Profitability of water points through micro financing
Date
2010-05
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Abstract
Developing countries generally have a major problem in making potable and
clean water accessible to their people in both the urban and rural
communities. There is the need for individuals, groups, institutions and the
government to find ways to curb this situation which is affecting rural and
urban communities in Ghana.
Micro financing is the 'provision of small size loan and other financial services
to low income household.' (Montgomery & Weiss, 2006,). It is important to
note that the provision of micro credit through water points will help increase
the confidence level of the poor by having small businesses of their own. It
will also reduce poverty by bringing a significant improvement of their
material lives.
This study will attempt to show how micro finance can help individuals,
groups and organizations make water accessible to the majority of the urban
population. This study also examines the profitability of water points to the
urban population through micro financing. To be able address these
problems, the project will address the financial and management of water
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points in other to increase profits and also enhance sustainability of water
points business.
The data analysis reveals that water points through micro financing are very
profitable and sustainable to individuals, groups and financial institutions who
will want to go into water business. The research also reveals that water can
be more profitable when water is sold between 10 and 20 pessewas per
standard unit. It also revealed that water points can be sustainable when
effective and efficient management controls are put in place.
The importance of privatization in the water sector is that it will help
everyone have access to potable water. It will also reduce water borne
diseases such as river blindness and guinea worm, since water will be
treated. It will also help meet the seventh Millennium Development Goal
(MDG) by 2015. This in the long run will ensure more than half the
population in the urban centers has access to safe drinking water.
Description
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2010
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Keywords
Ghana, water sector, micro-finance, businesses, privatisation