic financing

SHF achieves scale by making its grants work harder for every dollar invested. This catalytic approach seeks to unlock the resources of multilateral and national development banks, finance institutions, impact investors and governments to enable the private sector to build  national sanitation economy and menstrual health and hygiene market ecosystems.

SHF catalytic financing seeks to stimulate nascent markets, incentivizing public reform and private investment in sanitation, hygiene and MHH sectors and contributing to the reduction of social and economic inequality in low- and middle-income countries (LMICs). 

Besides working with governmental stakeholders to support the development of key public sector reforms to improve the enabling environment and regulatory framework, SHF works with subnational actors and utilities to improve capacity and conditions for local sanitation investment planning and infrastructure project financing. At the same time, SHF develops incubation and acceleration programmes to improve the investment readiness of early stage enterprises and support testing new business model approaches to reach low income consumers. Moreover, SHF aims to incentivise local currency financing for S&H and MHH purposes by partnering with local financial institutions in priority countries and deploying grant funding as catalytic financing instruments as part of tailored loan facilities. Finally, SHF explores partnering opportunities with thematically aligned blended impact funds/facilities and seeks to leverage capital including from development finance institutions and impact investors based on improved investable propositions in the longer-term

All of our work has a gender lens and contributes to more women having voice and participating in the sanitation economy and menstrual hygiene marketplace.  

SHF works with its partners to measure and magnify impact, demonstrating return to taxpayers, shareholders, boards and investors.  

Together we aim to demonstrate that the menstrual hygiene marketplace and the sanitation economy are viable entry points for advancing climate, gender equality and diversity goals, supporting sustainability, and Environmental, Social and Governance (ESG) stewardship.

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Photo credit: Geraldine Deblon/SHF.