Transform WASH Public Private Collaboration Sanitation Marketing Sanitation Marketing Platform Addis Ababa, Ethiopia 07, December, 2017 11/15/2018`1 FOOTER GOES HERE

Introduction The study is about public private collaboration going beyond PPP. Public Private Partnership is based on a contractual arrangement Mapping international experiences on sanitation marketing Framework for public private collaboration Looking in to challenges and opportunities in Ethiopia

Public Private Collaboration in WASH WASH sector highly public dominated Public sector financier, owner and operator Private Sector provides services in study and design, construction, supply of goods, waste collection services and maintenance Banks and MFIs limited role in fund

PUBLIC SECTOR PRIVATE SECTOR Strengthening demand Awareness raising and product promotion Public sector as customer of products and or services Increasing customer purchasing power (access to finance) Strengthening the enabling environment Political economic-environment Regulatory framework Institutional framework including bureaucracy Strengthening the supply chain Reduced business costs (investments, working capital & operational costs) Research and development Business development (incl. access to finance) Product promotion and social marketing Enhanced product offerings Business associations to enhance communication, collaboration, partnering and learning with public sector Lobbying with public sector Complying with rules and regulations Strengthening the supply chain and tapping into demand Research and development (incl. market research) Product development (incl. diversification and quality aspects) Convenient sales outlets Sustainable sanitation provision Improved supply of desirable & affordable sanitation products and services Increased demand for sanitation products and services PUBLIC SECTOR Goals and activities to enhance sanitation markets PRIVATE SECTOR Desired Goals

Strengthening enabling environment Improving supply chain Global scan-Activities and countries x = example of model exists x = no example, but challenge discussed Banglade sh Bolivia Cambodi a Guatema la Honduras India Nicaragu a Peru Malawi Rwanda Uganda Strengthening demand Public Awareness and product promotion    Public sector as client Increasing client purchasing power Private Product promotion and social marketing Enhance product offerings Strengthening enabling environment Regulatory framework x Bureaucracy Physical & organisational infrastructure Political economic environment Governance Associations to facilitate communication and feedback to public Co-learning with public Lobbying and partnering with public Complying with rules and regulations Improving supply chain Reduced business costs Research and development Business development support Product development Convenient selling outlets

What we can learn from other countries Sanitation Fairs in Peru: Regional governments sponsored sanitation fairs for local entrepreneurs to exhibit sanitation products and services for low-income families Public Sector as a Client in Rwanda: The public Vision 2020 program in Rwanda is constructing toilets for very poor households, while trying to avoid disrupting markets. Business friendly costing, Malawi: City cut the fee for dumping fecal waste by two thirds allowing businesses to cut their own price

Lessons from other countries 4. Public-private contract, India: Public in charge of development and major repairs of infrastructure, private for operating and administering latrines 5. Increase purchasing power, Nicaragua: Local government pay part of the cost to suppliers and HH pay the rest 6. Public-private dialogue, Bolivia/Malawi: Platform for dialogue between public, private sector and consumers to build common ground and detect problems early

Ethiopian Context Policy and Regulatory Framework: No sanitation policy addressed in sector policies, No clear regulatory framework Limitations in the Program (OWNP): Role of private sector not clearly discussed Access to Finance: Commercial Banks lending practice challenging, MFI limited capital and not focus credit product

Ethiopian Context WASH behaviour and awareness: HEP main instrument and more effective in rural than urban settings (complexity) Household financial capacity: Sanitation not considered as priority expenditure item (market and income) Business Environment: More encouraging for priority sectors Product development: Limited public investment

How to strengthen sanitation markets-Lessons for Ethiopia Strengthening Demand Raise awareness and promote products- HEW facilitate products and services and link interested households to local businesses Priming the market- public sector facilitate opportunities by displaying latest models and innovations at strategic locations Putting money in to HH pockets- Government encourage MFI to introduce credit for sanitation products

Strengthening Enabling Environment Regulate the sector through guiding sanitation marketing initiatives- Create coherence and integration between the various initiatives Organize the system to serve the SM: Less bureaucracy, better coordination and targeted capacity building Regulating supply and suppliers: Licensing, construction standards and technical guidelines

Strengthening Supply Chain Reducing costs to enhance sustainability: Affordable products through patents, contracts, grants, market intelligence Supporting growth: Efficient licensing, simplifying certification and accreditation processes, access to finance Diversifying to increase market share: Consumers preferences and purchasing powers Business location close to consumers: Move out from large cities and get closer to rural consumers