This learning note describes and analyses the four business models elaborated by USAID Transform WASH, which have been applied over the last six years, with recommendations to improve their financial viability.
|Title||USAID Transform WASH business models|
|Publication Type||Briefing Note|
|Year of Publication||2022|
|Authors||Osterwalder, L, Hailegiorgis, B, Mebrate, E|
|Secondary Title||USAID Transform WASH learning note|
|Pagination||18 p. : 17 fig., 5 tab.|
|Publisher||USAID Transform WASH and IRC WASH|
|Place Published||Addis Ababa, Ethiopia|
Since its launch in 2017, USAID Transform WASH (T/WASH) has adapted and tested business models designed to ensure a sustainable supply of WASH products and services. These business models have been evolving. This learning note describes and analyses the four T/WASH business models, which have been applied over the last six years: (1) Product manufacturing and construction by "advanced manufacturers" or "contractors"; (2) Product manufacturing and installation by "basic manufacturers"; (3) Door-to-door simple upgrades by "mason/installers"; and (4) Plastic sanitation (and other hardware) product sales and support by "retailers". The main lessons learned are: Transform WASH business models are feasible; On average, sales and profits are relatively low; and Door-to-door simple upgrades are the most promising approach for scaling. Recommendations are provided to improve the financial viability of the business models.
About Transform WASH
USAID Transform WASH aims to improve water, sanitation, and hygiene (WASH) outcomes in Ethiopia by increasing market access to and sustained use of a broader spectrum of affordable WASH products and services, with a substantial focus on sanitation. Transform WASH achieves this by transforming the market for low-cost quality WASH products and services: stimulating demand at the community level, strengthening supply chains, and improving the enabling environment for a vibrant private market.