Currently 1.8 million die from diarrheal diseases annually. Safe water can reduce the burden of the disease. Household Water Treatment and Safe Storage (HWTS), is an intermediate option, particularly for individuals living on 1-3 dollars a day.
A solution – Household Water Treatment and Safe Storage (HWTS)
Therefore, the creation of local and affordable HWTS products is key for many countries, especially in rural areas. In these zones its cheaper to have HWTS than piped water. In order to insure this, a sustainable supply chain production and production line are necessary.
Antenna has collaborated with the Swiss Development Agency (SDC) to support 7 business models which deliver safe water to the base of the economic pyramid. The objective is also to consolidate viable business model in order to replicate them in other countries.
What is Safe Water Phase 2
This is a three year initiative (2015-2018) aiming to increase access to safe water particularly for people living at the base of the economic pyramid (BOP), with a human right to water framework.
Programme duration: 2015-2018
Total budget: Antenna financing, SDC, Aqua for All, IRC, FANSA: CHF 2,300,000
Impact: 2’000’000 beneficiaries/clients
PHASE 1: PRODUCT DEVELOPMENT 2010-2013
PHASE 2: BUSINESS MODEL DEVELOPMENT 2015-2018
KEY LEARNINGS OF SOCIAL WATER BUSINESS 3 business models work 4 business models in development
- ASPIRATION – Aspirational products See Case Study: Cambodia
- AFFORDABLILTY – Less than 3% of an individual of the BOP’s income.
- PROMOTION – Social marketing is key See Case Study: Nepal
- DELIVERY – Supply chains are the challenge See Case Study: Orissa
THE MAIN CHALLENGES
- Hardly breaking-even if volumes are low
- Vulnerable to shocks (climate, political)
- Not enough cash flow to pass through the “valley of death”
- Future earnings are far away: 5-10 years objectives
- Financial profitability & capex challenges – Long term commitement and mindset
- Volume AND blended finance needed to break-even (and have impact)
- Strong Management is key (ethical sales agents, efficient procedures and team)
- Impact to be measured, but has its cost, (human ressources, analysis, field trips)
- Conducive regulation & business environment
- Smart Subsidies – See Toolbox