Information request on the business case for investing in hygiene promotion

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  • Dan Campbell, USAID Water Communications and Knowledge Management Project
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Information request on the business case for investing in hygiene promotion

Dear Colleagues:

We have set up a google doc to compile studies and resources on the information request below. Please let us know if you have additional studies, contacts and resources to add and we will also use this as a Water Currents issue:

https://docs.google.com/document/d/1IsPNrTPyIOeYLcmMFIcWaf8Q3PAXQCpbTAa_58yMkZM/edit

Information request - Do you have anything that you can share that argues the business case for investing in hygiene promotion? This is a conversation that could lead to global change.

Sources
- GHP
- JMP
- Toilet Board Coalition
- WASH-FIN
- WASHPaLS
- WaterSHED
- World Bank/Guy Hutton reports
- SHARE
- WSUP
- WSP/GWSP
- Others?

USAID WASH-FIN Project - WASH-FIN advocates for commercially viable business models that strengthen creditworthiness, within clear regulatory and governance structures. Building on that, WASH-FIN aims to increase and leverage public investment with repayable, market, and other sources of finance to expand or improve service delivery.

- Cambodia Investor Landscape Assessment Report, 2018 - WASH-FIN assessed the investor landscape to gain insight on the state of financing for private water operators (PWOs) in Cambodia, assist PWOs to tailor their capital financing efforts to the different investor types, and help PWOs prioritize investor types based on their respective requirements.

- Financing Facility Landscape Assessment Report | WASH-FIN Working Paper No. 1, 2018 - USAID requested that the Water, Sanitation, and Hygiene Finance (WASH-FIN) Project conduct an assessment to better understand the prevailing landscape of financing facilities. The primary audience for this report is internal: for use by WASH-FIN in its portfolio countries; and by USAID to inform future WASH finance efforts and non-finance activities.

USAID WASHPaLS Project - WASHPaLS focuses particularly on WASH interventions that contribute to improved sanitation access and hygiene behaviors in rural areas. A prime focus is providing sector leadership through innovation and operational research activities that build a rigorous evidence base for new interventions and approaches to address priority problems related to hardware/technologies, behavior change, and the enabling environment for WASH.

- Webinar: Designing Effective Sanitation Enterprises, 2018 - WASHPaLS presents a detailed discussion of the elements of a sanitation enterprise including mechanisms and practices, design approaches, and key considerations based upon the findings a recent WASHPaLS desk review. Read the report: Scaling Market-Based Sanitation: Desk Review on Market-Based Rural Sanitation Development Programs

WHO/UNICEF Joint Monitoring Program

- Progress on household drinking water, sanitation and hygiene 2000-2017: Special focus on inequalities. United Nations Children’s Fund (UNICEF) and World Health Organization (WHO), 2019. Page 9: 3 billion people still lacked basic handwashing facilities at home: 1.6 billion had limited facilities lacking soap or water, and 1.4 billion had no facility at all. Nearly three quarters of the population of Least Developed Countries lacked handwashing facilities with soap and water.

Toilet Board Coalition - Initiated in 2014 and formalized in 2015 as a business-led partnership and platform, the TBC has the ambition to address the global sanitation crisis by accelerating the Sanitation Economy.

- Introducing the Sanitation Economy. Toilet Board Coalition, November 2017. The Sanitation Economy is smart, sustainable, innovative, cost saving and revenue generating. Page 11: Unilever - In 2017 we have launched a new affordable Domestos toilet cleaning powder to fit the specific contexts of low-income families, often with their first toilet. Page 12: LIXIL - LIXIL has set a target of improving access to sanitation and hygiene for 100 million people by the year 2020. LIXIL’s SATO business unit is playing a key role in achieving this, and is now strengthening its manufacturing capabilities and coverage.

- The Circular Sanitation Economy: New Pathways to Commercial and Societal Benefits Faster at Scale. Toilet Board Coalition, November 2017. Circular Sanitation business models can be profitable at scale, and at lower cost than traditional sanitation systems. We have modelled commercial data from the Toilet Board Coalition 2017 Toilet Accelerator Cohort and others, all companies operating in low income markets. The modelling has extrapolated from the companies’ own forecasts, to scale up to a hypothetical city of 3 million people. This is based on selling competitive products and services derived from Toilet Resources, at market prices.

- Designing the Next Generation of Sanitation Businesses. Toilet Board Coalition, 2014. Page 4: Our analysis suggests that a home mobile toilet social business can be financially sustainable at scale. It would also require the help of Fast-Moving Consumer Goods (FMCG) companies to sell and distribute hygiene related products, as well as of IT companies to develop automated management tools.

- Additional Toilet Board Coalition reports and resources

WaterSHED - WaterSHED is a local NGO that builds markets to improve the water, sanitation, and hygiene practices of rural households across Cambodia, in support of the Sustainable Development Goals and the Government of Cambodia’s targets

- Economic Benefits of Market-Based Sanitation. WaterSHED, April 2019. Unlike the subsidy-based approach, the market-based approach places significant focus on ‘upstream’ economic benefits, with the objective of growing the local market for sanitation products. Consequently, applying the same cost-effectiveness methodology from the subsidy-based approach to the market-based approach would fail to capture much of its benefit. Such models do not account for the increase in revenues and profits to local producers that come as a result of these programs, nor the increase in jobs or impact on local wages.

- Strengthening the sanitation market system: WaterSHED’s Hands-Off experience. 2019 Conference paper - This paper describes the systems approach and guiding principles that WaterSHED has developed to strengthen markets for better sanitation and hygiene under its flagship ‘Hands-Off’ market-based sanitation (MBS) development program.

- HappyTap - HappyTap Co. is a social business headquartered in Vietnam that designs, manufactures, and sells the HappyTap – the first-of-its-kind portable sink to encourage consistent handwashing with soap. It is the only device on the market that offers a modern, convenient choice for the aspirational BOP consumer.

World Bank

- Introducing Commercial Finance into the Water Sector in Developing Countries. The World Bank, February 2017. This guidance note introduces the role of commercial finance in the WASH sector. It provides a step-by-step framework for building a local currency commercial finance market for the sector. While the emphasis is on bank lending, it is also applicable to capital market finance. Its aim is to help development specialists with limited exposure to the finance sector explore commercial WASH finance in their own countries.

- The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene. World Bank, 2016. The global costs of achieving universal basic WASH by the year 2030 are achievable under current overall sector spending. However, financing challenges remain in some regions and countries where current spending is insufficient to meet the SDG targets by 2030. In particular, resources need to be shifted to basic sanitation and hygiene in countries where the service gap is greatest.

- Benefits and Costs of the Water Sanitation and Hygiene Targets for the Post-2015 Development Agenda: Post-2015 Consensus. World Bank, 2015. This study has confirmed that drinking water supply and sanitation both generate high economic returns to society, with returns exceeding costs for all interventions at both 3% and 5% discount rates. The study showed that economic returns varied between different regions of the world.

Dan Campbell
USAID Water Communications and Knowledge Management Project
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1901 N. Moore St, Suite 1004
Arlington, VA 22209
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