On The Ground

India 151

World Water Day: Notes from the field

I spent the month of February in India working with companies in Acumen’s water portfolio and conducting due diligence on prospective new water investments. During the month I had a chance to visit a number of community water kiosks – small-scale treatment facilities where customers purchase drinking water in refillable containers (a la WaterHealth International) – in Eastern and South India. I had the opportunity to speak with each of the kiosk operators and to interview dozens of customers and non-customers. In honor of World Water Day, I thought I would share some insights and reflections from these visits.

  • Convenience matters. Convenience seemed to be one of the most important factors driving uptake. Customers within a village seemed unwilling to walk long distances to get water from a kiosk (the median distance customers travel to one company’s kiosks is 40-50 meters) since there are often free, closer options available. During my visits I passed dozens of government-installed hand pumps, and in some regions customers have shallow wells in their backyards. These solutions, while free and convenient, are typically microbiologically contaminated. Recognizing that customers value convenience, many companies have begun to introduce home delivery in order to increase village penetration. One company reports that home delivery extends the range of the customer base by 1-2km and currently accounts for ~30% of their revenue. One woman I met lives only 50m from the kiosk yet opts for home delivery because she doesn’t want to take time away from working to pick up the water; she prefers to pay the additional Rs. 2 ($0.04) for home delivery.
  • Marketing health impacts is not easy. Marketing and education campaigns around the health effects of drinking unsafe water are notoriously difficult to execute. Even if you do manage to convince people that there is a link between water and health, challenges still exist. When I asked one man why he stopped buying treated water, he told me that the company claimed the water was healthy but he still got a cold after starting to drink it. He concluded that it must not be so healthy after all. My takeaway is that water companies must be careful how they market the health impact of their water. If using health messaging, companies must try to clarify that water is linked primarily to diarrheal disease (not other ailments/illnesses such as colds) and that it is only one part of the puzzle (improving hygiene and sanitation being the other key drivers of reducing diarrheal disease). It is not easy to convey these nuances in mass marketing campaigns; fortunately, there are other aspects of the kiosk water (convenience, taste, reliability) that companies can highlight in addition to potential health improvements.
  • Visual appearance matters. In some villages I visited, customers complained about suspended particles or cloudiness in their kiosk water. Despite the fact that the water is safe for drinking, people clearly prefer to drink water that is clear – particularly if they are paying for it. Who can blame them? Why pay for water that looks the same as water you can get from traditional sources? Making the water clear and visually appealing may seem like a no-brainer, but it is surprising how many safe water systems don’t take this into account.
  • Households have many competing priorities. In one village in Eastern India, I asked a kiosk operator some questions about his community’s access to various services. Out of 300 families in the village, he estimated that: 50 have landline phones, 60 have a toilet, 150 have cable TV, and 300 have at least 1 mobile phone. These numbers tell us something about what people value. After probing some more, I learned that cable TV costs a family Rs. 80 / month ($1.80), just slightly more than drinking water from the kiosk – Rs. 60 / month ($1.33). It can be difficult to compete for these Rupees… what is the value of water compared with a month of entertainment?

I realize that these observations may not hold true in other countries or even other regions within India, but they at least give some perspective on the issues that community water companies face in trying to sell their product. I look forward to hearing others’ perspectives on these issues.

Happy World Water Day.

Marc Manara is the Water Portfolio Manager at Acumen Fund.

Comments

Four Emerging Leaders Building the Future of Pakistan

With 60% of Pakistan’s population living under less than a dollar a day, the external narrative of Pakistan is characterised by what the country lacks; a lack of security, a lack of women’s rights, a lack of access to education, and the list goes on. What this narrative ignores are the individuals who work tirelessly to plug those gaps. From human rights to education to food security, Acumen Pakistan Fellows are affecting change through organizations committed to tackling poverty. Their work is truly inspiring, promising a hopeful future for Pakistan. Here are four fellows that are building this future for Pakistan and come together periodically to share learning experiences and grow as leaders. Through five seminars, the fellows have strengthened skills of adaptability, communication, empathy and problem solving through listening. If you are committed to creating change in your community, apply now to be an Acumen Pakistan Fellow. The deadline is 29 September. [Read More]

Acumen Partners with AlphaSights to Better Access Global Expertise

In our work investing in social enterprises that deliver critical goods to the poor, there is a substantial amount of work to evaluate each investment opportunity. A critical part of the diligence process, particularly when it comes to emerging markets, is speaking with industry experts who can provide reliable information about sector trends, market dynamics and public policy – all of which affect our evaluation of potential investment opportunities. [Read More]

DE-BUNKING THE BURDEN MYTH: IMPACT DATA GOES LEAN

Our manifesto begins, “it starts by standing with the poor.” Yet for good reasons, the sector has found it challenging to measure which customers are actually being served through social impact investments – getting accurate data on incomes is notoriously difficult and the logistical challenge and cost of conducting surveys in person prohibitive. [Read More]

Questions for Aspiring Leaders

Bavidra Mohan, Acumen’s India Fellows Manager, attended this years Aspen IDEAS festival as a Scholar. The Scholarship program was established to invite guests from around the world to bring a diverse set of experiences, voices and perspectives to the rich conversations that take place at the IDEAS festival each year. [Read More]

Give Impact Investing Time and Space to Develop

Impact investing has captured the world’s imagination. Just six years after the Rockefeller Foundation coined the term, the sector is booming. An estimated 250 funds are actively raising capital in a market that the Global Impact Investing Network estimates at $25 billion. Giving Pledge members described impact investing as the “hottest topic” at their May 2012 meeting, and Prime Minister David Cameron extolled the potential of the sector at the most recent G8 summit.  Sir Ronald Cohen and HBS Professor William A. Sahlman describe impact investing as the new venture capital, implying that it will, in the next 5 to 10 years, make its way into mainstream financial portfolios, unlocking billions or trillions of dollars in new capital. [Read More]

10 Books We’re Reading This Summer

What are you reading? It is a common question here at Acumen, an organization full of avid readers constantly trading favorite book titles that discuss leadership, impact, development and branding. Here are 10 stellar books we’re reading this summer. These books and others provide a framework of thinking, a spark of new ideas, a platform for debate. So, what are you reading? [Read More]

How Acumen Brought Back my Fire

Eda is an East Africa Regional Fellow from Nairobi, Kenya and is the Founder and Director of Halisi Trust, an organization that seeks to challenge the vices that plague society and encourage transformational development in Kenya’s youth. When Eda applied for the East Africa Fellows Program, she felt disillusioned and stuck. Below, Eda discusses how Acumen’s Regional Fellowship Program brought back her fire. Now, Eda has engaged nearly 6,000 people through outreach events and the Mkenya Halisi movement continues to grow. Acumen is currently accepting applications for the next class of East Africa Fellows. APPLY TODAY! [Read More]

Imagining the world as it could be

Christine Gitau is an East Africa Fellow and an enterprise coach at Craft Afrika, which provides business support services to craft entrepreneurs, enabling them build viable and thriving businesses in Kenya. At Acumen we often use the term “Moral Imagination” when talking about leadership. Christine wrote a reflection on how this concept has shifted her thinking. We could not be more proud of what she is building! [Read More]

How two Acumen Fellows are disrupting the education model in India

Whether its running youth soccer programs, providing vocational training services, or transforming the education system in India, Acumen India Fellows are driving real change in their communities.  Abbas Dadla and Abhilasha Sinha are India Fellows who are addressing the teacher shortage in India through the use of technology and peer collaboration. Find out what they are building below.  If you have grit, resilience and a commitment to creating change in your community in India, East Africa or Pakistan, we encourage you to apply for the Regional Fellowship Program! [Read More]