Sanitation services
Sanitation services
Business Model Description
Provide affordable sanitation services and wash stations, such as public latrines, to underserved areas.
Expected Impact
Avoid health hazards and improve people's living standards through safe and affordable sanitation services.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Case Studies
Country & Regions
- Ghana: Volta Region
- Ghana: Northern
- Ghana: Upper East
- Ghana: Upper West
Sector Classification
Infrastructure
Development need
SDG 6 - Clean Water and Sanitation and SDG 9 - Industry, Innovation and Infrastructure are reported to be major challenges and only moderately improving. Two out of five SDG 6 indicators and three out of six SDG 9 indicators are marked as major challenges.(II)
Policy priority
The government aims to increase the availability of water and sanitation. By 2021 Ghana wants basic water access to be over 80%, safely managed water access to be 36%, improved liquid waste management to be 30% and solid waste management to be 80%.(III) Roads are also a high priority with the target of 50% of good quality roads, 75,000 km of roads and over 67% of road maintained.(III) The government created the enabling environment for house construction, making the sector more attractive for investors.(IV) The Medium-Term Plan III forecasts the number of houses to reach 3.6 million in 2021.(III)
Investment opportunities
The country’s infrastructure sector recorded significant growth the past 20 years, which supported Ghana’s development. With a booming urban population (3.3% growth in 2019) (I), there are opportunities for the private sector to invest in housing, water and sanitation, roads and waste management.
Key bottlenecks
The main sector challenges include: liquidity problems for some ongoing projects, transmission problems, a lack of conservation, a weak regulatory environment, a lack of patient capital, difficult access to land, a lack of related services and the high cost of materials.
Water Utilities and Services
Pipeline Opportunity
Sanitation services
Provide affordable sanitation services and wash stations, such as public latrines, to underserved areas.
Business Case
Market Size and Environment
One in every three households in Ghana does not have access to improved sanitation.
More than half of Ghanaian households (51.5%) have no access to handwashing facilities equipped with water and soap.(26) Further, one-fifth of Ghanaian households (21.7%) practice open defecation, and around one in three households (34.8%) has no access to improved sanitation.(27)
Indicative Return
20% - 25%
The expected return profile depends on the type of solution provided and size of the projects. A benchmark project improving water and sanitation in Kenya achieved an internal rate of return of 10% - 21%.(29)
Regional projections estimate that providing sanitation services for low income communities may achieve an internal rate of return of 21%.(28)
Investment Timeframe
Medium Term (5–10 years)
Stakeholders estimated positive returns will likely take 5 - 7 years.(31)
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
In Ghana, improved access to sanitation facilities is a priority. Only one in five rural households has water or other cleansing agents available at home. Only 48.5% of Ghanaian household members have access to handwashing facilities equipped with water and soap, with disparities between urban (56.3%) and rural areas (41.8%). Moreover, only 65% of Ghanaian households use improved sanitation.(1)
Because sanitation infrastructure is lacking, an estimated 22% of the population practice open defecation. In Upper East Ghana. this proportion can be as high as 67%.(2)
A 2017/2018 Multiple Indicator Cluster Survey (MICS) that measured faecal contamination revealed only 19% of the population has access to safely managed water services.(3)
Gender & Marginalisation
In Ghana, 73.4% of children are multidimensionally poor as a result of being deprived in at least three children’s wellbeing measures. These measures include water and sanitation, as well as nutrition, health, learning and development, child protection, housing and information.(4)
Expected Development Outcome
Improved sanitary and WASH (water, sanitation and hygiene) conditions in highly populated areas, increased access to affordable sanitary services, reduced pollution of the natural environment, reduced pollution of lakes and rivers due to improper disposal of sewage waste
Reduced cases of poisonings and diarrhoea arising from drinking dirty water, reduced spread of water-transferred diseases like cholera and typhoid fever, improved access to clean water
Increased quality of life and wellbeing in unserved areas
Gender & Marginalisation
Reduced exposure to health hazards especially for the most vulnerable groups who do not normally enjoy access to sanitation services
Primary SDGs addressed
1.4.1 Proportion of population living in households with access to basic services
3.9.2 Mortality rate attributed to unsafe water, unsafe sanitation and lack of hygiene (exposure to unsafe Water, Sanitation and Hygiene for All (WASH) services)
6.2.1 Proportion of population using (a) safely managed sanitation services and (b) a hand-washing facility with soap and water
6.3.1 Proportion of domestic and industrial wastewater flows safely treated
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Indirectly impacted stakeholders
Planet
Corporates
Public sector
Outcome Risks
Risk of groundwater contamination derived from pit latrines (nitrade, chloride, ammonia or microbial contaminants) (7)
Installation of septic systems in areas with shallow or saturated soils may lead to incomplete treatment of organic and bacterial pollutants (8)
Faecal sludge management chains and sewer systems are highly vulnerable to climate impacts. Due to rising temperatures, flooding and other extreme weather events they may pose a threat to human health and the environment.(9)
Impact Classification
What
Invest in providing affordable sanitation services, which is likely to have a positive impact because it increases the overall health level and living standards of citizens.
Risk
Climate resilience of the sanitation system and the related environmental risks are important issues. Moreover, skill shortages related to facilities management may need to be addressed.
Impact Thesis
Avoid health hazards and improve people's living standards through safe and affordable sanitation services.
Enabling Environment
Policy Environment
Medium-Term National Development Policy Framework: An Agenda for Jobs: Creating Prosperity and Equal Opportunity for All (First Step) 2018-2021: This plan aims to build safe and well-planned communities, while protecting the natural environment. A key objective is to improve sanitation and drainage systems.(10)
Coordinated Programme of Economic and Social Development Policies 2017-2024: This program identifies a fair and inclusive society as an objective, with water and sanitation as a key intervention area. It will implement public-private partnerships as an alternative source of funding.(11)
National Environmental Sanitation Policy, Revised 2010 (NESP) : This policy identifies main challenges and constraints of the sector and sets objectives as well as actions and measures for improvement. It emphasizes the need for a cost-effective sanitation model.(12)
National Environmental Sanitation Strategy and Action Plan (NESSAP): This plan outlines systematic interventions designed to improve environmental sanitation infrastructure and services.(13)
Strategic Environmental Sanitation Investment Plan (SESIP): This plan outlines the funding requirements and the framework for addressing funding gaps for projected improvements.(14)
Rural Sanitation Model and Strategy (RSMS): This strategy scales up a community-led total sanitation approach, and hygiene and sanitation marketing in rural communities.(15)
Financial Environment
Other incentives: Under the Coordinated Programme of Economic and Social Development Policies (2017-2024), the government announced the following measures to improve access to sanitation: developing innovative financing mechanisms (35); scaling up investments in the sanitation sector (36); creating space for private sector participation in provision of sanitation services (37); establishing a National Sanitation Fund (38); allocating USD 1 million each year to each of the 275 constituencies to be spent on sanitation projects (39).
Regulatory Environment
Legal regulations concerning sanitation in Ghana are limited. Having established a new ministry responsible for sanitation and water resources, a new, comprehensive regulatory framework is being developed.
Local Government Act (Act 462): This Act assigns metropolitan, municipal and district assemblies the responsibility to provide sanitation services. It obliges landlords to provide toilets for their tenants and regulates penalties for non-compliance.(16)
This Ministry of Sanitation and Water Resources is responsible for policy formulation, harmonization and coordination of WASH (water, sanitation and hygiene) activities, through its Water Directorate and Environmental Health and Sanitation Directorate.(17)
Metropolitan, municipal and district assemblies: These autonomous bodies are responsible for planning, budgeting and implementing sanitation services, based on local priorities and guidelines provided by the National Development Planning Commission and the Ministry of Finance.(18)
National Sanitation Authority (NSA): Given the seriousness attached to sanitation service delivery, there are plans to create a National Sanitation Authority (NSA), which will have a regulatory function of setting national standards for sanitation and managing a National Sanitation Fund.(19)
Marketplace Participants
Private Sector
Sewerage Systems Ghana Ltd, DreamHouse Bio Digesters, Zesta Environmental Solutions Ltd, Polytank Ghana Ltd
Government
Ministry of Sanitation and Water Resources, National Sanitation Authority (NSA), Community Water and Sanitation Agency (CWSA)
Multilaterals
World Bank, European Investment Bank (EIB), African Development Bank (AfDB), European Union (EU), United Nations International Children's Emergency Fund (UNICEF), United Nations Human Settlement Programme (UN Habitat)
Non-Profit
KfW Development Bank, Agence Française de Développement (AFD), Japan Social Development Fund, United States Agency for International Development (USAID), German Corporation for International Cooperation (GIZ), SNV (Netherlands Development Organisation)
Public-Private Partnership
University of Ghana Institute for Environment and Sanitation Studies (IESS)
Target Locations
Ghana: Volta Region
Ghana: Northern
Ghana: Upper East
Ghana: Upper West
References
- (I) World Bank database. https://data.worldbank.org/ (II) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. 2020. The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. (III) Republic of Ghana (2017). Medium-Term National Development Policy Framework: An Agenda for Jobs: Creating Prosperity and Equal Opportunity for All (First Step) 2018-2021. https://s3-us-west-2.amazonaws.com/new-ndpc-static1/CACHES/PUBLICATIONS/2018/08/23/Medium-term+Policy+Framework-Final+June+2018.pdf (IV) Centre for Affordable Finance in Africa (2019). Africa Housing Finance Yearbook 2019 – Ghana Country Profile. http://housingfinanceafrica.org/app/uploads/V14-GHANA-PROFILEKF-2.pdf
- (1), (2), (6) Ghana Statistical Service (2019). Survey Findings Report. Ghana Multiple Indicator Cluster Survey 2017/2018. https://statsghana.gov.gh/gssmain/fileUpload/pressrelease/MICS%20SFR%20final_compressed.pdf
- (3), (4) Republic of Ghana (2019). Ghana Voluntary National Report On The Implementation Of The 2030 Agenda For Sustainable Development. https://sustainabledevelopment.un.org/content/documents/23420Ghanas_VNR_report_Final.pdf
- (5) Unicef.org.( n.d.). Sanitation. https://www.unicef.org/ghana/sanitation
- (7) Graham, J. and Polizzotto, M. (2013). ‘Pit Latrines and Their Impacts on Groundwater Quality: a Systematic Review’, Environmental Health Perspectives. https://ehp.niehs.nih.gov/doi/pdf/10.1289/ehp.1206028
- (8) Hitzhusen, F. (2011). An Economic Analysis of Poorly Sited Septic Systems. Conference Paper. Water Resources Management. https://www.researchgate.net/publication/271435555_An_economic_analysis_of_poorly_sited_septic_systems
- (9) Howard, G., Calow, R. and MacDonald, A. (2016). ‘Climate Change and Water and Sanitation: Likely Impacts and Emerging Trends for Action’, Annual Review of Environment and Resources. https://www.annualreviews.org/doi/full/10.1146/annurev-environ-110615-085856
- (10) Savannah Accelerated Development Authority (2017). Medium-Term National Development Policy Framework (MTDF) 2018-2021. Republic of Ghana. https://www.ndagh.org/application/files/1815/1455/4145/Final_Draft_SADA_MTDP_2018-2021.pdf
- (11) Republic of Ghana (2017). Coordinated Programme Of Economic And Social Development Policies (CPESDP) 2017-2024. https://s3-us-west-2.amazonaws.com/new-ndpc-static1/CACHES/PUBLICATIONS/2018/04/11/Coordinate+Programme-Final+(November+11,+2017)+cover.pdf
- (12) Ministry of Local Government and Rural Development (2010). Environmental Sanitation Policy (Revised). http://www.ecowrex.org/system/files/repository/2010_environmental-sanitation-policy_ministry-of-local-government-and-rural-development.pdf
- (13) Ministry of Local Government and Rural Development (2010). National Environmental Sanitation Strategy And Action Plan NESSAP 2010-2015. https://www.ircwash.org/sites/default/files/MLGRD-2010-National.pdf
- (14) Adank, M. (2013). Sustainability Check Of WASH Activities Ghana Country Report. Aguaconsult Ltd. https://www.aguaconsult.co.uk/wp-content/uploads/SustainabilityCheckReportGhana-FINAL-Jan-2013.pdf
- (15) Aguaconsult Ltd, MAPLE Consult (2011). Rural Sanitation Model And Costed Scaling Up Strategy For Community-Led Total Sanitation (CLTS) & Hygiene In Ghana. https://useatoilet.files.wordpress.com/2015/12/rsms.pdf
- (16) Republic of Ghana. Local Government Act (Act 462) 1993. http://extwprlegs1.fao.org/docs/pdf/gha91927.pdf
- (17) Ministry Of Sanitation And Water Resources (MSWR) (2020). http://mswr.gov.gh/
- (18) Data.gov.gh (2020). Metropolitan, municipal and district assemblies in Ghana. Ghana Open Data Initiative. https://data.gov.gh/dataset/metropolitan-municipal-and-district-assemblies-ghana
- (19) Appiah-Effah, E., Duku, G. and Azangbego, N. (2019). ‘Ghana's Post-Mdgs Sanitation Situation: An Overview’, Journal of Water, Sanitation and Hygiene for Development. https://iwaponline.com/washdev/article/9/3/397/67971/Ghana-s-post-MDGs-sanitation-situation-an-overview
- (20), (21), (22) Republic of Ghana (2017). Coordinated Programme Of Economic And Social Development Policies (CPESDP) 2017-2024. https://s3-us-west-2.amazonaws.com/new-ndpc-static1/CACHES/PUBLICATIONS/2018/04/11/Coordinate+Programme-Final+(November+11,+2017)+cover.pdf
- (23) Republic of Ghana (2019). Ghana Voluntary National Report On The Implementation Of The 2030 Agenda For Sustainable Development. https://sustainabledevelopment.un.org/content/documents/23420Ghanas_VNR_report_Final.pdf
- (24) Oduro-Kwarteng, S., Monney, I. and Braimah, I. (2015). ‘Human Resources Capacity In Ghana's Water, Sanitation And Hygiene Sector: Analysis Of Capacity Gaps And Policy Implications’, Water Policy. https://iwaponline.com/wp/article-abstract/17/3/502/20206/Human-resources-capacity-in-Ghana-s-water?redirectedFrom=fulltext
- (25) Statista (2020). Ghana - Population Growth 2019 https://www.statista.com/statistics/447519/population-growth-in-ghana/#:~:text=In%202019%2C%20Ghana's%20population%20increased,compared%20to%20the%20previous%20year
- (26), (27) Ghana Statistical Service (2019). Survey Findings Report. Ghana Multiple Indicator Cluster Survey 2017/2018. https://statsghana.gov.gh/gssmain/fileUpload/pressrelease/MICS%20SFR%20final_compressed.pdf
- (28) Implementation Completion and Results Report for Nairobi Sanitation OBA Project (P131512) AND Nairobi Sanitation OBA II Project (P162248), World Bank, 2019, http://documents1.worldbank.org/curated/en/538801548820464282/pdf/Implementation-Completion-and-Results-Report-ICR-Document-Nairobi-Sanitation-Project-P131512.pdf
- (29) World Bank (2017). Kenya - Water and Sanitation Development Project Appraisal Document. http://documents1.worldbank.org/curated/en/899451500992254422/pdf/Kenya-Water-PAD-04072017.pdf
- (30) UNDP/PwC Interviews, 2020.
- (31) United Nations International Children’s Emergency Fund. Water, Sanitation and Hygiene. https://www.unicef.org/ghana/water-sanitation-and-hygiene
- (32) World Bank (2020). Ghana To Provide 550,000 People with Improved Water and Sanitation Services. https://www.worldbank.org/en/news/press-release/2020/09/22/ghana-to-provide-550000-people-with-improved-water-and-sanitation-services
- (33) World Bank. People with basic handwashing facilities including soap and water". https://data.worldbank.org/indicator/SH.STA.HYGN.RU.ZS?locations=GH
- (34) Awunyo-Akaba, Y., Awunyo-Akaba, J., Gyapong, M., Senah, K., Konradsen, F. and Rheinländer, T. (2016). ‘Sanitation investments in Ghana: An ethnographic investigation of the role of tenure security, land ownership and livelihoods’, BMC Public Health https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-016-3283-7
- (35), (36), (37), (38), (39) Republic of Ghana (2017). Coordinated Programme Of Economic And Social Development Policies (CPESDP) 2017-2024. https://s3-us-west-2.amazonaws.com/new-ndpc-static1/CACHES/PUBLICATIONS/2018/04/11/Coordinate+Programme-Final+(November+11,+2017)+cover.pdf