Franchise Impact Solutions Facility Expands Jibu’s Social Franchising Network across East Africa backed by Aqua for All
Empowering Entrepreneurs to Deliver Safe Drinking Water to Underserved Communities
Photo courtesy of Jibu Co.
The Franchise Impact Solutions Facility (FISF) was established to provide affordable and sustainable financing solutions for social franchising companies, focusing on empowering entrepreneurs in emerging markets. Among its key partners, Jibu Co. operates a unique social franchise model that delivers safe, affordable bottled drinking water through locally owned franchises across East Africa.
FISF uses a pioneering sale-leaseback model to help expand Jibu’s franchise network. Through this model, FISF purchases water filtration equipment and leases it back to local franchisees, effectively lowering the financial barriers to entry. This not only provides Jibu with the capital to grow its operations but also enables aspiring entrepreneurs to establish their own businesses, offering clean, affordable drinking water to communities that need it most.
Aqua for All’s Strategic Contribution
Aqua for All played a crucial role in FISF’s success by providing a catalytic grant, disbursed in five installments between July 2021 and August 2024. The grant was contingent upon the participation of other investors, and its receipt played a pivotal role in attracting investors and covering FISF’s startup and operational costs for the sale-leaseback funding arrangement, which is expected to continue at least through 2028.
In 2021, the grant helped cover startup expenses, staff salaries, and legal fees, laying the groundwork for FISF’s sale-leaseback model. Over the next three years, Aqua for All’s continued support financed partial staff costs, allowing FISF to scale its operations and manage its growing portfolio of Jibu’s water filtration equipment units. By 2024, the grant fully covered staffing costs, ensuring the smooth operation of its expanding reach across multiple African countries.
Key Milestones
Since its inception in 2021, FISF has reached key milestones in supporting Jibu’s expansion. In the first year, FISF leveraged senior and subordinated debt from the US Development Finance Corporation (DFC) and Jibu to purchase 55 water filtration units in Rwanda and Uganda. This initial investment laid the foundation for Jibu’s growing franchise network.
FISF continued to expand in 2022, purchasing 13 additional filtration units across Uganda and Rwanda. By May 2023, 19 more units were added, bringing the total number of franchises to 87 and successfully expanding into Kenya and the Democratic Republic of the Congo (DRC). In August 2024, FISF purchased 15 more water filtration units, bringing the total number of franchises to 102 and mobilizing a total of $1.62 million to advance Jibu’s mission of providing safe, affordable drinking water across East Africa.
A Transformational Impact
Photo courtesy of Jibu Co.
From October 2021 to June 2024, FISF supported Jibu franchises in selling over 243 million liters of clean water, reaching an estimated 3.3 million customers across Rwanda, Uganda, Kenya, and the DRC. This effort has created 527 direct jobs and 874 indirect jobs, with 27 women-led franchises. Each franchise sells an average of 3,600 liters of water daily, significantly improving health and well-being in the communities they serve.
The success of FISF’s financing model, combined with Aqua for All’s vital support, has enabled Jibu to scale its impact, empowering local entrepreneurs and transforming lives by providing essential access to clean water in underserved regions.
By continuing to build on this impactful partnership, FISF and Jibu are poised to make an even greater difference in the years to come, advancing social franchising as a powerful model for sustainable development across East Africa and beyond.