REPORT__Evaluating_the_potential_of_microfinance_for_sanitation_in_Tanzania_May_2013

alternative approach to deploy the gulper pumps via the setting up of a revolving fund.
WaterAid Tanzania, being an NGO, could not directly fund the CBOs but placed TZS 10
million (USD 7,407) with Harness Africa Ltd ( a local manufacturing company) to adapt
and develop the gulper pump technology, supply tricycles for transporting the sludge to
stabilisation ponds or to the treatment plant. The equipment (including Gulper pump,
Tricycle, 400 litres metal tank, 40 litres plastic containers) costs a total of TZS 5 million
(approximately USD 3,700). As a result, the amount initially allocated by WaterAid
Tanzania could only finance two sets of the equipment. Two CBOs, UMAWA and
NUMEGRO were identified, assessed and facilitated to acquire the pumps and tricycle.
These two CBOs now provide sanitations services in Temeke district within Dar es Salaam
city. It is expected that the repayments from the CBOs will be used by Harness Africa to
produce subsequent Gulper pumps hence the concept of the “revolving fund”.
To respond to the need of improving the management of the CBOs as well as to manage
the repayments of the capital costs of the pump, WaterAid Tanzania contracted a local
consultancy firm, HACH Consult Ltd, to identify potential CBOs and train them on
entrepreneurial skills and business management. A second private firm, EDAT involved in
enterprise development, was engaged to conduct credit appraisals, collect loan
repayments and monitor loan performance. EDAT will later pass on the accumulated funds
to Harness Africa to develop more gulper pumps.
HACH had originally assessed 3 CBOs and identified 2 as viable (the other one was weak,
with no appropriate institutional systems, and limited understanding by the members). The
viable groups were:
NUMAGRO, which stands for Newanga Usafishigi Mazingira, loosely translated as
environmental cleaning group. The CBO is registered as a company with a director;
UMAWA, loosely translated as “Life of Environment and People”.
These two CBOs received the toilet emptying equipment and at the time of this research
were providing toilet emptying services in the slum areas in Dar es Salaam and repaying
their loans. The CBOs were also involved in solid waste management in the communities,
which means that they have diversified sources of income.
Demand for toilet emptying services was estimated to be very high in the areas where
these private service providers operate. Both the consultants used by WaterAid (HACH
and EDAT) reported that the two private service operators received an average of 8 – 12
orders per month. Both CBOs provide services to largely low income households. These
comprise tenants of low income unplanned settlements. Sometimes, they receive toilet
emptying orders from the landlords – a segment that would be considered to be slightly
better off than the majority of the residents of Temeke. The tenants organise themselves,
contribute money and directly seek toilet emptying services from the CBOs. This is very
common in situations where the landlord does not live in the same premises. The second
targets are households living in self-constructed houses/homes. This category of the
market is those who own homes. They may have constructed pit latrines or have septic
tanks. Some of these also own a few of the rented unplanned settlements mentioned
above.
Interviews with UMAWA representative indicated that the CBO only operated in one of the
12 wards in Temeke municipality, the Kigamboni ward, which has an estimated population
of about 2,000 households. This means that potential demand is likely to be very high
compared to the capacity of these CBOs to meet such demand. UMAWA is not able to
cover the rest of the district due to lack of capacity – “we only have one pump and
tricycle”, noted the chairman. Occasionally, the Municipality public health officers refer
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