Published on Feb 3, 2015
Can microfinance help increase access to sanitation? Today, 2.5 billion people do not use proper sanitation facilities. Essential services for maintaining latrines and treating faecal sludge are also underdeveloped. In many places, toilets can cost up to one year of income for poor households. Private operators of sanitation services do not have enough capital to acquire more equipment and respond to growing demand.
Since 2010, Trémolet Consulting and research partners based in Kenya MicroSave have been exploring the potential of microfinance for helping sanitation markets to develop. The research, funded by SHARE/DFID, culminated with an action-research in Tanzania in which financial institutions were trained to provide financial services for sanitation. This film explains why microfinance should be explored further, and potentially, included in sanitation programmes.
The film also presents what has been done in Tanzania under the action-research and takes the views of households, sanitation entrepreneurs, microfinance institutions and researchers.
Rural Consumer Sanitation Adoption Study: An Analyis of Rural Consumers in the Emerging Sanitation Market in Cambodia, 2014.
WaterSHED has published the findings from its comprehensive review of rural consumer sanitation adoption in Cambodia. The study evaluates WaterSHED’s Hands-Off sanitation marketing program, which was designed to catalyze the market for improved sanitation in rural Cambodia by stimulating household demand and improving the supply of affordable sanitation options for rural households.
The study confirms that the WaterSHED program has resulted in a substantial acceleration in improved latrine coverage and usage in the study areas. Household consumers are now able to access an improved latrine more easily and more cheaply than before.
New distribution and sales mechanisms are increasing household awareness of and exposure to more affordable latrine products and increasing motivation to invest in an improved latrine.
Enterprises are demonstrating that they serve at least some segments of the previously unserved rural market.
Nonetheless, significant challenges still remain. The study reveals a number of opportunities to break down remaining barriers to uptake of improved latrines and to further evolve WaterSHED’s market-based approach.
Economic Assessment of Sanitation Interventions in Southeast Asia: A Six Country Study Conducted in Cambodia, Indonesia, Lao PDR, the Philippines, Vietnam and Yunnan Province (China) under the Economics of Sanitation Initiative, 2015. Water and Sanitation Program.
Excerpts: The present study has presented evidence on the costs and benefits of sanitation improvements in different programmatic and geographical contexts in Southeast Asia. This evidence enables explicit comparison of sanitation options on the basis of their relative merits and thus informs both public and private decisions on sanitation investment.
The high socioeconomic returns of sanitation investment indicate that it should be promoted as a central development priority. The economic evidence generated in this study has demonstrated the importance of improved sanitation for a number of development outcomes, including public health, the natural environment, education, economic development, social outcomes, gender equality, and poverty alleviation. Improved evidence on the costs of sanitation and those potentially willing to pay for it, gives an evidence base for sanitation planners and providers on which to estimate the market size for sanitation goods and services.
Water For People – Strengthening public sector enabling environments to support sanitation enterprises, 2014.
Billions of people lack access to a decent toilet. Attempts to address this gap through direct-subsidy models have often been proven unsustainable as, given resource limitations, they are unable to provide desirable toilets that families are likely to use and maintain over time. Based on private sector success in low-income markets, business-based approaches may be able to help bridge this gap through sustainable market-based mechanisms and associated incentives to meet the needs and desires of lower-income households.
Water For People is piloting sanitation business approaches and seeks to discover under what conditions these approaches are successful. Public sector influence is one condition that has the potential to facilitate or hinder private sector sanitation endeavors. This study aims to understand: (1) how the public sector enabling environment can facilitate or hinder low-cost sanitation enterprises; and (2) how NGOs can effectively engage the public sector to support sanitation businesses. Data were collected from Water For People staff and partners in nine countries and summary case studies were coded to discover prevailing themes.
Below are links to the 2014 issues of the WASHplus Weekly. There were 8 issues on HAP/cookstoves, 4 issues on WASH & Nutrition, 2 issues on handwashing, and 8 issues on CLTS and other sanitation topics. Other topics include Learning from Failure, Ebola and WASH-related diseases, Multiple-Use Water Services, etc.
This 4-min video overview of the sanitation business model in Indonesia illustrates a one-stop shop sanitation business model targeted at entrepreneurs and other stakeholders.
The video animation follows Mr. Budi, a sanitation entrepreneur who produces healthy toilet facilities at an affordable price. Mr. Budi’s experience highlights steps needed to become a successful sanitation entrepreneur, such as close cooperation with various stakeholders, as well as coordination from local health offices.
The video describes the sanitation business process in stages, from drawing a social map and identifying customers to receiving orders, creating a work plan and settling payments. As a sanitation entrepreneur, Mr. Budi is creating more jobs, supporting the community, and helping the government program improve access to sanitation.