Design long-term financial viability of any partnership beyond initial funding

Posted on September 30, 2019 by Karina de Souza

Authoring Organizations:	Pacific Institute
Consulting Organizations:	Anheuser-Busch InBev Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Universal:	No
Applicable Phases:	Assess
Last Updated	Apr 23, 2024

Overview

Designing the long-term viability of the partnership beyond initial funding requires specific investment in partnership development. This long-term focus is as important as achieving the project objectives. When designing the start of the partnership, envision how the organisation will sustain itself beyond the initial grant timeline.

Benefits

Without investment in partnership and partner development, the initiative is unlikely to be self-sustaining once the initial funding is ended. If the project results in an unsustainable outcome that does not continue beyond the extent of the initial project plan, the partnership may shift away from its original purpose as partners pursue other funding. The partnership may even dis-integrate altogether.

Guidance

• To ensure long-term financial viability, partners must consider innovative means to attract funding. Funding possibilities may include ring-fenced mechanisms that can be carefully audited (for example, if funding is being provided to the public sector).
• Seek input from private sector partners to help ensure sound business principles are applied within the partnership.
• Engage with financing institutions including the national finance ministry. These institutions are funding experts and can offer more relevant insight than a government ministry focussed solely on water or environment.
• Consider social entrepreneurship strategies to fund the maintenance of the project.

Example

In Zambia, Lusaka Water Security Initiative (LuWSI) developed an investment and action plan during the initial partnership phase so that investor-ready concept notes were available once the initial grant was completed. These concept notes were used to access finance for continued projects within LuWSI. Because partnership development took place throughout the initial partnership phase, the stakeholders are motivated to continue with projects identified within the investment and action plan.