Scaling up sanitation enterprises: The role of outcomes-based funding
Many sanitation enterprises working in low-income settings are, in theory, aiming for profitability.
But, in practice, sanitation is a difficult business. The cost base is significant, there are significant working capital needs and customers’ willingness-to-pay for sanitation services is limited.
Yet making progress towards SDG6 requires impact at scale that is sustained over the next 12 years to
2030. This raises two questions:
- How can we scale-up–sustainably–low-margin but high-impact sanitation enterprises, so that they provide services to as many customers as possible?
- And how can we orient these sanitation enterprises towards providing services for the lowest-income groups, not just those with the highest willingness-to-pay?