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Financing Waste and Sanitation

From Spending to Earning

Principles for Financing Informal

EnterprisesNew York, 19 September 2011

Anne Scheinberg and Jacqueline BarendseWASTE, The Netherlands

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Conclusion

Focus (Sanitation + Waste)

Spending Earning Service sector + Value chain

Financing informal enterprises

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Health benefits

Piped infrastructure

Pollution

Water, waste, sanitation

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Spending models

andEarning models

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Spending model

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Earning model

Building on successful market

& value chain transactions

and institutions andoptimising them

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Peri-urban areas

These guys are extremely liquid

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Introduction: Failure of the spending model

9

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Shifting to Earning

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SpendingEarning (peri-urban areas)

Spending Earning

What Things / Assets Doing

Financing Capex Opex

Other Large scale

(Inter)national

provider

Grant / subsidies

Multiple scale

Local provider

Regional provider

Local paying client

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Earning models

Service Sector Value Chain

Solid Waste

Sanitation

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Service Sector

Solid Waste

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Service Sector

Sanitation

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Value Chain

Solid Waste

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Value Chain

Sanitation Value Chain

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Earning models

Service Sector Value Chain

Solid Waste + +++

Sanitation + +/-

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Service Sector and Value Chain

Service Sector Value Chain

Value Negative value Positive value

Payment Doing removal Obtaining

Driver

Business type

People

Polluter

Doing

Dumb muscles

End User Demand

Trading

Smart muscles

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Service Sector Value Chain

Financing Need Equipment Working capital

(trading)

Risks Political favourLate payments

Governance

problems

Vulnerability is to

local circum-

stances

Global economicSituation and

price fluctuations

Vulnerability to

global economic

circumstances

Service Sector and Value Chain

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Service and Value - linkage

Service Sector

Value Chain

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WASTE activities

Service Sector (pro-active) Value Chain (re-active)

Acknowledgement entrepreneurs

Municipal policy plans

Organise and train

Safe disposal / containment

Support entrepreneurs

Professionalise, organise

Support and initiate research

Focus on self-help, strengths andweaknesses

FINANCING

Waste Ventures

Informal Finance Facility

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Waste Ventures

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Local Banks

Informal Finance Facility

Informal

Finance

Facility

f i i i

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Informal Finance Facility

Identify Product Market combinations

Develop adequate financing mechanisms

Mobilise local financing partners (banks)

Build center of experience (lead partner)

C l i

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Conclusion

Focus (Sanitation + Waste)

Spending Earning Service sector + Value chain

Informal Finance Facility

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Thank you for your

attention