Monitor Deloitte has estimated that the demand for rural toilets in India could be worth INR 500-700 billion (US$ 10-14 billion), with an INR 300-450 billion (US$ 6-9 billion) financing opportunity. This is one of key key highlights from their recent white paper.
Photo: Monitor Deloitte
The paper identified two main types of business models to deliver rural toilets: the Do It Yourself (DIY) model and a Turnkey Solution Provider (TSP) model. Both models require a central player or ‘market maker’ to conduct market-building activities to get the models started. Organisations such as NGOs, microfinance institution (MFIs) and cement companies can play this role, while the Government has a key role in facilitating the development of the sanitation market.
The Government of India has approved funding of over US$ 4 billion for rural sanitation, but less than 60% of these funds have been used, the paper says. Census data indicates that many of these Government supported toilets may be non-existent or not-in-use.
Research by Monitor Deloitte in the Indian state of Bihar showed 84% of households surveyed in rural Bihar indicated their desire for a toilet and 38% of these households had actually researched available product options. Safety of women, convenience and privacy as opposed to health were key drivers.
Deloitte is organising a series of open conference calls to discuss their findings on the following dates:
- February 12, 10am IST
- February 25, 10am IST
- March 5, 9:30am IST
- March 13, 9:30pm IST
Please request RSVPs to firstname.lastname@example.org for more information and materials for the call.
. 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
Monitor Inclusive Markets, with support from the Bill & Melinda Gates Foundation, has written a white paper titled “A Market Led, Evidence Based Approach to Rural Sanitation” on supply side market-based approaches to scale rural sanitation in India, based mainly on findings from the PSI-led “Supporting Sustainable Sanitation Improvements” (3SI) project in Bihar and supplemented by additional investigation of interventions in other parts of India.
The white paper explains that demand for toilets does exist in rural India, and the availability of quality and affordable products as well as financing are key levers to unlocking this demand. It goes on to propose business models that could profitably deliver solutions that meet customer needs, and highlights players in the sanitation ecosystem who could serve as the “market maker,” conducting market-building activities and creating an enabling environment for growth.
Please visit www.inclusive-markets.org/sanitation to see a more complete set of outputs from the 3SI project as well as annexures to the white paper providing overviews of some organizations already delivering sanitation solutions or providing sanitation financing in rural India.
No shame in a simple pit latrine - Complete article/source – Diane Coffey, RICE Institute, Dec 11 2013.
Excerpts - Today I just want to take a couple of minutes to share a short story about a modest pit latrine. Amit and I were doing an interview for the quantitative survey with an older man in Rewari block. He answered our questions kindly and patiently, but when we got to the section in which Amit was supposed to observe the man’s latrine, the man said it not at the house (it is common in Rewari for people to built latrines on the plot of land where they keep their animals). I told Amit to finish the interview and that we’d fill in that section later. When we finished the interview, we again asked to see the latrine, asking whether there was a child from the house who could take us to the plot.
The man looked uncomfortable and said that that would not work. We suggested we could find our way ourselves, and he said no, so we gave up.Why would the older man be ashamed of his latrine in a place where so many people practice open defecation?
Well, in Haryana, people tend to build extremely fancy latrines, or none at all. The fancy latrines have water seals that prevent bad smells and in many cases flush tanks – we even saw latrines equipped with both a western toilet seat and an Indian one.
Complete article/source - Diane Coffey, RICE Institute, Dec 11 2013.
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.