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Sanitation Microfinance Tanzania
3rd Working Group Meeting
Sea Cliff Dar es Salaam
4th December 2014
MicroSave Consulting Ltd
MicroSave
2
 A consulting company in financial inclusion, 15 years of
experience, 100+ consultants.
 Support financial institutions to develop new products,
operational strategy and improve access to financial services
among the low income people.
 Current Service areas: Banking operations, digital financial
services, Social performance management and livelihoods
enhancement financing
 Livelihoods enhancement financing: (i) support with Water,
Sanitation, Energy, Housing microfinance and agriculture.
 Africa: 2 officers, 30 staff,18 countries. Asia: India and 10
SEA countries.
Role in SanFin Tanzania Project
Activities3
1. Formation of the working group
 MicroSave and Tremolet Consulting actively sought to form a
working group of both WASH organizations and financial institutions.
2. Engagements with Microfinance Institutions
 Contacted at least 10 financial institutions to participate in the SanFin
project e.g. DCB, FINCA Tanzania, CRDB, KCB Tanzania, TGT, xx
community Bank,
 Results:
 Few commercial banks were interested.
 2 MFIs participated  indication of challenges related to motivating
financial institutions to actively participate in the sanitation sector.
3. The Microfinance Housing Working Group: Had a positive view of SanFin
and enabled us to identify the important linkage between sanitation and
housing.
4. Training and capacity building: This has been the core role of MicroSave.
Sanitation Microfinance
Framework
Product
Roll out
Under development with SinFin Tanzania experience
Strategy &
Product
Diversification
Product
Development
6 moths
Sanfin Team
Pilot Test
6  12 moths
 MFI/NGOs buy-
In,
 Training ,
 Demand
mapping &
creation
(continous)
SanFin Project Components
5
1. Clients / Customer Needs Assessment
 MicroSave trained partners on skills in market research
 Aimed to help partners identify potential clients sanitation and
financing needs
 A total of 14 staff trained on Market research held in February 2013.
2. Financial Products Concepts Refinement/Development
 Partners supported to undertake potential clients needs assessment
 Results:
 CCI undertook a market research on the financing needs among its
target members/clients.
 ECLOF Tanzania undertook a research in Arusha.
 Tujijenge Tanzania (trained earlier by MicroSave) decided to adopt
an existing product.
3. Online/offsite support to key staff of piloting organisations.
6
Training and Support
Market Research for Sanitation
Financing
7
 Importance
 Identification of clients needs
 Identification of financing approaches and product concepts
 Types of Design:
 (i) Qualitative to capture potential clients views, ideas and concerns.
 (ii) Quantitative: using structured questionnaire to measure the proportion of clients
 Results:
 Generally, the research results should inform you about the types of client to focus on and
the financial requirements
 Outcome of MicroSave research training:
(i) SanFin Tanzania partners determined the potential demand for sanitation finance
(ii) Partners identify areas of improvement on existing programs e.g. Jenga Fund
adopted the approach of extending loans outside the Federation groups,
TTz refined its existing business loans.
(iii) New product development e.g. ECLOF Tanzania developed new
USAFI range of financial products.
Product Pilot-Testing and Rollout
8
 Coverage
 Pilot testing of new or refined products is very important
 Testing enables the organisation to adjust systems and learn from any mistakes
 Participants Trained
 3 days course undertaken in June
 A total of 8 staff members participated
 1 CEO attended (Special thanks to CEO of ECLOF Tanzania for the commitment shown)
 Outcome
 CCI commenced its pilot in Temeke
 ECLOF Tanzania launched a pilot in December 2014
 TTz disbursed Tsh. 23 million to Sanitation enterprises to improve sludge and solid waste
collection in Dar es Salaam
 Lessons
 The need for ongoing engagement with managers and staff in an organisation to see
business.
 Toilets are public utilities. There is need to actively involve community members/leaders for
successful implementation e.g. Temeke elders.
 Testing requires some extended time (12  24 months) span for organisations to test
9
Wider Context and Future Engagement
MDG Targets and Achievements
10
 MDG Target 7.C: Halve, by 2015, the proportion of the
population without sustainable access to safe drinking
water and basic sanitation.
 77 countries have met the MDG targets for sanitation
 79 countries are off track to meet the MDG target for
sanitation
 2.5 Billion people will lack improved sanitation in 2015
 Source: http://www.wssinfo.org/
11
Situation in Eastern Africa Region
12
Regional Sanitation Financing Market
Potential
13
SANIATATION COVERAGE ESTIMATES (The WorldBank/UNICEF JMP, 2014)
Country Tanzani
a
Uganda Kenya Rwanda Burundi Congo Ethiopia
Improved
facilities
12% 34% 30% 64% 47% 15% 24%
Shared 10 23 26 10 10 30 13
Unimprove
d
65 35 31 23 40 47 26
Open
Defecation
13 8 13 3 3 8 37
Unimprove
d+Open
78% 43% 44% 26% 42% 53% 61%
Situation in Eastern Africa Region
14
Microfinance Situation
15
 Access to finance is increasing generally with
many interventions in financial sector e.g.
(i) Microfinance policies and laws,
(ii) banks going down market
(iii) Digital finance
 Tanzania: Reduction to 32% (adult population not
accessing formal finance)
 Kenya: Reduction to 26%
Why the slow Response to Sanfin?
1. Limited understanding of the sanitation sector
o FIs are familiar with business and trading sectors
o Lack of strategy on sanitation financing
o Low staff capacity
2. Sanitation operators slowly commercializing their activities
o Weak legal structure e.g. CBOs, FBOs, individuals etc
o Government funding expectation
o Excessive focus on advocacy, capacity building/training
o NGOs are not familiar with the demands of FIs e.g. Financial
proposal
o Limited commercialization of WATSAN activities
3. Unclear regulatory environment
o Unclear policy especially on private systems
o However, public actors slowly appreciating role of private
operators due to limited public funds
From Self-Helps to Sanitation
Enterprises
17
 Sustainable Sanfin = adoption of market / enterprise
approaches
 Types of Sanitation enterprises:
1. Private: Individual/Small company
o Individuals operating a small water kiosk, Toilet and bathroom
blocks
o Individual operating a public toilet facility on a lease
arrangement with country or municipal council e.g. Iko Toilet
o Company providing mobile/portable toilet facilities for e.g.
funerals, weddings, public rallies etc.
2. Group Owned Enterprise
o A group operating sanitation services to the community e.g.
youth groups, providing HHs with polythene bags and collect
HH waste on regular schedules
o SHGs in communities operating Water, Toilet and bathroom
MicroSaves Future Engagement
18
 MicroSave will be available to any of the SanFin Tanzania
partners in 2015.
 We can provide limited online response to queries.
 Hiring MicroSave for specific training or study e.g.
 CCI
 Basic Microfinance training
 Lending systems (procedures and delinquency management) advise
 Tujijenge Tanzania:
 Possible sanitation enterprise mapping study
 ECLOF Tanzania
 Pilot Test Review and Evaluation to identify areas of strengthening
 Pilot Performance documentation for resource mobilisation
THANK YOU VERY MUCH
19
Feel free to contact us
George Muruka
[Muruka@microsave.net]
MicroSave
[www.microsave.org]

More Related Content

MicroSave

  • 1. 1 Sanitation Microfinance Tanzania 3rd Working Group Meeting Sea Cliff Dar es Salaam 4th December 2014 MicroSave Consulting Ltd
  • 2. MicroSave 2 A consulting company in financial inclusion, 15 years of experience, 100+ consultants. Support financial institutions to develop new products, operational strategy and improve access to financial services among the low income people. Current Service areas: Banking operations, digital financial services, Social performance management and livelihoods enhancement financing Livelihoods enhancement financing: (i) support with Water, Sanitation, Energy, Housing microfinance and agriculture. Africa: 2 officers, 30 staff,18 countries. Asia: India and 10 SEA countries.
  • 3. Role in SanFin Tanzania Project Activities3 1. Formation of the working group MicroSave and Tremolet Consulting actively sought to form a working group of both WASH organizations and financial institutions. 2. Engagements with Microfinance Institutions Contacted at least 10 financial institutions to participate in the SanFin project e.g. DCB, FINCA Tanzania, CRDB, KCB Tanzania, TGT, xx community Bank, Results: Few commercial banks were interested. 2 MFIs participated indication of challenges related to motivating financial institutions to actively participate in the sanitation sector. 3. The Microfinance Housing Working Group: Had a positive view of SanFin and enabled us to identify the important linkage between sanitation and housing. 4. Training and capacity building: This has been the core role of MicroSave.
  • 4. Sanitation Microfinance Framework Product Roll out Under development with SinFin Tanzania experience Strategy & Product Diversification Product Development 6 moths Sanfin Team Pilot Test 6 12 moths MFI/NGOs buy- In, Training , Demand mapping & creation (continous)
  • 5. SanFin Project Components 5 1. Clients / Customer Needs Assessment MicroSave trained partners on skills in market research Aimed to help partners identify potential clients sanitation and financing needs A total of 14 staff trained on Market research held in February 2013. 2. Financial Products Concepts Refinement/Development Partners supported to undertake potential clients needs assessment Results: CCI undertook a market research on the financing needs among its target members/clients. ECLOF Tanzania undertook a research in Arusha. Tujijenge Tanzania (trained earlier by MicroSave) decided to adopt an existing product. 3. Online/offsite support to key staff of piloting organisations.
  • 7. Market Research for Sanitation Financing 7 Importance Identification of clients needs Identification of financing approaches and product concepts Types of Design: (i) Qualitative to capture potential clients views, ideas and concerns. (ii) Quantitative: using structured questionnaire to measure the proportion of clients Results: Generally, the research results should inform you about the types of client to focus on and the financial requirements Outcome of MicroSave research training: (i) SanFin Tanzania partners determined the potential demand for sanitation finance (ii) Partners identify areas of improvement on existing programs e.g. Jenga Fund adopted the approach of extending loans outside the Federation groups, TTz refined its existing business loans. (iii) New product development e.g. ECLOF Tanzania developed new USAFI range of financial products.
  • 8. Product Pilot-Testing and Rollout 8 Coverage Pilot testing of new or refined products is very important Testing enables the organisation to adjust systems and learn from any mistakes Participants Trained 3 days course undertaken in June A total of 8 staff members participated 1 CEO attended (Special thanks to CEO of ECLOF Tanzania for the commitment shown) Outcome CCI commenced its pilot in Temeke ECLOF Tanzania launched a pilot in December 2014 TTz disbursed Tsh. 23 million to Sanitation enterprises to improve sludge and solid waste collection in Dar es Salaam Lessons The need for ongoing engagement with managers and staff in an organisation to see business. Toilets are public utilities. There is need to actively involve community members/leaders for successful implementation e.g. Temeke elders. Testing requires some extended time (12 24 months) span for organisations to test
  • 9. 9 Wider Context and Future Engagement
  • 10. MDG Targets and Achievements 10 MDG Target 7.C: Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation. 77 countries have met the MDG targets for sanitation 79 countries are off track to meet the MDG target for sanitation 2.5 Billion people will lack improved sanitation in 2015 Source: http://www.wssinfo.org/
  • 11. 11
  • 12. Situation in Eastern Africa Region 12
  • 13. Regional Sanitation Financing Market Potential 13 SANIATATION COVERAGE ESTIMATES (The WorldBank/UNICEF JMP, 2014) Country Tanzani a Uganda Kenya Rwanda Burundi Congo Ethiopia Improved facilities 12% 34% 30% 64% 47% 15% 24% Shared 10 23 26 10 10 30 13 Unimprove d 65 35 31 23 40 47 26 Open Defecation 13 8 13 3 3 8 37 Unimprove d+Open 78% 43% 44% 26% 42% 53% 61%
  • 14. Situation in Eastern Africa Region 14
  • 15. Microfinance Situation 15 Access to finance is increasing generally with many interventions in financial sector e.g. (i) Microfinance policies and laws, (ii) banks going down market (iii) Digital finance Tanzania: Reduction to 32% (adult population not accessing formal finance) Kenya: Reduction to 26%
  • 16. Why the slow Response to Sanfin? 1. Limited understanding of the sanitation sector o FIs are familiar with business and trading sectors o Lack of strategy on sanitation financing o Low staff capacity 2. Sanitation operators slowly commercializing their activities o Weak legal structure e.g. CBOs, FBOs, individuals etc o Government funding expectation o Excessive focus on advocacy, capacity building/training o NGOs are not familiar with the demands of FIs e.g. Financial proposal o Limited commercialization of WATSAN activities 3. Unclear regulatory environment o Unclear policy especially on private systems o However, public actors slowly appreciating role of private operators due to limited public funds
  • 17. From Self-Helps to Sanitation Enterprises 17 Sustainable Sanfin = adoption of market / enterprise approaches Types of Sanitation enterprises: 1. Private: Individual/Small company o Individuals operating a small water kiosk, Toilet and bathroom blocks o Individual operating a public toilet facility on a lease arrangement with country or municipal council e.g. Iko Toilet o Company providing mobile/portable toilet facilities for e.g. funerals, weddings, public rallies etc. 2. Group Owned Enterprise o A group operating sanitation services to the community e.g. youth groups, providing HHs with polythene bags and collect HH waste on regular schedules o SHGs in communities operating Water, Toilet and bathroom
  • 18. MicroSaves Future Engagement 18 MicroSave will be available to any of the SanFin Tanzania partners in 2015. We can provide limited online response to queries. Hiring MicroSave for specific training or study e.g. CCI Basic Microfinance training Lending systems (procedures and delinquency management) advise Tujijenge Tanzania: Possible sanitation enterprise mapping study ECLOF Tanzania Pilot Test Review and Evaluation to identify areas of strengthening Pilot Performance documentation for resource mobilisation
  • 19. THANK YOU VERY MUCH 19 Feel free to contact us George Muruka [Muruka@microsave.net] MicroSave [www.microsave.org]

Editor's Notes