It does not take a unicorn: how cities can attract private sector participation in addressing the urban sanitation crisis
Résumé
Private sector approaches to sanitation in low-income areas of fast-growing cities in the developing world have struggled to gain traction. The spending potential of the typical customer is lower, governments are operating on highly constrained budgets, and the benefits that wealthier areas have that can make running a business smooth are often lacking. And yet, there is no more urgent time to bring in the private sector than now – 60 million people are moving into cities every year and SDG 6.2 – the right to sustained sanitation – is woefully lacking. The private sector brings expertise in developing and generating demand for products and services, and therefore is well-positioned to tackle this challenge. Sanergy , a social enterprise based in Nairobi, Kenya, has pioneered a path to scale to serve millions of people with safe sanitation through a private sector approach. Sanergy has devoted considerable time and effort to establishing relationships with government, building the enabling environment and raising different types of capital from a diverse set of sources. This case study describes the journey of a private actor innovating in the sanitation sector to serve residents of low-income areas, and explains how Sanergy has been able to leverage funding depending on their firm development stage. It lays out how this social enterprise has built their model, with a specific intent to provide effective and appropriate advice not just to the practitioners, but also to the funders and government.
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