WASH Secretariat

Water Sanitation and Hygiene Secretariat

18 juni 2009

Water and Sanitation:business opportunities at the

bottom of the pyramid?

Background• In order to accomplish both economic and societal goals, there is a trend towards an entrepreneurial way of development

• Southern countries offer a potentially interesting market (BOP): more and more Northern and Southern based businesses aim to reach this market

• Regarding Appropriate Technology (AT) for water and sanitation, the Netherlands has the know-how to position itself well

Bottom of the Pyramid:• large volumes• low margins• weak institutions• difficult to access• bound to local context

How to cater the BOP?• understand the local context• transform need to effective demand• focus on accessibility and affordability• start small, be ready to scale up quickly• create partnerships

What kind of products?• Accessible: affordable, spare parts available• Functional: easy to operate, low maintenance costs• Of high quality: solid, easy to distribute, small compact• Sustainable: durable• Manageable: straight forward• Enabling environment: education, instruction

Successful Product:

Affordable: EUR 7,=Productive: > 30 liters per dayEasy to use: simple and robustSpare parts available: EUR 3,=Durable: > 3 yrs

Step by step:• Getting Started• Making Plans• Field Testing• Going to market

Getting Started:• Do I have what it takes?• Talk to future clients• Initial cost calculations (TCO)• Product Market Combinations• Business Model

Making Plans:• Co create (product development)• Lean and mean (low cost base)• Tap into existing infra structures• Produce locally (but stay in control)• Share benefits (with selected partners)

Field Testing:• Talk to your future clients• Commercial Pilot• Testing and creating partnerships• Investigate local production• Prepare setting up local entity

Going to market:• awareness• availability• affordability• acceptability

Finance:• Blend of instruments• Depending on credit need• Subsidizing the non profitable top• Co financing to share the risks

BWNF• Very affordable and high quality ceramic filter• Local Production Facility in India (Auroville)• Promising order portfolio (40.000)• Clean Water to > 200.000 Indian people

Proven practice

Proven practice

Aqua ShopTanzania

Aqua ShopFranchises

(Social) Investor Local Entrepreneur

Aqua Shop Blocks

Aqua ShopFranchises

Aqua ShopFranchises

Aqua ShopFranchises

Aqua Shop Blocks

Aqua Shop Blocks

Aqua Shop Blocks

Local entrepreneur

Grants

Financiers

Supplier

SWESWE

SWESWE

Consumers

Scope of business

Proven practice

A BUSINESS CASECALLED

WATER AND SANITATION