Congress Resources: Papers, posters and presentations

< Return to abstract list

Strengthening community potential to self finance water infrastructure through Micro credit.

Congress: 2008
Author(s):
Nabalema Carolyne Esther is a social development worker with Katosi Women Development Trust.She holds a masters degree in Development studies and a bachelors degree in education and training.

Keyword(s): microcredit,community,self financing,water,infrastructure
AbstractTo finance Water Infrastructure, funds especially in the Third World should come from a variety of sources, not just from government budgets or donor aid, but also from local sources. Katosi Women Development Trust, a women membership non governmental organization working with rural fishing communities along the Lake Victoria, Uganda is successfully using micro credit to harness local financing mechanisms to increase access to safe water and protect the aquatic environment of Lake Victoria, the 2nd largest fresh water lake in the world. The objectives of using the micro finance strategy is to build and harness the potential of rural populations self finance their water infrastructure to increase access to sustainable safe water through scaling up water infrastructure and promote maximum utilization of water for multiple benefits at household level . The demand driven approach requires organized groups to apply for a water facility including household rain water harvesting tanks for domestic water and group valley tanks to support simple crop irrigation and water for livestock. The few group members who are supported by KWDT to acquire water facilities are then required to pay back the cost of the tank with interest. This creates a pool of funds from which other members of a particular group can attain water facilities. Repayment is done on group basis over specified time period and a deposit of 12% is made prior to construction. This self-financing approach is non profit-centered, relies on the power of social solidarity capitalizing on community organization into groups and requires no collateral from the beneficiary community based women groups. Micro-credit has had a positive impact in scaling up water access through revolving funds which have enabled rural women groups and their households acquire rain water infrastructure to enhance multiple water uses for production and domestic at household level. Micro credit has strengthened KWDT capacity for future financing challenges. With less and less external support from donors, the micro credit programme to community based women groups has enabled KWDT to scale up access to water facilities besides strengthening local capacities to finance water facilities. Micro credit for water facilities is effective through community based groups where coming together of individual members is used for number of purposes such as educating and awareness building on local water management, and multiple productive uses of water at household level. The paper will show the role of micro credit in strengthening the capacity of rural communities to self finance water infrastructure.
2011 IWRA - International Water Resources Association office@iwra.org - http://www.iwra.org - Admin