The Sanitation Business Matchmaking Estafetta initiative has published a guide to business opportunities for sanitation in small towns and peri-urban areas in upcoming economies.
The sanitation sector offers long term, slow and stable return on investments and this can be a pearl in your portfolio. Moreover, sanitation services create social benefits which may be of interest for impact investors. The challenge of the sanitation industry is to access to the right blend of financial products. Investors are invited to guide the sanitation industry in creating the conditions needed to realize ventures that prove to be attractive investment opportunities.
The guide targets investors, intermediaries and the private sector. It covers both household and public sanitation, as well as emptying & collection services, smart small sewerage, and treatment & reuse. Using Ghana as a case study, the guide presents a market analysis for sanitation investment opportunities for each of the before mentioned sanitation components and services.
Download Ready for Funding: Innovative sanitation businesses
. Summary of sanitation lending and product delivery models. Water for People
Microfinance allows middle- and lower-income households to invest in desirable sanitation products, so that public funding can be freed up to reach the poorest, according to Water for People (WfP). In a new report , WfP reviews their experiences in piloting various lending models in seven countries: Bolivia, Guatemala, India, Malawi, Peru, Rwanda and Uganda.
The report provides lessons and recommendations for donors wishing to engage in sanitation microfinancing. The four key recommendations are:
- Think like a business
- Support lending institutions based on the microfinance climate and capacity needs
- Build an autonomous sanitation microfinance market
- Track progress and lessons
The report is part of WfP’s Sanitation as a Business (SaaB) program, funded by a Gates Foundation grant.
Read the full report
 Chatterley, C. et al, 2013. Microfinance as a potential catalyst for improved sanitation : a synthesis of Water For People’s sanitation lending experiences in seven countries. Denver, CO,USA: Water For People. Available at: <http://www.waterforpeople.org/assets/files/sanitation-microfinance.pdf>
Source: Christie Chatterley et al., Microfinance as a potential cataylst for improved sanitation, Water for People, 27 Dec 2013
Posted in Africa, Funding, Latin America & Caribbean, Publications, Sanitary Facilities, South Asia
Tagged Bolivia, finance, Guatemala, India, Malawi, microfinance, Peru, Rwanda, Sanitation as a business, Uganda, Water for People
The BRAC WASH programme in Bangladesh is to conduct detailed planning to convert faecal matter from pit latrines into commercially viable fertiliser, biogas and electricity. The aim is to complete the sanitation chain by making material from millions of pit latrines safe and economically productive.
Babar Kabir, Senior Director of the BRAC WASH programme, says that there is a sound business case for investment in bio-energy units that could generate electricity on a large scale, but believes that investors must be in this for the long-term and that the most important payback will be improved health and sanitation.
Left to right: Radu Ban (Bill and Melinda Gates Foundation), Babar Kabir (BRAC) and Bernadette Blom (Goodwell Investments), panelists at the workshop Making Sustainable Business out of Sanitation. Photo: Peter McIntyre
The business case for sanitation in developing countries is testified by the thousands of small scale entrepreneurs springing up to tackle problems of open defecation and process faecal waste and urine.
Will these businesses be profitable and sustainable? Can they address the huge scale of the problem? Will they address the issues in rural areas as well as urban areas? These questions are much harder to answer.
The evidence from an event at the International Water Week leading up to the Sarphati Sanitation Award was mixed. The workshop Making Sustainable Business out of Sanitation, showed a high level of innovation and enthusiasm for businesses to address two of the most intractable public health and environment issues of our age – the 2.5 billion people who don’t have access to safe hygienic toilets and sanitation, and how to deal with human waste.