| | 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

Audience Survey 1

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

| | Background

60% of rural Cambodians practice open defecation 4

Consumer Research Revealed 77% of Rural Cambodians Considering Constructing a Latrine 5 Cambodia.pdf

Preference is for a Pour-flush latrine 6

Many Entrepreneurs offering Low-cost Substructure Options of $

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

| | Pilot

Pilot conducted as part of a larger program

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

MFI Loan Application Filled Out at Sales Meeting 12

Different MFI Loan Types were Explored 13

| | Results 14

Over 2,000 Loans Disbursed 15

Financing Enabled the Poorest to Purchase 16

Available Credit Option does not Eliminate Cash Sales 17

Both MFIs were able to Break-Even 18

No Defaults of Delinquent Payment 19

| | Discussion

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

A Dedicated Loan Officer Expedited the Loan 22

Close Partnership between MFI and Latrine Business Needed 23

Reducing Loan Processing Time Increases Sanitation Uptake 24

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

| | For More Information: Note-Toilets-Through-Microfinance-Cambodia.pdf approaches-to-tackling-sanitation-challenges-in-rural-cambodia Note-Toilets-Through-Microfinance-Cambodia.pdf approaches-to-tackling-sanitation-challenges-in-rural-cambodia

Similar to Other Studies, Sanitation Demand Increases with Finances 27

Saving Groups or Latrine Business Credit were explored 28

More Loans Requested than Approved

90% of Customers chose Declining Repayment Method 30