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Client: 
Schoon water voor Mozambique
Project start: 
October-2013
Project end: 
July-2014
Staff: 
Ger Pannekoek
Staff: 
Stan Maessen

Generating sanitation business in Mozambique (FUSP)

WASTE supports the Frysian FUSP sanitation programme by helping to strengthen the local entrepreneurship of service providers in water and sanitation.

What we do

The Frysian Urban Sanitation Programme (FUSP) has been running in Mozambique since 2010 and is run by a Frysian consortium that is formed by water company Vitens, the waterboard for Frysland (Netherlands), the province of Frysland in the Netherlands and the Frysian municipalities. This consortium supports 7 cities in Mozambique, helping to improve their capacities in the area of water and sanitation.

WASTE supports this sanitation programme by helping to strengthen the local entrepreneurship of service providers in water and sanitation, taking into account the whole chain of collection, transport, treatment and (re)use. In addition the financial sector is approached to become involved in the sanitation sector.

How we do it

With the involvement of local business consultants and WASTE, an inventory of present small and large businesses in the cities is made.  The inventory consists of so-called estaleiros (small local entrepreneurs that produce and install cement slab), pit latrine emptiers, contractors, composting companies, and the like. All businesses are assessed and if suitable will be selected for support from the project. The support entails more than only technical training, it also includes other aspects of entrepreneurship, varying from doing the accounts to  writing a businessplan, linking up with local banks and micro financers.

FUSP has already identified and worked with 'estaleiros' and has supported these local businesses with technical training to improve the quality of their product.

To make contacts between sanitation businesses and banks possible WASTE is also talking with the banks. The sanitation sector is new to most financing institutes and  it is not easy to convince them that there are investment opportunities to be found there. WASTE can, however, build upon experiences from other countries and hopes to be able to make them interested.

Sustainability

To actually achieve sustainable sanitation in the cities where FUSP is active it is not enough to restrict yourself to improving the capacity of the municipalities to perform their duties and to awareness raising of the local population on the importance of good sanititation. It is very important that there are local businesses present that are capbable of providing these necessary services and products around sanitation. In addition, financing needs to be made available for these buisnesses.

Demand needs to meet supply, this means that if the citizens of the FUSP cities are convinced they need a toilet, they have to be able to buy them locally. It is the principle of the FUSP project that households have to pay for their sanitation facilities themselves as much as possible, so that there is no need for subsidies.

To achieve all this we use our Diamond approach to connect all stakeholders in the system.

Impact

As the programme is progressing well, FUSP is planning on intensifying the support, particularly in the cities, Chimoio, Gondola, Manica and Beira in the near future. These cities have been added in the second and third phase of the programme. The principle behind this intensification is that the better the local entrepreneurs are capable of doing their work, the more sustainable the investments of the FUSP will be. While FUSP is a project that will end, the purpose of the big or small businesses is to continue to exist and if possible to even grow. So by investing in a strong entrepreneurship FUSP is investing in continuity and scale.