Meet the Entrepreneurs
Ecofiltro November 2013
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CONTACT INFORMATION
ecofiltro
A sustainable and affordable clean water solution for people at the Base of the Pyramid
Guatemala City, Guatemala +13 79558555
pwilson@ecofiltro.com
www.ecofiltro.com
Philip Wilson, Founder, Guatemala
CHALLENGE Currently, one million families live without access to potable water in Guatemala. In rural areas, people usually have to boil water to make it drinkable, but it is not a satisfactory solution and intestinal infection rates remain high. This practice also contributes significantly to deforestation and carbon emissions as people usually use wood for the process. In urban areas, the use of bottled water has been widely adopted, and while it means an increase in household expenses, it also implies a number of impacts on the environment linked to waste and transportation.
IDEA Ecofiltro’s main idea is to produce a filter from locally sourced materials that can clean contaminated water. The solution was founded by Fernando Mazariegos in Guatemala in the early 1980s. It is a filter composed of clay, sawdust, and colloidal silver which allows water filtration while at the same time trapping bacteria and other contaminants in the micro channels inside the walls of the filter. While removing all turbidity and smell from the water and maintaining a cool temperature, the clay filter solution makes it widely culturally accepted: families that begin to use it remain faithful to the product as the taste is fresher and reminds them of the clay jugs that have been used for centuries to store water. Moreover, the innovation can contribute to drastically reducing waste, as Ecofiltro reduces the consumption of bottled water.
BUSINESS MODEL Ecofiltro is a social business whose mission is to provide clean water in an affordable and sustainable manner to the one million families in Guatemala that currently live without access to potable water. The company measures its success by being profitable, achieving a high social impact in rural communities, and reducing the environmental cost of providing clean water. Today, Ecofiltro is the lowest-cost water purifier in the market for developing countries. It sources all of its materials and labor locally and creates no waste during the production process. The income model is based on low monthly payment plans offered to families (each one pays between one and two dollars per month for the filter) which covers production costs. Ecofiltro has become the water utility for the population living at the Base of the Pyramid while achieving economic sustainability.
“ECOFILTRO IS THE LOWEST-COST WATER PURIFIER IN THE MARKET FOR DEVELOPING COUNTRIES.”
“THE MAIN IDEA WAS TO PRODUCE A FILTER FROM LOCALLY SOURCED MATERIALS THAT COULD CLEAN CONTAMINATED WATER.”
www.infodev.org
twitter: @infoDev
ENTREPRENEUR’S INSIGHTS THE SOCIAL BUSINESS MODEL that focuses on a social mission as its main objective, yet runs itself efficiently like a business, is the most effective model for solving a social challenge. A KEY SUCCESS FACTOR FOR REACHING THE BOTTOM OF THE PYRAMID (BoP) market is to design products that are culturally acceptable. ECOFILTRO HAS PROVEN THAT IT IS POSSIBLE TO REACH THE BoP with models that are sustainable, economic, and environmentally wise. Turning the poor from beneficiaries that are given products for free into clients that recognize the value of clean water is fundamental when working with the BoP.
NEXT STEPS
WORKING WITH infoDev
To increase the user base and the placement of Ecofilters in Guatemala until reaching one million families
PROGRAM: Top20 Co-incubation pilot
To replicate the model in other countries. With the right social entrepreneur in each country, the water problems of the past will be diminished significantly with the sustainable payment program and culturally accepted water filter
“THE METHOD OF DELIVERY IS KEY, AND THE POOR MUST BE SEEN AS CLIENTS RATHER THAN BENEFICIARIES OF HAND OUT PROGRAMS.”
SUPPORT PROVIDED: USD10,000 cash award, technical assistance in accessing markets, and participation in infoDev’s 4th Global Forum MAIN BENEFITS FROM ENTREPRENEUR’S VIEW: • The Global Forum provided a valuable opportunity to share experiences and challenges with other social entrepreneurs from around the world. • Ecofiltro realized that it is a part of a global community that is starting to be concerned about social challenges such as potable water.
KEY OUTCOMES VALUE FOR USERS Rural families save USD10-USD12 monthly on firewood as they no longer have to boil water. Families in urban areas are no longer buying bottled water and they are saving USD100-USD150 per year. A dramatic lowering of intestinal infection has been observed in rural areas, primarily within children under the age of five. Moreover, significant money is saved on doctors’ visits and medication. Pollution decreases in big cities, due to the reduction of plastic waste and transportation for delivering bottled water. Ecofiltro contributes to reducing deforestation in rural areas, as the average family burns 10 kilograms less of firewood per day.
BUSINESS FACTS REVENUE GENERATED
USD1,000,000 (2012)
8-10% net profit (2013)
JOBS CREATED
32
USERS REACHED
30,000 families (2012) 21,000 families (rural areas) 9,000 families (urban areas)
ECOFILTERS PLACED
103,000 35,000
in rural and urban areas in Guatemala (since 2008) in homes nationwide (2013)
12 full-time, 20 part-time
AWARDS
Supported by:
www.infodev.org
twitter: @infoDev
Ecofiltro is one of the first water filter organizations in the world that has been accepted into a carbon credit program with the Gold Standard.