African Development Bank Institutional Grant: Strengthening WASH Governance and Financial Management in Secondary Cities

The African Development Bank (AfDB) has announced an institutional grant specifically designed to strengthen water, sanitation, and hygiene (WASH) governance and financial management in secondary cities across Africa. Secondary cities—urban areas with populations typically between 100,000 and 1 million—are experiencing rapid population growth but often lack the institutional and financial capacity to provide adequate WASH services. This grant, part of the African Water Facility (AWF) and the Rural Water Supply and Sanitation Initiative (RWSSI), aims to bridge that gap by funding projects that enhance local governance structures, improve financial sustainability, and promote inclusive service delivery. The total funding envelope per project is expected to range from $500,000 to $2 million, with a mandatory co-financing requirement of at least 25% from the applicant or partners. The deadline for submissions is August 1, 2026, and the call is open to a wide range of entities, including local governments, utilities, NGOs, and research institutions. The grant is aligned with the AfDB's High 5 priorities—particularly 'Improve the Quality of Life for Africans'—and contributes to the Sustainable Development Goals (SDGs), notably SDG 6 (Clean Water and Sanitation), SDG 5 (Gender Equality), and SDG 11 (Sustainable Cities and Communities). One of the key features of this grant is its emphasis on governance and financial management as the bedrock for sustainable WASH services. The AfDB recognizes that many secondary cities suffer from weak tariff structures, high non-revenue water, and lack of accountability, which hinder service quality and expansion. Therefore, projects must demonstrate a clear plan to address these issues, whether through regulatory reforms, capacity building, or financial innovations. Additionally, climate resilience and gender equality are cross-cutting themes that must be integrated into all project components. For example, projects could promote climate-adaptive infrastructure, such as rainwater harvesting or decentralized wastewater treatment, and ensure that women and girls have a voice in decision-making. The AfDB also encourages the use of digital technologies for monitoring and evaluation, billing, and customer engagement. This grant is highly competitive, and applicants must present a compelling case for why their city and approach deserve funding. GSLI, the Global Strategic Leadership Institute, offers a suite of courses that can help applicants strengthen their proposals and build the capacities needed for successful implementation. Courses in WASH, financial management, project management, monitoring and evaluation, and proposal writing are particularly relevant. By partnering with GSLI, applicants can demonstrate their commitment to capacity building and increase their chances of securing this transformative funding.

Strategic Overview

Who is it For?

This grant is designed for a wide array of entities operating in secondary cities across AfDB member countries. Primary eligible applicants include local government authorities (municipalities, city councils, water and sanitation utilities), national and sub-national government agencies responsible for WASH, non-governmental organizations (NGOs) with proven expertise in WASH service delivery, research and academic institutions focusing on water governance, and private sector entities (e.g., water service providers, consulting firms) that partner with public institutions. Consortia comprising multiple stakeholders are strongly encouraged, as they demonstrate a collaborative approach. The target secondary cities are those with populations typically ranging from 100,000 to 1 million inhabitants, which often suffer from inadequate WASH infrastructure, limited technical capacity, and weak financial management systems. Applicants must have a registered legal status in an eligible African country, with at least three years of operational experience in the WASH sector. They must present evidence of previous project implementation, including financial audits and performance reports. Additionally, applicants should demonstrate a clear understanding of the local WASH governance landscape, including regulatory frameworks, tariff structures, and institutional arrangements. The AfDB also prioritizes projects that empower women and youth, address climate resilience, and foster private sector participation. Therefore, entities that have a track record in these areas will be viewed favorably. GSLI recommends that applicants form strategic partnerships with technical service providers, such as engineering firms or management consultancies, to bridge capacity gaps. The applicant's governance structure must be transparent, with clear accountability mechanisms. For NGOs, registration with the relevant national authority and compliance with local tax laws are mandatory. Overall, the grant seeks to strengthen the entire WASH ecosystem in secondary cities, so applicants must be positioned to drive systemic change rather than isolated interventions.

Priorities

The African Development Bank's investment priorities under this grant are deeply interwoven with its High 5 agenda and the broader Sustainable Development Goals (SDGs), particularly SDG 6 (Clean Water and Sanitation), SDG 5 (Gender Equality), and SDG 11 (Sustainable Cities and Communities). The AfDB prioritizes projects that demonstrate a clear pathway to improving WASH governance—meaning enhanced regulatory frameworks, transparent decision-making, and community participation. Financial management is a critical focus: the donor seeks to instill financial sustainability through cost-recovery mechanisms, efficient tariff structures, reduced non-revenue water, and improved billing and collection systems. Projects should also aim to attract private investment and explore public-private partnerships (PPPs). Climate resilience is another key priority; proposals must incorporate climate-adaptive infrastructure, such as flood-resistant sanitation systems or water-efficient technologies. Gender equality and social inclusion are cross-cutting: applicants must outline how the project will benefit women, girls, and vulnerable groups, including through gender-sensitive WASH facilities and female participation in governance bodies. The AfDB also emphasizes innovation, encouraging the use of digital solutions for monitoring, smart metering, and data-driven decision-making. Key performance indicators (KPIs) include the number of people gaining access to improved water and sanitation services, the reduction in waterborne diseases, the percentage increase in cost recovery, and the number of policies or regulations developed. Additionally, the donor values projects that can be scaled up or replicated in other secondary cities. Projects that align with national WASH strategies and regional integration efforts (e.g., transboundary water management) will score higher. The AfDB expects a clear results framework with baseline data, targets, and a monitoring plan. GSLI courses in Monitoring & Evaluation and Project Management for Development can help applicants design robust M&E systems that align with donor expectations.

Eligibility

Eligibility criteria are stringent to ensure that only capable and accountable entities receive funding. First, the applicant must be a legally registered entity (government agency, NGO, utility, or research institution) in an African Development Bank member country. The organization must have been operational for at least three years, demonstrated by audited financial statements for the past two fiscal years, with no significant qualifications from the auditor. The project must be implemented in one or more secondary cities (population 100,000–1,000,000) in an eligible country; a list of eligible countries is available on the AfDB website. The grant requires a minimum co-financing of 25% of the total project cost. This co-financing can come from the applicant's own resources, other donors, or in-kind contributions (e.g., staff time, office space). However, in-kind contributions are capped at 10% of the total budget. The project duration should be between 24 and 48 months, with clear milestones and deliverables. The applicant must not have any outstanding debts or legal disputes with the AfDB or other development partners. Additionally, the project must not duplicate existing AfDB-funded initiatives in the same geographic area. Environmental and social safeguards are mandatory: projects must undergo a preliminary environmental and social impact assessment (ESIA) if high-risk, or at least a screening. The AfDB also requires adherence to its procurement guidelines and anti-corruption policies. For NGOs, proof of registration with the national NGO coordination body, tax compliance certificates, and a governance manual are required. For government agencies, a letter of no-objection from the Ministry of Finance or equivalent is necessary. For utilities, a valid operating license and proof of financial viability (e.g., positive operating ratio) must be submitted. Applicants that previously received AfDB grants must have fully complied with reporting obligations. GSLI recommends that applicants conduct a thorough internal audit before applying, and consider enrolling in GSLI's Grants Management and Financial Management for NGOs courses to strengthen their eligibility profiles.

Path to Success

To secure this grant, applicants must follow a strategic roadmap that integrates GSLI's capacity-building resources. Step 1: Pre-Application Assessment and Capacity Building (Months 1-3). Begin by conducting a comprehensive institutional assessment to identify gaps in governance, financial management, and technical WASH expertise. Engage in GSLI's 'Financial Management for NGOs' course to strengthen budgeting, internal controls, and audit readiness. Simultaneously, enroll key staff in 'WASH (Water, Sanitation, and Hygiene)' and 'Project Management for Development' courses to align project design with donor expectations. Use this period to form a consortium with complementary partners, such as a financial management firm and a local utility. Step 2: Proposal Development with Expert Input (Months 4-6). Develop the full proposal, focusing on the project's theory of change, results framework, and budget. GSLI's 'Writing Winning Proposals' course provides step-by-step guidance on crafting compelling narratives, logical frameworks, and budget justifications. Ensure that the proposal integrates climate resilience, gender equality, and sustainability from the outset. Include a detailed risk assessment and mitigation plan. Step 3: Pre-Submission Quality Assurance (Month 7). Before submission, conduct a thorough review using GSLI's 'Grants Management' course to check compliance with AfDB guidelines. Verify that all eligibility documents (e.g., audited statements, registration certificates) are up-to-date. Engage an external reviewer with AfDB grant experience. Submit the proposal well before the August 1, 2026 deadline. Step 4: Post-Submission Engagement and Award Preparation (Months 8-10). After submission, prepare for potential negotiations: anticipate requests for additional information or clarification. GSLI's 'Procurement & Supply Chain' course helps ensure that procurement plans are in line with AfDB rules. If awarded, initiate project activities immediately, using GSLI's 'Monitoring & Evaluation (M&E)' course to set up baseline data collection and reporting mechanisms. Throughout this process, maintain regular communication with the AfDB focal point. GSLI's 'Fundraising & Resource Mobilization' course can also help identify co-financing opportunities early. By integrating GSLI training at each stage, applicants demonstrate commitment to capacity building and increase their likelihood of success.

Recommended GSLI Courses

WASH (Water, Sanitation, and Hygiene)
Financial Management for NGOs
Monitoring & Evaluation (M&E)

Deadline: 2026-08-01

Persona: General

Urgency: Normal