Finance for the growth of pit latrine-emptying enterprises in Tanzania

• Nov 1, 2018
• 1 min

MSC and Tremolet Consulting helped a group of 30 pit-emptying enterprises achieve growth in Dar es Salaam, under UKAid’s SHARE program. MSC trained enterprises to help them access working capital to purchase new sanitation equipment. By the end of 2017, these enterprises had accessed more than USD 100,000 in working capital loans and had expanded their services around the city.

MSC and Tremolet Consulting worked with a group of 30 pit-emptying enterprises in Dar es Salaam, under UKAid’s SHARE program. MSC assessed the market, identified business opportunities, and developed management and training manuals for sanitation enterprises. The enterprises trained by MSC accessed working capital from local banks and MFIs, including KCB Tanzania, K-finance, Eclof Tanzania, Tujijenge Tanzania, and local WASH NGOs to purchase new sanitation equipment and thus improve access to decentralized sewerage systems.

By the end of 2017, these enterprises had accessed more than USD 100,000 in working capital loans and had expanded their services to at least three peri-urban areas around Dar es Salaam, including slums in Temeke and Ilala districts. One enterprise realized a 58% growth in annual gross income upon the purchase of new equipment to replace old equipment that WaterAid had initially donated or subsidized.

The success of the pit-emptying enterprises triggered market competition and price reduction from USD 20 to about USD 15.