PSI has made a commitment to unlock domestic financing, including mobilizing consumers’ own dollars.
When Sudhir got married, he and his wife didn’t have a toilet in their home. They would relieve themselves outdoors, covering the waste with ash. “I worried that my wife would be bitten by a snake, or that there would be flooding,” he recalls.
Wanting to support his new bride, Sudhir found a job with PSI as a sanitation solution provider in Patna, Bihar. He joined as part of the Supporting Sustainable Sanitation Improvements (3SI) project. 3SI facilitated the sanitation market by building demand and enabling supply of toilets in Bihar, where 80% of households lacked them.
Each day, Sudhir traveled on his bike along a dusty road, heading to neighboring villages to show how a family could get their own toilet.
Most families in Bihar don’t have the resources to build a toilet, so PSI created a system of microfinance loans, helping families build affordable sanitation systems.
With an initial donation of $1.2 million from the Bill & Melinda Gates Foundation and Unilever, PSI partnered with Friends of Women World Bank to lend this initial money to microfinance institutions, who then loan directly to families or businesses to build toilets. With each step of the loan process, the initial donation accrues more interest. Additionally, as families pay back their loans, other families can be helped. There is then no need for additional foreign capital.
After working as a sanitation solution provider, Sudhir realized he could afford a toilet. “My wife said we needed to prioritize building one so we’d have a home to be proud of,” Sudhir said.
Sudir and his wife invited his neighbors to learn about his new purchase. “Now everyone in my village has a toilet.” says Sudhir with a proud grin.
The couple has three young children now. They’re all potty trained—using the new toilet, of course.
With contribution from Maria Dieter, Coordinator, External Relations & Communications, PSI
