By David Sparkman, Global Program Analyst-Sanitation, Water for People. Prepared for the Monitoring sustainable WASH service delivery symposium, Addis Ababa, Ethiopia, 9-11 April 2013.
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From beneficiaries to businesses to the big picture: Monitoring Market-Based Approaches to Sanitation Development
1. FROM BENEFICIARIES TO BUSINESSES TO
THE BIG PICTURE
Monitoring Market-
Based Approaches to
Sanitation
Development
Monitoring Sustainable WASH
Service Delivery Symposium
Addis Ababa, Ethiopia
April 10,2013
David Sparkman
Global Program Analyst-Sanitation
1
2. BACKGROUND
“Sanitation as a Business”
• What? – Sanitation Market Development,
Sanitation Marketing, etc.
• Why? – Market incentives, market proclivity for
growth, sustainability focus
• Where? – Malawi, Uganda, Rwanda, Bolivia,
Peru, Ecuador, India, Guatemala
• When? – Paradigm shift internally in 2008,
larger-scale change in strategy 2010
2
3. BACKGROUND (CONTINUED)
• How? – Supporting businesses along sanitation value chain,
identifying finance opportunities. Minimize direct subsides
• With Who? – Business Development Service (BDS) providers as key
implementers; identified sanitation entrepreneurs; (recently) MFIs,
Diagram thanks to Bill & Melinda Gates Foundation 3
4. SOME CONTEXT AND CAVEATS
• Presenting a proposed strategy for monitoring (for discussion,
feedback), not a final product with results, analysis, etc.
• Not a justification for the potential and limitations of the sanitation-as-
a-business program model at this stage
• Limitations of this monitoring already identified (primarily around
sustainability of monitoring itself):
– Government is not directly involved (although results and
development is shared with them)
– Too many indicators
– Water For People is paying for all of it
• Overall Goals:
– Program and Strategy Evaluation
– Leading Indicators
4
5. HOW DO WE ATTEMPT TO MONITOR
SANITATION AS A BUSINESS?
Three Levels:
1. Household
2. Key actors: Service
Provider / Business
(and/or finance
institution if
applicable)
3. Big Picture : The
overall Sanitation
―Ecosystem‖
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6. LEVEL ONE: HOUSEHOLD
• Level of Sanitation Service Access Color Label
– Household is scored on Black No Sanitation Service
different indicators via surveys, Inadequate Level of Sanitation
Red
observations Services
– Level of Access to a facility Orange Basic Level of Sanitation Services
– Use Intermediate Level of Sanitation
Yellow
– State of infrastructure Services
– Sludge management
– Satisfaction Green High Level of Sanitation Services
– Identified Problems, ease of
maintenance
Future monitoring (2013): Customer
Satisfaction and household socio-
economic profiles
Thanks to IRC’s sanitation service levels for inspiring much of this framework 6
7. LEVEL TWO: BUSINESS (SERVICE PROVIDER)
Activity Business A B C D E F Total
Pits and Septic
47 24 45 44 12 5 177
Tanks Emptied
Drums Emptied 172 80 192.5 136 88 35 703 .5
Pit/Septic
Emptying 618,200 336,500 684,011 573,000 261,065 155,000 2,627,776
Turnover (MWK)
Number of Low
Income Areas 4 2 6 4 2 2 10
reached
Staff Utilization 3 4 6 4 3 3 23
Transport Costs
81,000 88,500 161,350 87,275 48,000 35,000 501,125.00
for Sludge (MWK)
Dumping Costs
51,250 11,100 28,850 20,450 13,400 1,800 126,850.00
(MWK)
Wages Paid
141,000 118,500 143,359 159,000 24,000 20,000 605,859.00
(MWK)
Latrines
2 4 1 7
Constructed
Value of Latrines 240,000 480,000 120,000 840,000.00
Investment Made 4,217,500
2,000,000
into Business
7
Sampling of Supported-Business Monitoring in Malawi
8. LEVEL TWO (CONTINUED)
• Almost 50 supported businesses / service providers in six countries (India, Peru, Bolivia,
Malawi, Rwanda, and Uganda)
• 4-5 general business models in both rural and peri-urban areas
• 5 financial entities that have provided sanitation loans
Months August September October November December
Number of latrines built 6 8 12 - -
by month
Number of loans taken 6 – 2400,000 4 – 3200,000 9 – 3600,000 - -
out, and the amounts
Number of orders for 12 16 21 20 6
latrines
Amount of loan paid - - 75000 25000 50000
back to SACCO, by
customers, by month
Table: 2012 Monitoring of SACCO in rural Uganda 8
9. LEVEL THREE: ―THE BIGGER PICTURE‖
Evaluating components of the
overall sanitation market
“ecosystem,” and how well
different market functions are
being carried out and
sustained:
Sustainability of people carrying
out roles:
• Motivations/Incentives
• Capacity
• Who should be carrying out
the roles, who is paying for
them to be carried out
9
10. LEVEL THREE—BIG PICTURE (CONTINUED)
Some components that are evaluated:
– Demand Creation (and Sustention)
– Supply of services and support functions (along entire chain)
– Government playing appropriate role (public sector enabling
environment)
– Finance alternatives available
• For service providers
• For households
– Treatment
– M&E
– Level of dependency on outside aid
Future : Market share/penetration of supported businesses based on
theoretical demand, ROI--cost/benefit evaluations of intervention
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11. CONCLUSIONS AND NEXT STEPS
• Monitoring the sanitation market
ecosystem is complex
– Difficult to replicate “results”,
objectivity
– Difficult to sustain –affordability
– Plausible attribution
• However, counting toilets as the only
outcome does not shed light on
sustainability prospects, nor
hindrances
• Focus on balancing these issues, and
identifying:
– Leading indicators
– Partners
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12. Acknowledgments and other Resources on
Sanitation Market-Based Development
• Other organizations active in this
type of approach in sanitation:
iDE, WSP, PATH, WSUP, WaterAid
• IRC
• Bill & Melinda Gates Foundation
• Market-based development orgs
in general: DCED,
M4P/Springfield
• Colleagues at Water For People
• All of you—for your attention,
feedback, questions and
comments--Thanks!
12
Editor's Notes
Providing a quick background on WfP’s approach, rationale, etc.
Discuss level of service monitoring, and planned customer satisfaction surveys, etc. For 2013
Discuss strategies for measuring the businesses
Discuss how we assess these areas with partners
Highlight challenges, feasibility of this model, etc.