[PPT] - WECONNEX Development Investment and Sustainable Change in Ethiopia PowerPoint Presentation

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Development Investment and Sustainable Change in Ethiopia Zürich, 27. November 2015

WECONNEX

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HALF OF THE HUMANITY…

DOES NOT HAVE ACCESS TO BASIC SERVICES!

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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?

WHY ARE THESE PROBLEMS NOT SOLVED?

JUST A FEW THOUGHTS...

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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

SITUATION IN ETHIOPIA

SOURCE: WORLDBANK, WIKIPEDIA, ENERGYPEDIA

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THE SOLUTION

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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

ut 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

TRIPLE BOTTOM LINE IMPACT

Environmental Aspects

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Financial Sustainability: A diversified cost-recovery

mechanism due to various revenue generation streams helps stabilize and increase business cash flows. Investment and

perational

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
n supporting local entrepreneurial initiatives that

foster inclusive growth and community development.

TRIPLE BOTTOM LINE IMPACT

Economical Aspects

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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

pportunity 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.

TRIPLE BOTTOM LINE IMPACT

Social & Health Aspects

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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

WHY WECONNEX?

Enabling sustainable business

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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
ffering access to basic services via a business
riented approach (e.g. Swiss Fresh Water,

Sarvajal, etc.)

> Very Welcome!

Risks

Acceptance of endcustomers
Long project lead times
Complexity of the concept

COMPETITION & RISKS

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PARTNER NETWORK

PRIVATE SECTOR EXPERTS NGOs / Civil Society

Financing Support Business Development Management Skills Consulting (technical, social, business) Networking General Support Stakeholder Coordination Local Knowledge Monitoring & Evaluation

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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

TECHNICAL PARTNERS

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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)

TEAM AND ADVISORS

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ORGANISATION STRUCTURE

Technology Suppliers NGO‘s

WECONNEX AG Switzerland Traveller NEXUS Ethiopia

NC1 NC2 NX

CAPEX Investor OPEX Investor Business Development

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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 Start of Operations 4th Quarter 2016 Fundraising for Expansion Project (≥30 Installations) 2nd Quarter 2017

NEXT STEPS

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IMPRESSIONS NEPAL

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TOO BIG TO FAIL...

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Thank you!

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WECONNEX is providing consulting services to develop NEXUS Projects upfront. These services

are e.g. the preparation and execution of feasibility studies and the design of the business plans. For these consulting services, WECONNEX is asking a fixed price per NEXUS Center and/or an agreed fee for expenses and time (e.g. feasibility studies etc.).

REVENUE MODEL – „ARCHITECT“

Commission

WECONNEX is giving licenses of the NEXUS Center Concept to the local project partners. This

license includes access to all the know-how, templates, network of WECONNEX and the support with human resources local and remotely. In return, the Licensee pays a certain percentage of the gross turnovers and net profits generated to WECONNEX.

Licensing Consulting

For some products which are deployed or successfully mediated by WECONNEX, a commission

payment from the supplier can be agreed (e.g. Trunz Water Systems)