Ensuring Affordable Sanitation in Rural Communities through Alternative Financing
27 July 2026
In Samien Amobokona village, Central Ethiopia, improving household sanitation has long presented significant financial challenges for rural residents. To address this barrier, COWASH IV, in collaboration with the local community and VisionFund Microfinance Institution, established an alternative financing model. In the Ethiopian Fiscal Year 2017, COWASH IV facilitated the formation of a 26-member Saving and Loan Association (SLA) in the village. The group enables members to save regularly and take turns funding basic construction for improved latrines.
To enable members to purchase plastic slabs, the initiative integrated a microfinance mechanism with VisionFund. Under this model, an SLA member saves thirty percent of the cost of a plastic slab (ETB1,100/€6) in a VisionFund account. VisionFund pays a local sanitation supply and water scheme maintenance Medium and Small Enterprise directly for the slab, and the member collects and installs it. The remaining loan amount is repaid by the member over the course of one year.
Through this collaborative approach, half of the initial group’s households have successfully constructed improved latrines using the plastic slabs. Building beyond Samien Amobokona, the COWASH IV Community-managed Project Approach Advisor and the Woreda Health Office are working with VisionFund to scale the model across additional villages.
This initiative is part of the project’s broader national effort. To date, COWASH has established more than 400 SLAs across the eight regions where it operates, enabling communities to construct their own improved household latrines. The project facilitates the establishment of these groups and provides the necessary training to ensure their long-term sustainability. Experience shows that once all group members finalize constructing their improved latrines, many groups continue their savings and shift focus to other WASH services, such as bringing tap water to their homes or installing solar power at community water points.
To further strengthen the supply chain, COWASH IV has established 26 Market-Based Sanitation Centers (MSCs) in collaboration with regional governments. These MSCs supply sanitation materials and maintain water schemes. By integrating SLAs with MSCs, COWASH IV is working to improve both the affordability and accessibility of sanitation materials, ensuring that SLA members can easily obtain and afford construction materials as well as sanitation supplies. Through this comprehensive approach, COWASH IV is working to ensure long-term sustainability and improved sanitation and hygiene practices.