Incentivising the private sector to target low-income customers

Themes: Faecal sludge management Finance Market development Sanitation
Countries: Bangladesh

Sanitation businesses can improve services for all urban residents – including the poorest – but this requires carefully designed pricing strategies and measures to reduce risk.

This publication outlines WSUP’s approach to incentivising the private sector to target low-income customers, and how this is being applied to achieve commercial viability, affordability and equity of FSM service provision in Bangladesh.

The report shares four lessons from our work supporting SWEEP, a faecal waste collection service operating in Bangladesh:

1. Reduce the risk of entry

2. Include low-income customer targeting as a contractual requirement

3. Promote preferential pricing to improve the offering to low-income customers

4. Provide smart support that catalyses citywide change