Water Export Dag 26 juni WASH workshop

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Water Export Dag 26 juni 2009

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Water Export Dag 26 juni WASH workshop

  1. 1. WASH Secretariat Water Sanitation and Hygiene Secretariat 18 juni 2009
  2. 2. Water and Sanitation: business opportunities at the bottom of the pyramid?
  3. 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. 4. Bottom of the Pyramid: • large volumes • low margins • weak institutions • difficult to access • bound to local context
  5. 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. 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. 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. 8. Step by step: • Getting Started • Making Plans • Field Testing • Going to market
  9. 9. Getting Started: • Do I have what it takes? • Talk to future clients • Initial cost calculations (TCO) • Product Market Combinations • Business Model
  10. 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. 11. Field Testing: • Talk to your future clients • Commercial Pilot • Testing and creating partnerships • Investigate local production • Prepare setting up local entity
  12. 12. Going to market: • awareness • availability • affordability • acceptability
  13. 13. Finance: • Blend of instruments • Depending on credit need • Subsidizing the non profitable top • Co financing to share the risks
  14. 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. 15. Proven practice
  16. 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. 17. A BUSINESS CASE CALLED WATER AND SANITATION

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