Question
how would you reply to this post? Is the SWN business model sustainable? Do you see fatal flaws in the operational model? If so, what
how would you reply to this post?
Is the SWN business model sustainable? Do you see fatal flaws in the operational model? If so, what adjustments would you make to the model? If not, which remaining challenge should SWN focus on first?
I believe that the Safe Water Network (SWN) business model can besustainable. SWN is a not-for-profit that funds the development of small water enterprises in Ghana and India. "Over 80 per cent of Ghanaians have access to an improved water source piped to their homes or within a 30-minute round trip, and this figure has been steadily improving in recent years. However, this means 20 per cent of the population, over 5 million people, are reliant on unsafe or inconvenient sources. Including 1.7 million people dependent on surface water as their main drinking source. The vast majority of those Ghanaians without access to safe water sources are in small towns and rural areas" (White, 2020). The network works by having water stations available for all people who need access. These stations take water from a nearby source, purify it, then distribute it via household connections or water ATMs. The stations are run by operators from the communities they serve. The operators receive training and ongoing technical support from SWN. Some flaws of the operation may include the fact that "In Ghana, SWN has a target to generate 0.005 Cedi in revenue per liter sold. This means a family of four can cover their water needs for 2.8 Cedi (~$0.5) per week, based on an average consumption of 20 liters per person, per day" (White, 2020). In the long run affordability of water could pose an issue. SWN is trying to make adjustments by adding digitalization was the installation of prepaid meters for household connections at exiting stations. This allows for credits to be added to the account. The account balance is then drawn down automatically based on consumption measured by the meter, thereby removing the need to manually verify meter readings and issue bills.
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