Catalyzing Sanitation Businesses - Sanitation as a Business, SAAB (Water for People, Uganda, Rwanda, Malawi, India, Bolivia, Peru, Ecuador)

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  • jsauer
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Re: Catalyzing Sanitation a a Business Interim Learning Report

Addressing the magnitude of the sanitation challenge requires fresh thinking and innovation in program approaches, partnerships, technologies, and financing. Catalyzing Sanitation as a Business (SAAB)—a Water For People initiative funded by the Bill & Melinda Gates Foundation—was designed to test new ideas and understand what works.

SAAB is now halfway through its four-year implementation process and we’ve prepared a report to shed light on some of the key insights so far.

The underlying principles of SAAB are:

•Sustainable sanitation is achievable and scalable by application of business and marketing disciplines.
•It is more effective in the long run to take a business person and train them in the sanitation industry than it is to take a sanitation person and make them into a business person.

Over the past two years, Water For People has tested these principles and implemented SAAB in different settings all over the world. Furthermore, we have developed a cohesive framework to base our understanding and future decisions. The report explains the best-practices framework for SAAB and explores how to bring successful sanitation businesses to a greater scale.

Some of the topics in the report include:

•Water For People’s approach toward building a more effective sanitation market
•Business development support partner reflection
•Improved business promotion techniques

Please download the report here:

www.waterforpeople.org/programs/how-we-w...ness-report-2013.pdf

[attachment:1]C:\fakepath\interim-sanitation-as-a-business-learning-report-2013-final.pdf[/attachment]
John Sauer
Senior Technical Advisor - Water, Sanitation and Hygiene
Population Services International
1120 19th Street, NW, Suite 600
Washington, DC 20036 | tel: 917-548-7779 | skype: john.sauer7960 | twitter: johnwsauer | email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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  • smunyana
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Re: Catalyzing Sanitation Businesses (Water for People, USA, Malawi, Uganda, India)

Dear Frederick,
Thanks for sharing and it is exciting to see the interest the article generated and the potential partnerships that we can use to push this further. It would be great explore the journalists' forum further and other avenues to keep the momentum going. I will discuss with the team and we will be in touch.
Thanks again
Sherina
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  • Kiku
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Re: Catalyzing Sanitation Businesses (Water for People, USA, Malawi, Uganda, India)

@Sherinah, the New Vision reported the article on the Gulper as the most emailed last week. As WASH practitioners, seeing articles on sanitation well received by the public can only encourage us to keep the momentum going. Perhaps East Africans could ape our West African colleagues and encourage creation of a forum for journalists that cover WASH issues. Water Aid Uganda has already set the pace through creation of a Parliamentary WASH Forum as lobbyists at the highest political level.

Fredrick
Fredrick Tumusiime, MSc

Skype: tufre80

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  • Kiku
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Re: Treatment of sanitation volumes in Kampala

I put here an e-mail exchange I had with Karsten about the use of The Gulper and the faecal sludge treatment - as it could be interesting for others working in Uganda, too.

Dear Karsten,

Thanks for the interest in The Gulper. We believe that stimulating private sector participation in sanitation services is the future. Besides GIZ, the other parties in The Gulper venture include Water for People (WFP, NGO), Captiva (Business Development), Kampala Capital City Authority (KCCA), and various small scale businesses that have been recruited, trained and equipped with skills to sustain the pit-emptying business. Besides partly funding the project, our role is largely to facilitate the process owing to our long-standing experience in the urban WASH sector in Uganda.

On how the emptied sludge is handled, the current model involves transport and emptying at the NWSC wastewater treatment plant within the City. Moreover, Water for People is working closely with KCCA to set up sludge holding tanks to further reduce transport costs. In future, there will be less transport needs as more wastewater treatment facilities with capacities to handle faecal sludge are being built in various locations within the City. One such facility (Lubigi) is near completion, and its catchment covers the informal settlements where The Gulper is being rolled out.

As we are open to further sludge treatment options, the idea of setting up a Kakiri-type composting facility is welcome. I have visited the site on at least two occasions (www.flickr.com/photos/gtzecosan/68772217...et-72157629320894295), and our interest would largely be in commercial viability of the fertilizers. As with most pilots, piecemeal successes have been demonstrated on reuse of human excreta without much to show for when it comes to scale. Our good friend, Dr. Charles Niwagaba, has also been involved in various research in regard to demand for biosolids in Kampala. Any form of investment would have to be guided by such knowledge.

Since Water for People is a key partner in The Gulper initiative, it would be good to include Ms. Cate Nimanya (Country Director, WFP) in the discussion on the possibility of setting up a treatment unit for sludge volumes being handled by The Gulper.

Best, Fredrick

PS. As the attachment shows, not all pit contents are dumped in the "lake" untreated. A good proportion on pits in Kampala are used and safely abandoned - and as the sheets show, cities with higher sewerage proportions are not fairing that better when it comes to unsafe disposal into the environment.

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From: Karsten Gjefle [This email address is being protected from spambots. You need JavaScript enabled to view it.] Sent: Sunday, May 12, 2013 2:49 PM To: Fredrick Tumusiime

Dear Fredrick Tumusiime, Technical Adviser - GIZ, With great interest did I read the story in New Vision about the pit emptying system that now is being brought to some scale in Kampala.

www.newvision.co.ug/news/642497-kampala-...posal-technique.html<www.newvision.co.ug/news/642497-kampala-...chnique.html/t_blank>

As you are aware of SuSan Design has tested a treatment solution that is robust and gives safe natural fertilizer and soil improvement product so the nutrient value of the pits can come back into productive use instead of being dumped into the lagoon or lake. (I assume that is what is taking place)

Our test site was just outside Kampala and GIZ has earlier visited it when it was up and running.

If there is room in your program to revive the site that would be a good investment in a sanitation solution that has proven to produce quality natural fertilzer. We tested the volumes on maize with NARO and we should be very close to get production going on a commercial platform covering basic running cost. Please let me know if you would like more information on our work or a suggestion from our side what it would cost to set up a unit that would cover the volumes now being handled by the gulpers.

Please inform me how the volumes from the gulpers today are deposited. Looking forward to be part of the solution in Kampala.

Best regards,

Karsten Gjefle

Director, Susan Design

www.susan-design.org
Fredrick Tumusiime, MSc

Skype: tufre80

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  • smunyana
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Re: Catalyzing Sanitation Businesses (Water for People, USA, Malawi, Uganda, India)

Partnership with GIZ for more gulper services in Kampala

www.newvision.co.ug/news/642497-kampala-...posal-technique.html
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  • smunyana
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Re: Catalyzing Sanitation Businesses (Water for People, USA, Malawi, Uganda, India)

If you would like to read some more about the work of SAAB, we have posted a number of documents and reports in the library on the link below.

www.susana.org/lang-en/library?view=ccbktypeitem&type=2&id=1733

On this link you will find the following information:
BOP - Pit emptying - A Business Opportunity Profile summarizing the how and what for sanitation entrepreneurs that would like to get into the pit emptying business

BDS Selection Guideline - This is a guideline on how to select a BDS partner based on Water For People's experience in selecting BDS partners to implement SAAB

BMO Report - Findings of a research study conducted for Water For People on the role of Business Member Organizations in supporting sanitation entrepreneurs in Uganda, Rwanda and Malawi

Sanitation Finance Report - A research study on Access to Capital for Entrepreneurs and End-Users

SAAB Updates - Reports on our work in India, Uganda and Malawi in 2012
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  • smunyana
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Re: Catalyzing Sanitation Businesses (Water for People, USA, Malawi, Uganda, India)

TV footage - excerpt from press conference launching the gulper in Uganda

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  • smunyana
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Re: Catalyzing Sanitation Businesses (Water for People, USA, Malawi, Uganda, India)

"Public sanitation is the new goldmine" - An article about Vision 10, one of the Gulper entrepreneurs in Uganda. The sanitation pit-emptying business is starting to gain ground in Kampala, as illustrated by this entrepreneur's experience

www.newvision.co.ug/news/640975-public-s...he-new-goldmine.html
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Re: Catalyzing Sanitation Businesses (Water for People, Malawi, Uganda, India, South America)

This week the SAAB BDS partner in Uganda, Captiva Communications held a press conference on 18th March 2013 officially launching the Gulper in Uganda. The objective of the press conference was to increase awareness on the business opportunities in the sanitation sector including the Gulper, a technology that will help to provide a solution to emptying latrines particularly in slum areas that cannot be accessed by a tanker. Aside from increasing awareness of the business opportunity for potential entrepreneurs and the business support that they can receive from the BDS partner, it also provided awareness about the technology for so many households in slum areas in Uganda that need this service and have previously not been aware of its existence. It is therefore a chance for these households to get a more affordable latrine emptying service through the market, which will greatly contribute to improved sanitation services for them.

This link below shows one of the excerpts shown on one of the local TV stations following the conference and this kind of media buzz is expected to facilitate increased interest in the sanitation businesses, as will as increased opportunities for households to get links to these affordable services through SAAB.

Video:




www.monitor.co.ug/News/National/Affordab.../2to2x1/-/index.html
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  • captiva
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Re: Captiva Africa-Water for People Launch Gulper Technology

(Note from the moderator: this message was moved from the topic ' Pit emptying (Gulper and others) '

Press Release
Captiva Africa Unveils the Gulper

Kampala, 18th March 2013: In a first for the Uganda sanitation market, Captiva Africa Ltd, a business advisory firm has announced the unveiling of an innovative pit latrine emptying technology dubbed The Gulper”. This is set to benefit thousands of households in informal settlements that have hitherto not been able to access these sanitation services.
Speaking during the launch, Senior Business Development Advisor Saidi Bukenya explained that The Gulper can be carried by hand and has proven to be effective in getting waste out of latrines. He noted that the device caters for households that may not afford bulk emptying and enables them to only empty the waste that they can pay for at a given time.
“The Gulper has already made a significant impact in the areas where it has been used. So far latrines for 42 households have been emptied using the new technology in such areas as Kawempe, Kyebando and Bweyogerere. Four businesses in sanitation in Kampala have deployed the equipment.” Said Mr Bukenya.
The Gulper is not only of value to households that cannot be accessed by the Cesspool trucks but will create jobs and opportunities for entrepreneurs in the untapped sanitation sector which has high growth potential.
Captiva Africa Ltd has since 2011 partnered with a leading international development agency to implement the Sanitation Solutions program which seeks to make the private sector the driver for improving access to sanitation in Uganda. Under the Sanitation Solutions program, Captiva Africa has provided a range of business development support services which include access to innovative technologies for entrepreneurs in the sanitation sector.
This comes from the realisation that there is untapped market potential in the sanitation sector which has not yet been exploited by the private sector.
A recent market study by Captiva Africa Ltd indicated that the sanitation sector can generate up to Uganda shillings 130 billion annually in revenues from latrine construction, emptying and waste reuse. The study revealed that in Kampala alone, the market potential for emptying pit latrines is in the range of UGX 31.2 billion annually.
“We have collaborated with our client on the Sanitation Solutions program to bring this new technology to the market and are excited at the prospect of supporting local businesses exploit the market opportunities that will arise from the use of The Gulper” said Joan Asiimwe a Business Development Advisor at Captiva Africa.
Mr Bukenya explained that thousands of latrines within Kampala fill up and need to be emptied on a daily basis. In the past, those who could not afford to pay for the emptying services simply dug a new pit after the old one filled up. This is not sustainable in the densely populated areas.

“The Government and the local authorities should consider more bold incentives for businesses to invest in the nascent sanitation sector in order to reduce reliance on the public sector and development agencies”. Bukenya concluded.
Ends.../

For more information, please contact;
Esther Kalenzi
Business Analyst
Captiva Africa Ltd
Mobile: +256 777 499 991
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.captivaafrica.com
www.sanitationsolutions.ug


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  • smunyana
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Re: Catalyzing Sanitation Businesses (Water for People, Malawi, Uganda, India, South America)

Dear Dorothee,

Please see below responses to the information requested:

- Where are the opportunities and where the limitations of supporting the private sector as the main driver in the sanitation service providers?

Supporting the private sector as the main driver in provision of sanitation services presents a number of opportunities - there are more options available for customers as different products are available to different market segments depending on what they can afford - for example in India, BASIX, the BDS provider has developed a product catalogue detailing different toilet options and providing price ranges so customers can select what is most affordable or desirable. In addition, sanitation service provision through the private sector also ensures a better level of quality for customers since elements like competition and the need to guarantee customer satisfaction will come into play with private sector involvement.

However there are limitations particularly when it comes to financing - this is twofold - private sector sanitation entrepreneurs require financing to start up or expand their sanitation businesses and the experience in Africa has shown that with bank lending rates as high as 24% per annum, bank financing has not been easy to access.
On the other side, financing is also a challenge for customers - what is required is a way for households to access affordable loans for sanitation products with flexible repayment plans - for example through Savings and Lending Associations. SAAB is trying to work through such local existing frameworks to link households to financing options but these too will require capitalization when demand levels increase.

- Objectives/methodology: What are the main objectives of your project? What are the working steps to achieve your goal? How and who does choose the business models and what is your role in this task?
The overall goal of SAAB is to develop a methodology for supporting sanitation businesses that, if successful, could provide an alternative to conventional sanitation approaches and lead to the significant expansion of sanitation services to poor people by the local private sector. The main objectives under this are:
1. Market analysis: market segmentation and research to scope the potential for on-site sanitation business models in a range of urban and peri-urban contexts.
2. Business model development: identifying profitable business models for sustainable sanitation service delivery that benefit the poor (drawn on market research and through testing in different contexts in several countries). Clear examples of successful businesses will be developed, which extend sanitation coverage to the poor. Recruitment of new sanitation entrepreneurs will be done through selected local marketing companies.
3. Business support: strengthening managerial and technical capacity of sanitation businesses for ongoing support to entrepreneurs in the development of their sanitation businesses through recruited local marketing companies.
4. Building an evidence base: Documenting where businesses make a clear case to customers, sharing of lessons learned, strengthening existing monitoring and evaluation systems, developing private sector management systems, and partnerships with local governments, regulators, local investors, development organizations and to address sanitation needs in poor areas.

To achieve this, we are working through local Business Development Service firms that are the primary implementer of this market-based approach. The BDS conducts market assessments to establish the viability of sanitation businesses and it is on the basis of these that they develop the business models.
Water For People play more of a facilitative role in this process with the emphasis more on the BDS and private sanitation entrepreneur(s) to do the actual provision of sanitation products and services (with the BDS providing business support to the entrepreneurs).

- Could you give some more details on what a BDS is exactly, its size, organisational structure etc. (e.g. they are privat and for-profit, but have up to know support from you and duties to the project – e.g. "BDS firms are responsibe for identifying profitable business models for sustainable sanitation service delivery that benefit the poor ")?
A BDS is intended to be the private sector face of SAAB. Water For People is implementing SAAB through the BDS and therefore Water For People's role is merely to facilitate the BDS to conduct market assessments, identify viable sanitation business models, recruit and support sanitation entrepreneurs to implement these business models. Therefore, the BDS will be the primary implementers and aside from its facilitation role, Water For People will also play an active role in monitoring and sharing experiences and lessons learnt among the different BDS in the different countries. The following document can provide some more insight into what to look out for when selecting a BDS:
tap.waterforpeople.org/usercontent/1/3/3...tion%2BGuideline.pdf


- Who is bearing the financial risk when a entrepreneur launches his new business, the entrepreneur, the BDS, the banks, etc.?
The entrepreneur bears the financial risk when he launches his business. Having received business support from the BDS including drawing up a business plan, the entrepreneur will find financing either through the bank or their own capital to start the sanitation business, basing on the projected profitability, just as they would for any other potentially profitable business.

- How do the different business model look like? Can you share more details for India, Africa and LA? Do you have pictures of the projects?
The main business models are around toilet / latrine construction and pit emptying. A detailed report on the progress of each is currently being finalized (containing pictures of the projects and I will be share this soon.
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  • smunyana
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Re: Catalyzing Sanitation Businesses (Water for People, Malawi, Uganda, India, South America)

Hi All,
Thanks so much for your feedback and comments.

I will start by introducing myself and my role in the SAAB project. My name is Sherina Munyana and I handle the communications function for the SAAB project, particularly reporting, sharing stories, experiences and lessons learnt. Dorothee, I will handle the information requested shortly in my next post.

Deo, since you are in Uganda, I will send you a separate email and we can set up a meeting to discuss possible BDS partnerships.

Humberto, I would love to hear some more about the work you are doing in Bolivia, especially since we are working to implement SAAB in Bolivia and are currently at a stage where we are reviewing business plans and developing viable business models so it would be great to get some feedback on your experiences. You rightly mention the affordability element for the poor regarding the tariff and this is a similar situation we are facing so what we are attempting to do is work through Micro Finance Institutions that can link households with financing for sanitation services (such as Ecosan baths) and then they can repay this loan over a more flexible time period. I am very keen discuss more on how we could learn from each others' experiences and also link you up with our South America and Bolivia team so I would be happy to discuss this further on email. My email address is This email address is being protected from spambots. You need JavaScript enabled to view it.
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