Aqua for All Opens Second Funding Call for Water and Sanitation Fund Managers

Aqua for All, the Dutch foundation that has backed water and sanitation ventures across 65 countries since 2002, has reopened its search for fund managers willing to deploy catalytic capital into the sector. The call targets asset managers running private debt, private equity, natural capital or infrastructure strategies, with a mandate for water, sanitation and adjacent nexus sectors such as energy and climate in emerging markets.

A second round, built on early results

This is the foundation’s second such call, following an initial round launched a year ago with the Swiss Agency for Development and Cooperation under their joint “Catalysing Impact with Innovative Financing” programme. That first round drew 45 applications from a mix of first-time and established managers, most concentrated in Sub-Saharan Africa and Asia, according to Aqua for All’s own progress update on the initiative. Several of those applicants have since moved into due diligence or final commitment stages, suggesting the organisation is scaling a model it considers to be working rather than starting from scratch.

How the capital is structured

Selected fund managers can access between €1 million and €5 million in equity or first-loss equity, positioned to absorb early risk and draw in private investors who might otherwise stay on the sidelines of a historically under-capitalised sector. A separate pool of up to €150,000 in technical assistance is available alongside the investment, aimed at strengthening fund managers’ impact measurement, gender inclusion and climate strategies rather than simply writing a cheque. Aqua for All has said it is looking for managers with a demonstrated ability to deploy capital effectively in emerging markets in service of Sustainable Development Goal 6, which covers universal access to clean water and sanitation.

Why blended finance matters for African water infrastructure

The approach reflects a broader funding gap that African water and sanitation providers know well. Multilateral estimates put the annual global cost of meeting SDG 6 at over $100 billion, a figure donor and philanthropic funding covers only a fraction of. In Nigeria and much of West Africa, water utilities and small enterprises serving peri-urban and rural communities have long struggled to attract commercial financing, partly because investors view the sector as high-risk with uncertain returns. First-loss capital of the kind Aqua for All is offering is designed to absorb exactly that risk, making it easier for private equity and debt funds to justify a position in water-focused portfolios. Aqua for All’s existing Water Access Acceleration Fund, which counts Danone and BNP Paribas among its backers, is one example of how such blended structures have already drawn private capital into the space.

What fund managers need to qualify

Eligible applicants must be legally registered investment funds or fund managers with a clear mandate to invest in water and sanitation, operating in least-developed or lower- and middle-income countries, and able to show how Aqua for All’s capital would help mobilise additional private investment. Applications are open through an online form until August 31.

For African fund managers weighing where to position climate and infrastructure-linked strategies, the call adds another source of catalytic capital to a sector that continues to lag behind energy and agriculture in attracting institutional interest, despite comparable urgency.