IFC - Safe Water for All Harnessing the Private Sector to Reach the Underserved, 2009
Campbell, Dan
Thanks to Elizabeth Younger of the Hygiene Improvment Project who notified us of this interesting report. Below is the link to the full-text.
----------------------------------------------------------------------------------------------------------------
Safe Water for All Harnessing the Private Sector to Reach the Underserved, 2009.
"In this report, we examine a range of technologies and revenue models intended to increase safe-water access among lower-income populations, with primary attention on East Africa, India, and China as important emerging markets."
EXECUTIVE SUMMARY ..........................................................................................................................................1
BACKGROUND .........................................................................................................................................................4
SECTOR OVERVIEW .................................................................................................................................................5
Safe-water access needs to be significantly improved ............................................................................................5
Waterborne diseases cause significant social and economic burdens .....................................................................6
Safe-water technology is effective; so, why isn’t it more widespread? ...................................................................7
The safe-water market is growing rapidly .............................................................................................................8
Challenges of safe-water market segments differ significantly .............................................................................8
OVERVIEW OF BUSINESS MODELS .......................................................................................................................10
Legal structure ...................................................................................................................................................12
Access to financing ...........................................................................................................................................12
Entrepreneurial capacity ....................................................................................................................................12
Partnerships ......................................................................................................................................................14
Revenue model .................................................................................................................................................14
FACTORS INFLUENCING SCALE-UP OF SAFE-WATER PRODUCTS AND SERVICES ...............................................16
User awareness, consumer demand, and behavior ..............................................................................................17
Product characteristics .......................................................................................................................................19
Manufacturing and importation .........................................................................................................................23
Distribution ......................................................................................................................................................24
Marketing .........................................................................................................................................................24
Financial barriers ...............................................................................................................................................26
GOVERNMENT AND POLICY ISSUES .....................................................................................................................28
The role of government in laying the groundwork for investment .......................................................................29
The role of the international community in creating standards ............................................................................30
ON THE HORIZON ..................................................................................................................................................33
New technologies ..............................................................................................................................................34
New delivery models .........................................................................................................................................35
New partnerships ..............................................................................................................................................39
RECOMMENDATIONS TO ACCELERATE THE BOP SAFE-WATER MARKET ...........................................................40
1. Strengthen the enabling environment .............................................................................................................41
2. Strengthen commercial financial intermediaries. .............................................................................................41
3. Increase BOP consumer demand for safe-water technologies ..........................................................................42
4. Increase BOP consumers’ access to credit for water-related borrowing ...........................................................43
5. Provide soft and flexible funding to safe-water entrepreneurs. ........................................................................43
6. Invest in a portfolio of technologies and business models. ..............................................................................47
7. Invest as much in the entrepreneur as in the technology. ................................................................................47
8. Identify and support enterprises that match products and strategies to the right market segments. ................48
9. Improve technologies and business models through advisory services. ............................................................48
10. Incentivize producers of high-end technologies to target BOP markets. .........................................................49
APPENDIX I: COUNTRY REPORT: KENYA & UGANDA .........................................................................................50
Key findings: East Africa ....................................................................................................................................50
Safe-water sector overview ................................................................................................................................50
Case study: Ecotact Ltd. – Kenya ........................................................................................................................53
APPENDIX II: COUNTRY REPORT: INDIA ................................................................................................................55
Key findings: India .............................................................................................................................................55
Safe-water sector overview ................................................................................................................................55
Case study: Hindustan Unilever (HUL) and ACCESS .............................................................................................58
APPENDIX III: COUNTRY REPORT: CHINA ..............................................................................................................61
Key findings: China ...........................................................................................................................................61
Safe-water sector overview ................................................................................................................................61
Case study: Shangli Solar Cookers ......................................................................................................................65
SUGGESTED FURTHER READING ...........................................................................................................................67
Reviews of technologies ....................................................................................................................................67
Business models for scaling up, marketing, and consumer uptake.......................................................................67
Table 1. Examples of Revenue Models in the Safe-Water Sector ................................................................................15
Table 2. Kenya’s Water Sector by the Numbers .........................................................................................................51
Table 3. Uganda’s Water Sector by the Numbers.......................................................................................................52
Table 4. India’s Water Sector by the Numbers ...........................................................................................................57
Table 5. China Water Sector by the Numbers............................................................................................................
GOVERNMENT AND POLICY ISSUES .....................................................................................................................28
The role of government in laying the groundwork for investment .......................................................................29
The role of the international community in creating standards ............................................................................30
ON THE HORIZON ..................................................................................................................................................33
New technologies ..............................................................................................................................................34
New delivery models .........................................................................................................................................35
New partnerships ..............................................................................................................................................39
RECOMMENDATIONS TO ACCELERATE THE BOP SAFE-WATER MARKET ...........................................................40
1. Strengthen the enabling environment .............................................................................................................41
2. Strengthen commercial financial intermediaries. .............................................................................................41
3. Increase BOP consumer demand for safe-water technologies ..........................................................................42
4. Increase BOP consumers’ access to credit for water-related borrowing ...........................................................43
5. Provide soft and flexible funding to safe-water entrepreneurs. ........................................................................43
6. Invest in a portfolio of technologies and business models. ..............................................................................47
7. Invest as much in the entrepreneur as in the technology. ................................................................................47
8. Identify and support enterprises that match products and strategies to the right market segments. ................48
9. Improve technologies and business models through advisory services. ............................................................48
10. Incentivize producers of high-end technologies to target BOP markets. .........................................................49
APPENDIX I: COUNTRY REPORT: KENYA & UGANDA .........................................................................................50
Key findings: East Africa ....................................................................................................................................50
Safe-water sector overview ................................................................................................................................50
Case study: Ecotact Ltd. – Kenya ........................................................................................................................53
APPENDIX II: COUNTRY REPORT: INDIA ................................................................................................................55
Key findings: India .............................................................................................................................................55
Safe-water sector overview ................................................................................................................................55
Case study: Hindustan Unilever (HUL) and ACCESS .............................................................................................58
APPENDIX III: COUNTRY REPORT: CHINA ..............................................................................................................61
Key findings: China ...........................................................................................................................................61
Safe-water sector overview ................................................................................................................................61
Case study: Shangli Solar Cookers ......................................................................................................................65
SUGGESTED FURTHER READING ...........................................................................................................................67
Reviews of technologies ....................................................................................................................................67
Business models for scaling up, marketing, and consumer uptake.......................................................................67
Table 1. Examples of Revenue Models in the Safe-Water Sector ................................................................................15
Table 2. Kenya’s Water Sector by the Numbers .........................................................................................................51
Table 3. Uganda’s Water Sector by the Numbers.......................................................................................................52
Table 4. India’s Water Sector by the Numbers ...........................................................................................................57
Table 5. China Water Sector by the Numbers............................................................................................................
-----------------------------------------
Dan Campbell, Web
Manager
Environmental Health at USAID
1611 North Kent St., Suite 300
Arlington, VA 22209
Ph:
703-247-8722
Email: dcam...@usaid.gov
Environmental Health at USAID: http://www.ehproject.org
Indoor Air Pollution Updates: http://iapnews.wordpress.com
Sanitation Updates: http://sanitationupdates.wordpress.com
Urban Health Updates: http://urbanhealthupdates.wordpress.com
Cholera Google Group: http://groups.google.com/group/cholera-control
Household Water Treatment Google Group: http://groups.google.com/group/household-water-treatment