Water Export Dag 26 juni 2009

1. WASH Secretariat
Water Sanitation and Hygiene Secretariat
18 juni 2009

2. Water and Sanitation:
business opportunities at the
bottom of the pyramid?

3. Background
• In order to accomplish both economic and societal goals, there is a
trend towards an entrepreneurial way of development
• Southern countries offer a potentially interesting market (BOP):
more and more Northern and Southern based businesses aim to
reach this market
• Regarding Appropriate Technology (AT) for water and sanitation,
the Netherlands has the know-how to position itself well

4. Bottom of the Pyramid:
• large volumes
• low margins
• weak institutions
• difficult to access
• bound to local context

5. How to cater the BOP?
• understand the local context
• transform need to effective demand
• focus on accessibility and affordability
• start small, be ready to scale up quickly
• create partnerships

6. What kind of products?
• Accessible: affordable, spare parts available
• Functional: easy to operate, low maintenance costs
• Of high quality: solid, easy to distribute, small compact
• Sustainable: durable
• Manageable: straight forward
• Enabling environment: education, instruction

7. Successful Product:
Affordable: EUR 7,=
Productive: > 30 liters per day
Easy to use: simple and robust
Spare parts available: EUR 3,=
Durable: > 3 yrs

8. Step by step:
• Getting Started
• Making Plans
• Field Testing
• Going to market

9. Getting Started:
• Do I have what it takes?
• Talk to future clients
• Initial cost calculations (TCO)
• Product Market Combinations
• Business Model

10. Making Plans:
• Co create (product development)
• Lean and mean (low cost base)
• Tap into existing infra structures
• Produce locally (but stay in control)
• Share benefits (with selected partners)

11. Field Testing:
• Talk to your future clients
• Commercial Pilot
• Testing and creating partnerships
• Investigate local production
• Prepare setting up local entity

12. Going to market:
• awareness
• availability
• affordability
• acceptability

13. Finance:
• Blend of instruments
• Depending on credit need
• Subsidizing the non profitable top
• Co financing to share the risks

14. Proven practice
BWNF
• Very affordable and high quality ceramic filter
• Local Production Facility in India (Auroville)
• Promising order portfolio (40.000)
• Clean Water to > 200.000 Indian people

15. Proven practice

16. Proven practice
Supplier
Scope of business
(Social) Investor Local Entrepreneur
Grants
Aqua Shop
Tanzania
Local entrepreneur
Financiers
Aqua Shop Blocks Aqua Shop
Franchises
Aqua Shop Blocks Aqua Shop
Franchises
Aqua Shop Blocks Aqua Shop
Franchises
Aqua Shop Blocks Aqua Shop
Franchises
SWE
SWE
SWE
SWE
Consumers

17. A BUSINESS CASE
CALLED
WATER AND SANITATION