Over the last five years in Bangladesh, more than 90 million people have moved away from open defecation. While 88 percent of the population now have access to, and are using latrines, ensuring the quality and sustainability of these latrines is crucial. Without ready access to micro-credit and in the absence of well marketed technology options, many households are under pressure to move from very low cost to very high cost technology options with a significant debt burden.
In July 2009, the Association for Social Advancement: ASA (a leading Micro-Finance Institute) signed a Memorandum of Understanding with Dhaka Ahsania Mission (a national non-governmental organization) to provide loans at low interest to local small entrepreneurs for producing, marketing, and promoting appropriate sanitation technology options.
Dhaka Ahsania Mission will pilot the new financing mechanism in Jamalpur Sadar Upazilla (a sub district) with trained entrepreneurs. The Water and Sanitation Program (WSP) facilitated this process of linking local private manufacturers with micro-finance agencies to bring finance and technology together to make available a range of affordable sanitation options for households.
Source: WSP Access, Oct 2009