Community investment can play a pivotal role in addressing water crises like the one in Jackson, Mississippi. By channeling funds into projects that improve water infrastructure, investors can help ensure that residents have access to safe, clean water. 

Community Development Financial Institutions (CDFIs) and other impact-focused financial entities are well-positioned to drive these investments, leveraging their expertise in local development and their commitment to social impact.

Why Invest in Water Infrastructure?

1. Public Health and Safety: Investing in water infrastructure directly impacts public health. Contaminated or inadequate water supply can lead to a host of health issues, particularly for vulnerable populations such as children and the elderly. According to the Centers for Disease Control and Prevention (CDC), waterborne diseases in the United States result in an estimated 7.15 million illnesses each year. By improving water systems, investors contribute to healthier communities and reduce the risk of such diseases.
2. Economic Stability: Reliable water infrastructure is crucial for economic stability and growth. Businesses rely on consistent water supply for their operations, and households need it for daily living. The American Society of Civil Engineers (ASCE) reports that the U.S. economy could lose $10 trillion in GDP and cost each American household $3,300 a year if the U.S. does not close a growing gap in investments needed for infrastructure like water. By supporting water infrastructure projects, investors can help create a more stable economic environment, fostering job creation and economic development.
3. Environmental Sustainability: Investments in modern water infrastructure often include components that promote environmental sustainability. For example, updating aging pipelines can significantly reduce water loss due to leaks. The Environmental Protection Agency (EPA) estimates that U.S. water utilities lose about 14% of their treated water every day due to leaks, amounting to 6 billion gallons. Sustainable water management practices also help conserve water resources, ensuring their availability for future generations.

Community Impact and Investment Potential

Targeted investments in areas with water issues, such as Jackson, MS, not only address urgent infrastructure needs but also enhance community resilience. For instance, CDFIs can facilitate funding for projects that overhaul water treatment facilities, replace old pipes, and install advanced monitoring systems. These projects create jobs, support local economies, and build healthier, more sustainable communities.

In addition to the immediate benefits, these investments can yield significant long-term returns. According to the Value of Water Campaign, every $1 invested in water infrastructure generates $2.62 in the private economy over 20 years. This highlights the dual benefit of community investments: they provide essential services while also driving economic growth.

CNote’s Impact Cash®: Cash Management Solutions Supporting Water Infrastructure

At CNote, we are committed to making impactful investments in community development. CNote’s Impact Cash® solution provides DIs with the capital needed to address critical issues like the Jackson water crisis. 

By partnering with CNote, DIs can access funding to upgrade water infrastructure, improve water quality, and ensure a reliable water supply for their communities. These investments not only address immediate water needs but also promote long-term sustainability and economic growth.

Conclusion

The water crisis in Jackson, Mississippi, is a clear call to action for impact investors and community finance organizations. By investing in water infrastructure, we can address critical public health and safety issues, promote economic stability, and foster environmental sustainability. As we look to the future, targeted community investments will be essential in building resilient, thriving communities nationwide.

Disclaimer: This information should not be relied upon as research, investment or financial advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Investing involves risks, including possible loss of principal.