A group of organisations have launched an initiative to stimulate investment in business proposals that will lead to large-scale sanitation services for the poor. It will involve creating both a virtual marketplace and organising a matchmaking event in Singapore.
The organisations will promote their initiative at three upcoming sector events: the Sanitation and Water for All High Level Meeting, the Money2Water Global Water Investment Summit and the Water and Sanitation Program (WSP) Council meeting.
The “Sanitation Business Matchmaking Estafetta” will culminate at the BoP WORLD Convention & Expo in Singapore in 28– 30 August 2014. The results of the Estafetta will be presented during the 2014 World Water Week in Stockholm.
The organisations that have launched the “Sanitation Business Matchmaking Estafetta” include: Aqua for All, Euromoney Water Events, Bill & Melinda Gates Foundation, Simavi, WSP and Waste in association with IRC and the World Toilet Organization (WTO).
BoP HUB, the co-organiser of the BoP WORLD Convention & Expo, is the brainchild of WTO founder Jack Sim.
See the Estafetta leaflet for full details.
Tapping the Market: Opportunities for Domestic Investments in Sanitation for the Poor, 2013. Conference Edition.
World Bank; WSP; IFIC.
The current market for improved on-site sanitation services in the four countries is large: supplying new systems and replacing old ones is conservatively estimated to be worth US$300 million a year. But the potential market is much larger: one-time sales of improved sanitation facilities to the 228 million people without access are worth at least US$2.6 billion.
Poor people alone would account for sales of about US$700 million. New customers would increase the replacement market to about US$550 million a year. Private sector activity associated with the market is not limited to the installation of latrines and toilets. The domestic private sector in these countries is engaged in a range of activities, including wholesale and retail sales of materials and components, the manufacture of prefabricated cement products used to build latrines and toilets, and the provision of advice on and the design of latrines and toilets.
Some enterprises also offer financing facilities or are engaged in related services, such as repairs, pit emptying, and septage disposal, which have the potential to be sizable business opportunities (the potential market for truck-based pit emptying in Indonesia is about $100 million a year, for example).
The study’s recommendations focus primarily on the constraints inherent in current technologies and in the supply chains that support provision of on-site sanitation services. It is these constraints that lead to households being offered products and services that they are not very interested in buying. The recommendations are aimed at governments, development partners, and industry.
Small-scale finance for water and sanitation, 2012. SHARE.
This report identifies ways in which governments and External Support Agencies can increase access to finance for small-scale WATSAN providers, by channelling public funding to support the market and leverage private sector financing. The ultimate objective in doing so is to increase access to services for poor households, who either invest in the services themselves or rely on small-scale providers.