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Major barriers to entry for sanitation start-ups in Ghana are the lack of start-up capital; lack of access to affordable banking services (particularly the cost of borrowing); inadequate public infrastructure; and the high cost of creating partnerships with the public sector.

TitleBarriers and opportunities for sanitation SMEs : a study of the wider market system in Ghana : topic brief
Publication TypeBriefing Note
Year of Publication2017
AuthorsScott, P, Forte, J, Mazeau, A
Pagination31 p. : 3 fig., 5 tab.
Date Published09/2017
PublisherWater & Sanitation for the Urban Poor (WSUP)
Place PublishedLondon, UK
Publication LanguageEnglish
Keywordscontainer-based sanitation, low-income communities, market studies, small and medium-sized enterprises
Abstract

This Topic Brief presents a study of the wider market barriers and opportunities facing small and medium-sized enterprises (SMEs) in sanitation in Ghana. Conducted by i-San, it is derived from a wider study funded by the Bill & Melinda Gates Foundation, which aimed to understand the impact of these factors on the ability of businesses to reach low-income urban communities with appropriate products and services. 

Major barriers to entry for sanitation start-ups in Ghana are the lack of start-up capital; lack of access to affordable banking services (particularly the cost of borrowing); inadequate public infrastructure; and the high cost of creating partnerships with the public sector.

Ghana’s challenging micro-economic climate is the primary barrier impacting the viability of sanitation SMEs. This includes high interest rates; limited access to operational finance; currency depreciation; and high cost of utility.

The study identified several opportunities to support sanitation SMEs in Ghana, including innovative finance; training and business development support; reinforcement of representative associations; and reinforcing the policy and regulatory environment. [publisher's abstract]

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URLhttps://www.wsup.com/insights/barriers-and-opportunities-for-sanitation-smes-a-study-of-the-wider-market-system-in-ghana/
Citation Key83349

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