Tuesday, March 11, 2008

Excellent Implementation: DMT Toilets

Over the last couple months I have been an intern at Ashoka promoting their Citizen Base Initiative. One of my favorite stories I've had to work with has been DMT Toilets in Nigeria.

A couple characteristics that jump out to me in terms of microfranchising:

  1. Issac Durojaiye's franchisees are young street boys. This is in line with John Hatch's vision that microfranchising will be for the children of microcredit borrowers, that second generation.
  2. Sourcing products locally. One of the great successes of DMT Toilets in my mind has been their determination to manufacture their products locally, having a ripple effect of economic stimulation in the community.
  3. Blending of for-profit business and partnerships with private and public sector entities. The write-up on citizenbase.org tells a bit more about their partnerships but I think this is a great example of "creative capitalism" that Bill Gates described at Davos. I love the fact that the government has recognized the superiority of DMT's deliver system so instead of going out and building their own toilets for sanitation issues they simply purchased 2000 toilets and gave them to DMT Toilets to operate. As long as the government contribution did not come with certain political strings attached I'm all for such partnerships.
  4. The power of individual 'ownership' in a franchise setting. Giving the boys complete stewardship of the operation created a higher quality overall business operation.
Could this model be replicated in other areas? Your area of operation?

No comments: