African Development Bank (AfDB) Grant: Institutional Capacity Building for Water and Sanitation Service Delivery in Secondary Cities

This grant opportunity from the African Development Bank represents a strategic investment in the institutional fabric of secondary cities across Africa. Secondary cities, often defined as urban centers with populations between 50,000 and 500,000, are experiencing rapid growth but lack the infrastructure and institutional capacity to provide basic services. The AfDB's initiative focuses on strengthening the skills, systems, and structures of local governments, water utilities, and community organizations to improve water and sanitation service delivery. The grant aims to address systemic weaknesses such as inadequate financial management, lack of technical expertise, poor asset management, and weak governance. By focusing on capacity building rather than just infrastructure, the AfDB aims to create lasting change that can sustain service improvements beyond the grant period. The call is open to a wide range of entities, including government agencies, NGOs, and private sector organizations, as long as they meet the eligibility criteria. The deadline of August 30, 2026, provides a realistic timeline for thorough proposal development, involving stakeholder consultations, needs assessments, and partnership formation. The total funding is expected to be substantial, with individual grants varying based on project scale. The AfDB encourages innovative approaches, including the use of digital technologies for monitoring and training. The overarching goal is to contribute to SDG 6 and the African Union's Agenda 2063 by improving access to safe water and sanitation for millions of people. This overview sets the stage for a detailed exploration of the strategic value, implementation roadmap, and support available from GSLI. The call is part of the AfDB's broader WASH strategy, which emphasizes institutional capacity as a cornerstone for infrastructure investments. The Bank has recognized that previous infrastructure projects often faced sustainability issues due to weak local capacities. Hence, this grant specifically targets the 'software' aspects of service delivery, including human resources, financial systems, and organizational processes. The secondary city focus is strategic because these cities are often ignored in favor of capitals, yet they are engines of regional economic growth and home to a significant portion of the urban population. The AfDB has identified several priority countries and cities, which will be listed in the full call document. Applicants are encouraged to align their proposals with national water and sanitation policies and to collaborate with local government authorities to ensure ownership. The grant also requires an integrated approach that considers water and sanitation alongside related issues such as waste management and hygiene. In addition to the financial support, the AfDB will provide technical assistance through its regional offices and partner organizations. Successful proposals will demonstrate a clear understanding of the local context, a well-defined theory of change, and realistic implementation plans. The overview emphasizes that this is not just a funding opportunity but a chance to be part of a transformative movement toward sustainable urban water and sanitation in Africa.

Strategic Overview

This grant opportunity from the African Development Bank represents a strategic investment in the institutional fabric of secondary cities across Africa. Secondary cities, often defined as urban centers with populations between 50,000 and 500,000, are experiencing rapid growth but lack the infrastructure and institutional capacity to provide basic services. The AfDB's initiative focuses on strengthening the skills, systems, and structures of local governments, water utilities, and community organizations to improve water and sanitation service delivery. The grant aims to address systemic weaknesses such as inadequate financial management, lack of technical expertise, poor asset management, and weak governance. By focusing on capacity building rather than just infrastructure, the AfDB aims to create lasting change that can sustain service improvements beyond the grant period. The call is open to a wide range of entities, including government agencies, NGOs, and private sector organizations, as long as they meet the eligibility criteria. The deadline of August 30, 2026, provides a realistic timeline for thorough proposal development, involving stakeholder consultations, needs assessments, and partnership formation. The total funding is expected to be substantial, with individual grants varying based on project scale. The AfDB encourages innovative approaches, including the use of digital technologies for monitoring and training. The overarching goal is to contribute to SDG 6 and the African Union's Agenda 2063 by improving access to safe water and sanitation for millions of people. This overview sets the stage for a detailed exploration of the strategic value, implementation roadmap, and support available from GSLI. The call is part of the AfDB's broader WASH strategy, which emphasizes institutional capacity as a cornerstone for infrastructure investments. The Bank has recognized that previous infrastructure projects often faced sustainability issues due to weak local capacities. Hence, this grant specifically targets the 'software' aspects of service delivery, including human resources, financial systems, and organizational processes. The secondary city focus is strategic because these cities are often ignored in favor of capitals, yet they are engines of regional economic growth and home to a significant portion of the urban population. The AfDB has identified several priority countries and cities, which will be listed in the full call document. Applicants are encouraged to align their proposals with national water and sanitation policies and to collaborate with local government authorities to ensure ownership. The grant also requires an integrated approach that considers water and sanitation alongside related issues such as waste management and hygiene. In addition to the financial support, the AfDB will provide technical assistance through its regional offices and partner organizations. Successful proposals will demonstrate a clear understanding of the local context, a well-defined theory of change, and realistic implementation plans. The overview emphasizes that this is not just a funding opportunity but a chance to be part of a transformative movement toward sustainable urban water and sanitation in Africa.

Who is it For?

This grant is targeted at a diverse range of actors involved in water and sanitation service delivery in secondary cities. Eligible entities include local government authorities (municipalities, city councils), water and sanitation utilities (both public and private), community-based organizations (CBOs), non-governmental organizations (NGOs), academic and research institutions, and private sector companies with a proven track record in the sector. Priority will be given to organizations that can demonstrate a clear mandate to operate in the water and sanitation sector, have a physical presence in the target secondary cities (preferably in Africa), and exhibit strong governance structures. Applicants must also show evidence of previous experience in capacity-building initiatives, preferably in water and sanitation or related infrastructure sectors. The AfDB encourages consortium applications that bring together complementary expertise, such as a local utility partnering with an international NGO and a research institute. Micro, small, and medium-sized enterprises (MSMEs) are also eligible, provided they have the necessary technical and financial capacity. Organizations must be legally registered in an African Development Bank member country, with a valid registration certificate and audited financial statements for at least the last two years. Additionally, applicants should have no history of fraud, corruption, or non-compliance with donor requirements. The grant specifically excludes individuals, political parties, and religious organizations not engaged in development activities. It is crucial for applicants to carefully review the eligibility criteria outlined in the call document to ensure full compliance before submitting a proposal.

Priorities

The African Development Bank's priorities for this grant revolve around enhancing institutional capacity to ensure sustainable water and sanitation services in secondary cities. Key priorities include: 1) Strengthening the technical skills of local staff in areas such as water treatment, network management, and sanitation facilities operation; 2) Improving financial management and accountability of utilities and local governments to ensure cost recovery and long-term viability; 3) Promoting community engagement and behavior change for hygiene and water conservation; 4) Integrating climate resilience into water and sanitation planning to mitigate the impacts of climate change; 5) Leveraging digital technologies for monitoring, data collection, and service delivery optimization; 6) Fostering partnerships and knowledge sharing among stakeholders to create a network of best practices. Performance indicators (KPIs) that the AfDB will use to measure success include: the number of staff trained and certified in water and sanitation management, the percentage of households with access to improved water and sanitation facilities in target cities, the reduction in non-revenue water (NRW) levels, the improvement in bill collection efficiency, and the establishment of functioning asset management systems. The AfDB also emphasizes gender equality and social inclusion, expecting projects to address the specific needs of women, children, and vulnerable groups. Alignment with national development plans and SDG 6 targets is another priority. The grant aims to foster an enabling environment for private sector participation and to catalyze additional investments from other sources, including bilateral donors and development finance institutions. These priorities reflect the AfDB's overarching goal of promoting inclusive and sustainable growth in Africa by addressing the critical infrastructure gap in secondary cities.

Eligibility

Eligibility for this grant is determined by a comprehensive set of criteria covering financial, spatial, and corporate legal aspects. Financially, applicants must demonstrate sound financial health with audited financial statements for the last two fiscal years, showing a positive net worth and adequate liquidity. They must have a clear financial management system with internal controls and procurement procedures that align with the AfDB's guidelines. The organization's annual budget should be commensurate with the proposed grant amount, indicating the capacity to manage funds effectively. Spatially, the project must be implemented in secondary cities identified by the AfDB as priority areas. These cities typically have populations between 50,000 and 500,000 and are experiencing rapid urban growth but lack adequate water and sanitation infrastructure. Applicants must provide evidence of their legal registration and operational presence in the country where the project will be implemented. Corporate legal requirements include a valid registration certificate, articles of incorporation, and a board of directors with clear governance policies. The organization must not have any conflicts of interest or legal proceedings related to corruption, fraud, or ethical misconduct. Additionally, applicants must submit a detailed organizational profile, including the mission, vision, and track record in water and sanitation capacity building. The AfDB also requires a self-assessment of institutional capacity gaps that the grant will address. For NGOs and CBOs, proof of non-profit status and references from previous donors are necessary. Private sector entities must demonstrate corporate social responsibility and commitment to development outcomes. The eligibility audit also extends to the project's environmental and social impact, ensuring compliance with the AfDB's Integrated Safeguards System (ISS). Applicants must provide a preliminary environmental and social management plan (ESMP) as part of the proposal. Overall, meeting these eligibility criteria is a rigorous process that demands thorough documentation and strategic alignment with the AfDB's priorities.

Path to Success

To secure this AfDB grant and achieve maximum impact, GSLI recommends a strategic roadmap in four steps, integrating our specialized training courses to strengthen your proposal. Step 1: Conduct a comprehensive institutional capacity needs assessment in your target secondary city. This involves mapping current water and sanitation service levels, identifying gaps in technical, financial, and managerial capacity, and engaging local stakeholders. GSLI's 'WASH (Water, Sanitation, and Hygiene)' and 'Monitoring & Evaluation (M&E)' courses will equip your team with the skills to design effective assessment tools and analyze data to define clear priorities. Step 2: Design a results-oriented capacity-building program that addresses identified gaps. Use the assessment findings to develop training modules, mentoring initiatives, and infrastructure improvement plans. Our 'Project Management for Development' and 'Financial Management for NGOs' courses will help you structure a project with logical frameworks, risk management plans, and budgeting aligned with AfDB requirements. Step 3: Build a strong consortium and write a compelling proposal. Partner with local utilities, research institutions, and community organizations to demonstrate multi-stakeholder collaboration. GSLI's 'Writing Winning Proposals' and 'Grants Management' courses provide step-by-step guidance on articulating your theory of change, highlighting sustainability, and meeting all submission criteria. Step 4: Implement with excellence and plan for scale. Upon award, use GSLI's 'Procurement & Supply Chain' and 'Fundraising & Resource Mobilization' courses to ensure transparent procurement and leverage the grant for additional funding. Throughout the process, engage GSLI as a strategic partner for training and technical assistance, amplifying the credibility of your proposal. By systematically building your team's expertise through these courses, you not only increase the likelihood of grant approval but also ensure effective implementation and long-term impact, positioning your organization as a leader in water and sanitation service delivery.

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Deadline: 2026-08-30

Persona: General

Urgency: Normal