WECONNEX Development Investment and Sustainable Change in Ethiopia Zürich, 27. November 2015 WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
HALF OF THE HUMANITY… DOES NOT HAVE ACCESS TO BASIC SERVICES! WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
WHY ARE THESE PROBLEMS NOT SOLVED? JUST A FEW THOUGHTS... • What incentives do Governments have to provide longterm and sustainable solutions for decentralized access to infrastructure? • How can a non-profit business model be scaled a multiplied? • Why do large companies not show more interest in the BoP market? • Do SME suppliers tend to over- engineer? WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
SITUATION IN ETHIOPIA SOURCE: WORLDBANK, WIKIPEDIA, ENERGYPEDIA - With 100 million one of the largest landlocked countries in the world (est. 2015) - More than 80% of the population lives in rural areas - Only 65% of them consume the minimum standard of food per day - Due to small landholdings and usage of livestock manure for fuel, efficiency in farming is very low - In urban areas, the most pressing issue is access to sanitation , only 26.8% in 2014 - NGO activities are uncoordinated and isolated - More than half of the population does not have access to clean water 99% of households and 70 – 94% of businesses use biomass as energy source, only 12% have electricity - - GNI per capita is estimated at 550 USD in 2014 - GDP growth in 2014 was 9.9% Net official development assistance and official aid received in 2013: USD 3 ‘ 826 ‘ 250 ‘ 000 - WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
THE SOLUTION WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
TRIPLE BOTTOM LINE IMPACT Environmental Aspects • Environmentally Friendly : The water treatment system powered by renewable energy (solar or hydro power). Energy also used to recharge electronic devices and provide electricity to the rented out rooms. • Access to clean energy : instead of installing fossil fuel based energy systems, we can leapfrog with renewable technologies. Further, the common practice of burning any kind of biomass is minimized. • A role model : The NEXUS hubs shall be a role model how sustainable technologies can be used efficiently. The infrastructure shall be used actively and passively for education purposes in sustainability and conservation WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
TRIPLE BOTTOM LINE IMPACT Economical Aspects • Financial Sustainability : A diversified cost-recovery mechanism due to various revenue generation streams helps stabilize and increase business cash flows. Investment and operational costs are recovered and an ethically acceptable profit is generated. • Cross-Subsidization : Non-drinking water related revenues offer the possibility to subsidize the water price and provide access to safe drinking water to consumers that would not afford the regular price. • Local Entrepreneurship : A special emphasis is put on supporting local entrepreneurial initiatives that foster inclusive growth and community development. WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
TRIPLE BOTTOM LINE IMPACT Social & Health Aspects Local Jobs and Capacity Building : Each Nexus Center creates at least 2 direct full- • time jobs. The local operators and their supporters are trained on technical aspects, accounting, safe drinking water and hygiene practices, sales and marketing. • Health: The health situation should be improved with the access to safe drinking water, sanitation and clean energy. Inclusive : The community is involved in every stage of the project, during planning, • development and operations. • Ownership : It is expected that the franchisees either contribute 10% in cash or in-kind (building, tank structure etc.) of the total investment cost for the local civil structure. • Education : Communities and customers are sensitized on adequate sanitation and hygiene practices as well as the responsible use of water sources. Internet cafés that will be run by entrepreneurs renting space within the center provide a good opportunity for students and the local population to acquire useful information. • Community Harmonization and Integration : The Nexus Center creates an environment for the community members to gather at one place, where they can discuss social and community development issues. WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
WHY WECONNEX? Proven technical track record of 850 solar powered drinking water units in 42 countries (www.trunzwatersystems.com) Large network of established and reliable partners for technology, financing, business modeling, project management etc. E.g. Nigist Goytom, Traveller Dedicated to develop sustainable projects Experienced team in project management in BoP markets Provides personalized services and technical advice Direct, transparent and fair We love what we do and we know how to do it Enabling sustainable business WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
COMPETITION & RISKS Competition • NGO and Government activities which provide access to basic infrastructure for free or low (subsidized) costs • Free ressources (e.g. untreated water, open defecation etc.) • Other international or national organisations offering access to basic services via a business oriented approach (e.g. Swiss Fresh Water, Sarvajal, etc.) -> Very Welcome! Risks • Acceptance of endcustomers • Long project lead times • Complexity of the concept WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
PARTNER NETWORK PRIVATE SECTOR EXPERTS NGOs / Civil Society Financing Support Consulting (technical, social, Stakeholder Coordination business) Business Development Local Knowledge Networking Management Skills Monitoring & Evaluation General Support WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
TECHNICAL PARTNERS • Water Treatment Sytems: Trunz Water Systems, Katadyn and Swiss Fresh Water • Energy supplies: Hydropower (vorteco, IDE Energy, RCE Engineering), Waste-to-Energy (Terragon), Solar (Phocos and others), Windpower (Bergey, Northern Power) • Sanitation and Waste Water Treatment : tbc • Communication and Monitoring : isaTech, Swisscom WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
TEAM AND ADVISORS Team WECONNEX • Markus Stolz, Research and Development • Anthony Musco, Project Management • Lars Willi, Founder & CEO Project Partners • Nigist Gebrehiwot Goytom, Traveller Ethiopia & NEXUS Ethiopia • Andrew Cheah, ISZA Trade Malaysia & NEXUS Laos & Co-Founder • Awi Fang, PT Enviromate Indonesia & NEXUS Indonesia & Co-Founder Advisors • Christoph Sievers, Consulting Group Zurich Switzerland • Nikolaus Hutter, Angello Austria • Susanne Grossmann, SECO Startup-Fund (tbc) • Lukas Schmid, FHSG (tbc) WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
ORGANISATION STRUCTURE Business� Technology� NGO ‘ s Development Suppliers WECONNEX� AG Switzerland CAPEX� OPEX� Investor Investor Traveller NEXUS� Ethiopia NC1 NC2 NX WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
NEXT STEPS Planned Schedule Securing Financing for Feasibility Study of approx. 25 ‘ 000 CHF ASAP Start with Feasibility Study January 2016 Finalization of Business Plan April 2016 Fundraising for Pilot Project ( ≥10 Installations) May 2016 ongoing 4 th Quarter 2016 Start of Operations Fundraising for Expansion Project (≥30 Installations) 2 nd Quarter 2017 WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
IMPRESSIONS NEPAL WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
TOO BIG TO FAIL... WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
Thank you! WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 26 77 | info@weconnex.org | www.weconnex.org WECONNEX AG | Bohl 2 | CH-9000 St.Gallen | +41 71 923 88 88 | info@weconnex.org | www.weconnex.org
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