While politics and conflict in developing nations often makes headlines, it is the conditions in which people live that need urgent addressing. Sanitation and clean water are just two of the issues faced by millions of people in developing nations. Access to clean water may be essential, and a ‘given’ in developed nations, but it is rapidly becoming an expensive ‘optional extra’ for poverty-stricken nations around the world. Can the microfinance industry help?
The Cost of Clean Water
It’s more than you think. The World Bank published a study in 2017 noting that for developing nations to reach the Sustainable Development Goal (SDG) of safely managed water by 2030, it would require spending of up to $150 billion per year. Unfortunately, that sum will be born mostly by individuals and small communities, rather than central governments. It’s a cycle that can only be broken by addressing the bigger issues of poverty and access to financial services.
Microfinance Solutions: Empowerment to Eradicate Poverty
Microfinance solutions in developing nations have been structured to provide access to financial services, credit solutions for the unbanked and underbanked, often in rural areas, with products and educational services that can help jumpstart individuals economically. By improving financial wellbeing, people will be able to afford access to basic services, including sanitation, clean water, and even access to the electric grid. More consumers mean more funds to improve and extend these basic services to larger areas.
Microfinance and fintech solutions for developing nations can provide the foundation of private economic empowerment. There is a long way to go and work needs to be done to improve access to microfinance services, but every person that has access to saving programs and credit opportunities is able to provide for their families and to empower their communities.
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