H4O for Financial Sustainability
Although many developing countries are plenty of (human and natural) resources and a consistent economic potential, the world we live in has created a number of controversial dynamics that exacerbate inequalities.Around 75% of inhabitants is estimated to live below the poverty line of 1.90$ per day and the low purchasing power has opened the market mainly to low quality products (usually) from Asia. Madagascar’s economy is barely self-sufficient and it mainly relies on exporting raw material, tourism, foreigner investments and international aid. To date, there are almost no local enterprises enforcing local economy by creating jobs and processing local resources.
Within this worrying picture H4O makes its contribution by enabling local communities to take advantage and add value to their own natural and human resources. In order to do that, H4O has framed local enterprises able to turn the potential of raw materials into high quality products. The ability of processing raw materials ensures H4O projects the minimisation of both risks and costs and it is the key both to ensure affordability of H4O products for the entire population and to boost local economic development.In fact, the final products H4O put on the market are affordable to anyone but still profitable. What makes the enterprises very impactful is the profit, which is entirely reinvested (100%) in the other H4O WASH projects. This approach allows H4O to kick start a long-term financial sustainability in which the money is invested rather than spent. The aim is to maximise the overall Value for Money (VfM) by increasing the impact of each Euro spent. In addition to that, H4O enterprises ensure good work conditions to their employees, a safe and healthy workplace and also good wages, aligned to middle-income rather than low-income countries.
H4O strongly believes that financial and economic sustainability are crucial for a long-term development that enables H4O to scale the programmes and to reach more and more beneficiaries.