DESIGNING THE NEXT GENERATION OF SANITATION BUSINESSES

Two and a half billion people still do not have access to improved sanitation. This situation has dramatic consequences on health: the World Health Organization estimates that diseases related to unsafe sanitation are responsible for 6% of global deaths. The development community has been devoting increased attention to this crisis, but the Millennium Development Goal sanitation target will likely not be reached by 2015.

Fortunately, a number of market-based models have emerged in both rural and urban areas to address the sanitation crisis. They all serve the BoP in a sustainable manner by offering improved solutions, at a price that the poor are willing and able to pay. In this report, we analyze 2 models that combine an aspirational value proposition for low-income families and a strong potential for financial sustainability: projects that facilitate the creation of a local, sanitation market in rural areas and enterprises servicing home mobile toilets in urban areas.

Based on an in-depth analysis of 12 projects representative of these 2 models, the report suggests strategies to overcome challenges to sustainability and scale. Finally, the report explores how these models would benefit from corporate and industrial expertise and resources, opening up opportunities for large corporations to contribute to solving the sanitation crisis.