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Social Entrepreneurs in the Water, Sanitation and Hygiene Sector Net Impact Conference – Cornell University November 13th, 2009
The Partnership Implementing NGOs, Academic Institutions, and Health Organizations Corporations and Foundations Provide Connections to New Corporate Partners Provide Seed Funding Conduct Monitoring and Evaluation Conduct Research Implement Projects GWC Government Agencies Provide Co-funding Review Projects and Collaborate in Learning
Our Corporate Engagement Hinges on Innovation and Collaboration
Greatest Barriers: limited focus on long term impact & Lack of public information Greatest Innovation Principles: Moving people up the Sanitation Ladder & increase accountability through Design for the Long Term Matrix framework
Finalists: Himanshu Parikh Consulting Engineers, India Naandi Foundation, India Swayam Shikshan Prayog, India Ecotact, Kenya City Garbage Recyclers, Kenya The Clean Shop, South Africa Centre for Community Organisation and Development (CCODE), Malawi Manna Energy Foundation, USA& Rwanda WaterPartners, USA Winners: Swayam Shikshan Prayog Naandi Foundation Himanshu Parikh Consulting Engineers Coca-Cola Grant Recipients: Naandi Foundation Ecotact Clean Shop Manna Energy Changemakers finalists & winners
Clean shop: South Africa • Context: Rampant dirty toilets in secondary schools with resultant non-use • Objective: teach children to refuse to use dirty toilets and expand program throughout South Africa • Selection: 100 schools in province of guateng. • Delivery: In partnership with university of venda, teach & certify unemployed women to maintain facilities. work closely with parents & teachers to ensure sustainability • Terms: self-financed with proven track record in marketing to private sector companies; user-fee model in public areas; costs for schools program subsidized by provincial government & sale of cleaning supplies to community • Outcome: • Focus on behavior change component while ensuring o&m through delegated management models - parent/teacher involvement • Project fell through even though implementation plan sound • Over-reliance on one key stakeholder i.e. provincial government • Costs quoted for re-stocking & maintaining cleanliness seemed high Potential Take-aways: • Successful local entrepreneurs who operate in difficult operating environments often foiled if credible partners (particularly in public sector) not on-board
Manna Energy Foundation: USA & Rwanda • Context: Claim carbon credits for treated water and use profits to build biogas generators to fuel stoves & lights. • Objective: Supply 3% of population with clean water & energy – 236,000 rwandans. Employ 800 rwandan staff. • Selection: all secondary schools in rwanda - 500 • Delivery: Install 500 water treatment systems (gravity & photovoltaic driven filtration & UV disinfection). Use biogas generators to reduce waste. • Terms: 14 years; initial investment $20 million; expected revenue from cers $100 million; expected profit $40 million; no cost to consumers • Outcome: • Obtaining cer status from un based on premise ‘1 litre of treated water is a litre of water that no longer “should” be boiled for equivalent health impacts.’ • GWC grant allowed manna to apply for cer status (built initial water system & biogas generator) • Agreement signed with private entity to purchase cers, which will allow manna to expand & earn profits. • Have not managed to procure all initial funding committed from private partners Potential Take-aways: • GWC enabled a highly innovative entrepreneur to create a new model which could be commercially viable in the long run
Lessons Learned • Need to make entrepreneurs ‘investment-ready,’ • Grants for business training (financial management skills or business plan development) • Direct advisory support or strategic partnerships • If grants & loans provided to same entrepreneur, clarity to be provided with emphasis on repayment components of investments • No dearth of innovation of low-cost ws&h technologies in the developed world • funding for testing to assess viability • More focus needed in sector on education components (demand creation) as opposed to purely financing • Flexible financing mechanisms needed
Thank you! To learn more about us please visit: www.globalwaterchallenge.org http://www.changemakers.com