1. www.wsp.org | www.worldbank.org/water | www.blogs.worldbank.org/water | @WorldBankWater Making Toilets more Affordable for the Poor through Microfinance Lessons learned from introducing microfinance loans for sanitation in rural Cambodia Emily Rand, October 2015 UNC Water and Health

2. Audience Survey 1

3. Thank you 2 Authors Phyrum Kov (World Bank, WSP) Susanna Smets (World Bank, WSP) Adam Newman (Deloitte Consulting) Implementers: Supporters Bill and Melinda Gates Foundation Stone Family Foundation

4. www.wsp.org | www.worldbank.org/water | www.blogs.worldbank.org/water | @WorldBankWater Background

5. 60% of rural Cambodians practice open defecation 4 http://wsp.org/sites/wsp.org/files/images/Gallery-walk-Posters-H-EN.pdf http://www.wssinfo.org/data-estimates/tables/

6. Consumer Research Revealed 77% of Rural Cambodians Considering Constructing a Latrine 5 http://www.wsp.org/sites/wsp.org/files/userfiles/WSP-Demand-Assessment- Cambodia.pdf

7. Preference is for a Pour-flush latrine 6

8. Many Entrepreneurs offering Low-cost Substructure Options of $40 - 45 7

9. Poorest Quintile Low-cost option not affordable for the poorest households? 8 CSES, 2011 households may not be able to pay a toilet at once households could pay for a toilet at once Wealthiest Quintile

10. www.wsp.org | www.worldbank.org/water | www.blogs.worldbank.org/water | @WorldBankWater Pilot

11. Pilot conducted as part of a larger program

12. Experienced Microfinance (MFI) Partners Selected 11 MFI 2011 Annual Reports

13. MFI Loan Application Filled Out at Sales Meeting 12

14. Different MFI Loan Types were Explored 13

15. www.wsp.org | www.worldbank.org/water | www.blogs.worldbank.org/water | @WorldBankWater Results 14

16. Over 2,000 Loans Disbursed 15

17. Financing Enabled the Poorest to Purchase 16

18. Available Credit Option does not Eliminate Cash Sales 17

19. Both MFIs were able to Break-Even 18

20. No Defaults of Delinquent Payment 19

21. www.wsp.org | www.worldbank.org/water | www.blogs.worldbank.org/water | @WorldBankWater Discussion

22. Households Willing to Pay more to Pay Loan Close to Home 21

23. A Dedicated Loan Officer Expedited the Loan 22

24. Close Partnership between MFI and Latrine Business Needed 23

25. Reducing Loan Processing Time Increases Sanitation Uptake 24

26. Are MFI’s willing to continue without external support? Should the cost of superstructure be included? How are the poorest affected? 25

27. www.wsp.org | www.worldbank.org/water | www.blogs.worldbank.org/water | @WorldBankWater For More Information: https://www.wsp.org/sites/wsp.org/files/publications/WSP-Learning- Note-Toilets-Through-Microfinance-Cambodia.pdf http://www.worldbank.org/en/news/video/2015/02/02/integrated- approaches-to-tackling-sanitation-challenges-in-rural-cambodia https://www.wsp.org/sites/wsp.org/files/publications/WSP-Learning- Note-Toilets-Through-Microfinance-Cambodia.pdf http://www.worldbank.org/en/news/video/2015/02/02/integrated- approaches-to-tackling-sanitation-challenges-in-rural-cambodia

28. Similar to Other Studies, Sanitation Demand Increases with Finances 27

29. Saving Groups or Latrine Business Credit were explored 28

30. More Loans Requested than Approved

31. 90% of Customers chose Declining Repayment Method 30