GEXSI - The Global Exchange for Social Investment

BoP Fund Projects

 

Madagascar: Bush-proof Products for the Poor

 

Providing the most remote rural areas with low-cost technology products they need, they can afford, and that are designed to work in the rugged conditions of the environment they are used in.







Overview

The company BushProof has developed very low-cost solar and drinking water products for use by rural and urban populations that have no access to grid-based electricity or safe drinking water. As spelled out by the BushProof brand, the products are specially designed to withstand the tough environment of a developing country, without compromising affordability and functionality. Examples include family ceramic water filters, low-cost wells, irrigation and hand pumps, micro-solar panels and LED lights. Whenever justified, they are locally made or assembled. Central to BushProof’s vision is the believe that development activities are only truly sustainable if they answer to a demand for which the recipients are willing to pay the full cost.


Business case


The potential BOP market in Madagascar is large: close to 13 million people have no electricity supply or lack access to safe drinking water. BushProof aims to reach 2.5 % of this potential market over the next 4 years After a projected break even in year 2 and an operating margin of 31% in year 4, the company will eventually converge to a business with an operating margin of 42 % (57 % for NGO related business and 23 % for BoP products). With current sales projections BushProof will achieve an Internal Rate of Return of 31 % based on a 10 years timeframe.







Project Impact


Please note: This preliminary indexation of the social, ecological and financial benefits expected is based on the internal GEXSI project assessment scorecard. Download PDF for more information...(980 kb)

The poor profit in multiple ways from BushProof products:

  • The products protect their health from water borne disease and indoor smoke pollution, and increase convenience and safety from fire risk.
  • Much more cost-efficient in use, the products substitute expensive fossil fuels and batteries, thereby creating substantial financial savings.
  • Ecological benefits include CO2 savings of 401 tons through saving 153k liters of kerosene and 13 million batteries.

After 10 years, the social and environmental benefits will grow to multiples of this amount.




Project Status



Level 1: Idea and concept exist, funding will finance pilot.
Level 2: Pilot exists, investment will scale up operations
Level 3: Project concept is proven, investment will scale up operations to market level.


Investment Needs

  • EUR 200k investment needed as a loans/equity mix.
  • Capital will be used to stock up inventory, purchase equipment and serve as working capital.
  • Break-even projected in year 2, operating margin of 31 % (year 4) and 42 % (year 6 and beyond).


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  More info: Download Project Summary as PDF.