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.
http://www.ifc.org/ifcext/sustainability.nsf/AttachmentsByTitle/p_SafeWa
terReport/$FILE/IFC_WaterReport.pdf
"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
........................................................................
.......................................................................2
6
GOVERNMENT AND POLICY ISSUES
........................................................................
.............................................28
The role of government in laying the groundwork for investment
.......................................................................2
9
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
.......................................................................2
9
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
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