How is your initiative financed (or how do you expect your initiative will be financed)?
Being a new initiative, little revenue is expected to be generated during the first two years. However, the project will collect gum arabic from the communities in exchange for water filters, water chemicals and drinking filters. The gum will them be sold to generate revenue for the project.
It is expected that the revenue from sale of gum arabic will represent only 12% of total operating costs by the end of the second year. This revenue is expected to grow to about 60% by end of 4th year. Over the last four month, we have not earned any revenues from sale of gum. The project is still in its initial stages.
Provide information on your finances and organization:
The total annual budget for my organisation is $252K. This budget is for established programmes that we undertake in environ,mnet, education, microfinance and health.
For the last four months, my organisation has only allocated $9,000 towards this innovation. However, the total budget required for this innovation is $210,000 over th next two years. This means that at the moment we have a shortfall of more than $200,000 in order to make this innovation work.
Over the last two years, our annual buget was $78,000 and $154,000.
Most of the organisations budget has been financed by grants from the World Bank DevelopmentMarketplace and revenue generated from recycled used oil. We have also earned revenue from interests on micr loans that we give to our clients.
However, for this innovation, we are not earning any revenue at the moment.
What is the potential demand for your innovation?
Karkomuge alone has a total of 5,200 households. Each household has approximately 8 people. All these people are exposed to guinea worm infection and are potential users of the technology.
Southern Sudan in general is a guinea worm endemic region. If this pilot project succeeds, then there will be scope to replicate it in other areas of South Sudan. However, replication will means making modifications to project approach to suit different regions and locations.
What are the main barriers to financial sustainability?
1. Many residents of Karkomuge are not exposed to monetary exchange. This means that at the community level there is limited scope to develop a viabrant exchange economy that will create demand for water, health and sanitation services.
2. This innovation is dependent on a natural resource (gum arabic). This resource is a seasonal product and this may limit the expansion and therfore sustainability of the innovation.