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UNC Water & Health Conference | October 30, 2018
Presenters: Jesse Shapiro (USAID), Rishi Agarwal, Morris Israel, Jeff Albert (WASHPaLS)
Facilitators: Ada Oko-Williams (WaterAid), Geoff Revell (WaterSHED), John Sauer (PSI),
Mimi Jenkins (WASHPaLS), Yi Wei (iDE)
Designing Effective Sanitation Enterprises
FSG
• Water, Sanitation, & Hygiene Partnerships for Learning and Sustainability.
5-year (2016–2021) research and technical assistance project
• Goal: Enhance global learning and adoption of the evidence-based
programmatic foundations needed to achieve the SDGs and
strengthen USAID’s WASH programming at the country level
What is WASHPaLS?
2
Key QuestionsGoal Outputs
Achieve
universal
sanitation and
hygiene
Ongoing field
research with
partners
Ongoing field
research with
partners
Pending field
research with
partners
When and how are
sanitation approaches
effective and
sustainable?
How to repeat success
at scale?
CLTS Desk
Review
What does it cost?
Play Spaces
Desk Review
MBS
Desk Review
The WASHPaLS Research Design Summary
MBS: Market-based Sanitation; CLTS: Community Led Total Sanitation 3
The sanitation market can be depicted through this framework,
which allows for diagnosis and problem–solving for scale
4
BR
OA
DER
CO
NT
EX
T
SANITATION MARKETB
US
INES
S E
NV
IRO
NM
EN
T
CUSTOMER
Affordability Availability
ENTREPRENEUR
Target
Market
Delivery
Model
Product
System
Sales &
Marketing
ENTERPRISE
4
MBS interventions face barriers to scale across the sanitation
market system
2
BR
OA
DER
CO
NT
EX
T
SANITATION MARKET
BU
SIN
ES
S E
NV
IRO
NM
EN
T
CUSTOMER
Affordability Availability
ENTREPRENEUR
ENTERPRISE
Unsupportive social norms
Long history of subsidies reducing demand
Poor transport infrastructure—roads etc.
Challenging geographical context—
population dispersion, terrain, etc.
Lack of public goods (e.g. customer insights, product
designs)
Poorly penetrated associated supply chains (e.g. , cement)
Lack of credit for customers or entrepreneurs
Inhibitory market rules (e.g., policy)
Lack of awareness
Lower priority accorded to sanitation
Lack of savings/seasonal incomes limiting
ability to make upfront payments
Inadequate income to afford available products
Lack of “critical mass” of customers to serve
profitably
Lack of product systems that are acceptable
to customers and suppliers
Lack of cost-effective mechanisms to activate demand
Lack of efficient mechanisms to fulfill orders
Low profitability —at unit/ business level and/
or absolute amount
High opportunity cost in selling toilets
Limited availability of entrepreneurs,
especially in rural contexts Lack of affordable capital to invest in
sanitation enterprise
Target Market
Delivery Model
Product System
Sales & Marketing
5
The sanitation enterprise is at the core of the sanitation market
and enables the exchange of goods and services
6
BR
OA
DER
CO
NT
EX
T
SANITATION MARKETB
US
INES
S E
NV
IRO
NM
EN
T
CUSTOMER
Affordability Availability
ENTREPRENEUR
6
Target
Market
Delivery
Model
Product
System
Sales &
Marketing
ENTERPRISE
7
Effectively designed sanitation enterprises are both viable and
sustainable
Investing in sales & marketing mechanisms to increase “number of customers”
Aggregating more products and services to increase “share of wallet”
Operating sanitation as a related business; not a standalone enterprise
Operational and financial independence from program implementers
Top level findings impacting viability and sustainability of sanitation enterprises
8
Sales & marketing of toilets entails intense one-on-one direct
communication with customers to prompt a purchase
ENTREPRENEUR
Indirect marketing
Direct marketing
Mass-media
Branding
SelfCUSTOMER
?
Demand activators
1
Independent demand activators who market and sell toilets on
behalf of enterprises is an effective mechanism to drive sales
MBS program
Products
2
1 3
4
5CUSTOMER ENTREPRENEUR
DEMAND
ACTIVATOR
Training Information Money
Who can play the role of demand activators and how might their participation be
sustained?9
1
A range of delivery models exist and should be used based on
the context to simplify customers’ buying experienceFull AggregationNo Aggregation
One-Stop Shop (OSS)
Turnkey Solution Provider
(TSP)Mason/DIY Network
DIY: Do-it-yourself10
What are the key factors that influence delivery model choices?
Focal Point CustomerConcrete products
manufacturerPan supplier Mason Brick supplier
Super-structure
materials
Cement, sand,
gravel etc.
2
Interventions often engage entrepreneurs with related businesses
to operate sanitation enterprises as a business line
• Masons
• Pit diggers
• Hardware retailers
• Cement retailers
• Sand / gravel suppliers
• Concrete products
suppliers
• Cement
• Sanitary hardware
• Door fabricators
• PVC pipes
• Roofing materials
Proximity to customer in the sanitation context
Raw material / component
manufacturers / importers
Raw material /
component suppliersSkilled labor
11
What types of related businesses are suited to run sanitation enterprises?
3
12
Direct interactions between actors in the market system enhances
sustainability of sanitation enterprises
$
Sanitation
Market
Sanitation market system
Direct interactions
Facilitation/ one-
time support
How can programs plan such that the mechanisms and practices instituted continue
beyond the life of the program ?
4
13
Activity – Thematic Group Discussion
Designing sustainable
sales & marketing
mechanisms
Delivery model choices
for enterprise viability
Evaluating entrepreneur
profiles for enterprise
viability
Planning for
sustainability
Self-select a theme and join the group
Group discussion (20 minutes)
Note your key takeaways and questions
Move to the next theme (20 minutes)
Note your key takeaways and questions
Remain seated with your group for Q&A
1 2
3 4
Q&A FSG
Contacts:
Jesse Shapiro, Senior WASH Advisor, USAID
Rishi Agarwal, Managing Director, FSG
Learn more in the desk review and webinars available at Globalwaters.org
Morris Israel, Project Director, WASHPaLS
Jeff Albert, Deputy Project Director, WASHPaLS
Geoff Revell
WaterSHED
Ada Oko-Williams
WaterAid
John Sauer
PSI
Yi Wei
iDEMimi Jenkins
UC Davis
Operational definitions
Market-based Sanitation: The development of a sanitation market in which
the user makes a full or partial monetary contribution (with savings and/or
cash equivalents) toward the purchase, construction, upgrade, and/or maintenance
of a toilet from the private sector.
Toilet: A sanitation fixture used for capture and storage, or disposal of human
urine and feces. The term toilet refers to the basic substructure (underground)
components and the interface (e.g., slab, pan, water closet). A toilet may
include the superstructure (walls, roof, and a door).
15
