Approach
Building institutional credibility
Large-scale investment in public services flows to nations and institutions that are credible – ones that demonstrate financial discipline, manage assets responsibly and deliver reliably for citizens.
Building credible institutions means working simultaneously across all the components of a functioning system: governance that is clear and accountable, regulation that is consistent and enforceable, service providers with the data and management tools to operate efficiently, and fiscal frameworks that make costs visible and recoverable. Weakness in one undermines all the others. That’s why we work across the whole system – and beyond.
The evidence that this approach works is growing. In Benin, aligned institutional reforms enabled a €500 million SDG-linked Eurobond and major development finance investment – one of Africa's most significant water financing milestones. In Uganda, it's National Water and Sewerage Corporation expanded its network from 8,100 to over 19,000 kilometres, backed by sustained political commitment and a rigorous professionalisation agenda.
The numbers are significant. Analysis by the African Union's High-Level Panel on Water Investments shows that strong sector governance and domestic finance can generate nearly $30bn a year across Africa – significantly exceeding bilateral aid and philanthropic funding combined. What’s missing is institutional credibility. Building that – not chasing more money – is where we focus our energy.
We work alongside governments and service providers to build those capabilities, and alongside financiers and development partners to ensure the investment environment keeps pace. The goal is institutions that sustain themselves: credible because they have earned it.
Resources
The intellectual foundations of this approach – including the evidence from Benin, Uganda and beyond – are set out in this analysis of institutional credibility and public finance in the water sector. The broader case for what investment-ready service delivery institutions look like is documented in Supporting Rural Water Supply: Moving Towards a Service Delivery Approach. The most complete and recent account of how to mobilise finance once those foundations are in place is Mobilising Finance for WASH: Getting the Foundations Right. For the full institutional architecture across all nine building blocks, Building Strong WASH Systems for the SDGs provides the framework.
