The project Trevor Field and the Playpumps.

 

( this text is taken from a case study written by the ICMR, the Centre for Management Research Centre.)

Women and girls, on whom the burden of obtaining water for the family falls, have to trek long distances and spend hours collecting water. Where such traditional sources of water are not available, they have to rely on bore-wells, toiling hard over hand pumps. While this is back-breaking work, alternatives such as use of diesel, petrol or electric pumps are too costly to install and maintain.

They have also to contend with the fact that hand pumps break down often and remain un-repaired for a period of time. ―By some estimates, 35 percent of Sub-Saharan Africa‘s improved water sources are out of service at any given time, mainly due to hand pump breakdowns. When broken pumps aren‘t repaired, communities are forced to return to unsafe water sources, wrote Geoff Hopkins, an operations analyst for the International Finance Corporation (IFC) in Johannesburg, South Africa.

Since this responsibility is linked to gender, women and girls spend a disproportionate part of their time hauling water – time that could be better spent with family or on economic activities, or in school. According to experts, in many regions of sub-Saharan Africa, women and girls have to trudge an average of 8 kilometers to the nearest water source every day and haul back containers of water weighing about 40 pounds. The absence of improved water supply has not only led to gender inequality but also affected the growth potential of the region, they said.

 

The Playpump

 

The PlayPump was a child‘s roundabout (merry-go-round) attached to a water pump, a storage tank, and a tap. As children played on the merry-go-round, the system pumped water to the storage tank and communities living nearby could use this clean water. The four surfaces of the storage tanks also doubled up as billboards for commercial and public education/social messages. Revenue earned from the advertising helped maintain the water systems for up to a decade. ―It‘s a win-win situation….Children enjoy riding on it, particularly as these are places with no toys. Villagers no longer have to walk hours to the nearest well… The beauty of the roundabout pumps is that they are really simple, low-tech, and exactly what Africa needs, said Trevor Field (Field), the social entrepreneur who visualized the concept and gave up his well-paid job with an established publishing house to pursue it.

Roundabout Outdoor Pty Ltd. (RO), a for-profit organization with a social mission co-founded by Field, installed and maintained these PlayPumps while PlayPumps International (PI), a non-profit organization also co-founded by Field, helped arrange the funds for installing the water systems. Over the years, RO and PI were able to build innovative partnerships with individuals, corporations, governments, foundations, and non-governmental organizations (NGOs) to donate PlayPumps to African communities.

The PlayPumps and the business model that Field adopted attracted the attention of experts who felt that it was both innovative and sustainable. They felt that in addition to solving the problem of clean drinking water, the system addressed the closely-related health, education, gender, and economic issues. It was often cited as an example of the emerging trend in sustainable development that applied business solutions to social problems.Moreover, they said that tackling global challenges such as the water crisis required a collaborative approach such as the one that Field had adopted.

By early 2008, while Field had succeeded in installing more than 1,000 PlayPumps in five countries in Southern Africa, he also faced significant challenges in scaling up its operations further in order to achieve his objective of installing 4,000 PlayPumps in ten African countries by 2010.

Roundabout Outdoor & PlayPumps International

 

RO was a for-profit organization with a social mission. We have trademarks in every country where we believe it will be used in the world said Field. For most of the 1990s, the promoters worked tirelessly to improve the water system‘s functionality and durability. This was important as RO had to leave it in a rural community and there would be a lot of problems if the system was prone to breakdown or rapid wear-and-tear.

Another challenge was that the poor people for whom the water system was meant were unable to afford the system that cost around US$10,000 including installation then. Thus, RO had to be funded by private investment and international agency funds.16 Its business model used donations to underwrite the installation of the water system while revenues from advertising funded maintenance. However, the company did not find raising the funds easy in the initial years.

In 1999, Nelson Mandela, then president of South Africa, attended the ceremonial installation of a PlayPump at a school in Rietfontein and was impressed by the water system. This paved the way for the installation of more such pumps in other parts of rural South Africa. The same year, RO entered into a public/ private partnership (PPP) with South Africa‘s Department of Water Affairs & Forestry (DWA&F) to assist the department in its mission to deliver water to all of South Africa by 2008.18 Under the terms of the agreement, RO had permission to access groundwater and distribute it free of charge on the condition that it would also maintain the water systems.

The following year, RO won the World Bank Development Marketplace award for the system‘s ability to deliver water as well as HIV/AIDS prevention messages. While the funds from the World Bank (US$165,000) came in handy, the award also provided more visibility to RO and the company received additional funding from non-profit foundations such as the Henry J. Kaiser Family Foundation (KFF), and other companies. For instance, KFF provided RO with its first large grant for carrying public health advertisements concerning HIV/AIDS, requiring it to raise matching funds through DWA&F. The South African electricity supply company, Eskom, too joined in the effort and sponsored 40 PlayPump units by the end of 2003. ―Without World Bank funding we‘d still be in our infancy, said Field.

In 2003, RO with Eskom and the DWA&F won the Mail & Guardian Investing in the Future Awards for effective use of partnerships offering innovation and social relevance. In 2004, Field co-founded Roundabout PlayPumps (the name was later changed to PlayPump International), a South African NGO, to forge partnerships with corporations, foundations, governments, and individuals and raise funds for the installation of PlayPump water systems. In 2006, PI was also incorporated as a US 501(c)3 (nonprofit) organization.

As RO entered into more partnerships, it continued to scale up; it installed around 700 PlayPump systems by the end of 2005, providing clean drinking water to more than one million people. Since the mid-2000s, it also started expanding into some other countries in sub-Saharan Africa.

During this time, the founders of Case Foundation, Jean and Steve Case, saw a PlayPump in Boikarabelo, South Africa, and joined in the organization‘s effort to install more such water systems throughout Africa. Their support proved crucial in roping in US First Lady Laura Bush (Bush) to support the venture. On September 20, 2006, Bush announced a US$16.4 million PPP to install more PlayPumps including US$10 million from the US government, US$5 million from the Case Foundation, and US$1.4 million from The MCJ Foundation. ―[W]hen I told all my friends that I was going to make a children‘s roundabout that pumps water. And I was going to change the affliction of Africa, they all laughed at me. All of them. But when Laura Bush announced the 16.4 million dollar investment into my company, there was nobody laughing then, recalled Field. The Case Foundation continued its partnership with PI in its objective to raise a further US$45 million by 2010.

RO did not make its financials public. However, PI in its Form 990, reported that for the year ending February 28, 2007, it had assets and income of US$3,055,739 and US$4,699,314 respectively . By early 2008, more than 1000 PlayPump systems had been donated to schools and communities in Lesotho, South Africa, Mozambique, Swaziland, and Zambia. The company employed some 100 people – 14 people in the office in Johannesburg who organized database and computer systems; 35 people in the factory manufacturing the product; the rest were contractors involved in the installation of the systems in various places in Southern Africa.29 The installation crew lived in the provinces in which these water systems were installed.

 

The Playpumps: a social innovation

 

On these billboards, local companies as well as well as multinationals could advertise their products to the communities while the other two sides could be used to provide social/health awareness messages. For instance, in South Africa, these spaces were used to provide HIV/AIDS prevention messages of South Afica‘s national HIV/AIDS prevention program, LoveLife.  The revenue generated from advertising was used for the maintenance of the water system for up to a decade. ―We have shown that these water towers are the equivalent to television, billboards, and magazines in rural areas. A correctly placed ad can yield significant growth for a relevant product in these areas.  Each of these pumps worked for about 15-20 years before they needed to be replaced.

While the pumps were manufactured in Johannesburg, RO recruited and trained people in local communities on installing and maintaining the systems. According to RO, the cost of manufacturing one PlayPump was US$7,000.36 The total cost of setting up a water system was US$14,000 that included the roundabout and pump, storage tank, 7 meter tank stand with boards, standpipe with tap and water runoff, and pipes. It also included set-up costs (such as country scoping, geo-hydro census, borehole assessment, site evaluation, water testing, community orientation, local crew training, specialized surface, transport, and system installation). Six percent of the cost went toward providing organizational support for the management of the US and South Africa offices.

Now communities had access to water without having to pay any user fee. RO also worked with local governments and community leaders to ensure community involvement and ownership from an early stage.Experts felt that the PlayPump was a social innovation that was also sustainable.

PlayPumps provided access to clean drinking water, contributing to public health by improving sanitation and hygiene and decreasing the risk of water-related diseases. Clean water and sanitation were very important for people living with HIV/AIDS to remain in good health and to take medicine. What made the PlayPumps even more attractive was that they offered a renewable, self-sustaining way of providing improved supply of water with minimum wastage. They did not require electricity or diesel to operate. And as they were operated manually in the day time, the borehole had time to replenish its water resources during the night. With electricity or diesel-powered systems there was also the risk of the system being accidentally left on, leading to wastage. Another important benefit was proper storage, which prevented contamination and reduced wastage due to spillage and evaporation.

There were other benefits too. The PlayPumps helped remove the barriers to education as children could go to school and stay longer as they did not have the chore of fetching water. They also had access to safe drinking water, latrines, and hand-washing facilities and school days were not lost due to water-related diseases. The PlayPumps promoted gender equality as girls could also attend schools. And the children had an added motivation to go to school — the roundabout on which they could play to their heart‘s content.

The system also promoted play in regions where there were few safe playgrounds or access to play equipment. This was important as play is considered vital for physical, social, and cognitive development.

Women could spend more time on more productive activities or with their family. As they did not have to haul water over long distances, they were less likely to suffer an injury. ―African and Asian women spend up to six hours a day walking to collect water… If we put a PlayPump in, if you look at the saving on time alone it‘s phenomenal, and it does have a massive impact on the health of children and people in general, explained Field.

Advertising revenue from the pumps also helped provide social/health education messages, particularly HIV/AIDS prevention messages that were so important in regions struggling with this pandemic. These messages raised awareness and also helped reduce the stigma associated with HIV/AIDS. Billboard spaces such as these were quite rare in some of the communities served by PlayPumps.

According to experts, with all these benefits, the water systems also led to economic development and a foundation for sustainable growth. For instance, in some schools in South Africa, some children had even begun growing their own vegetable gardens. In addition to this, RO created jobs in manufacturing, installation, and maintenance. It created jobs in rural areas where PlayPumps were installed. According to PI, its water system helped achieve the UN‘s Millennium Development Goals.

 

Expansion

 

Many investors were attracted by the simple yet ingenious technology and the business model that supported the installation of PlayPumps, and since the late 1990s, RO was able to scale up significantly. PI worked collaboratively with government agencies, corporations, NGOs, and individuals to raise funds for the various projects.

The government provided logistical assistance such as finding suitable locations, safe drinking water, and getting approval from the local community.46 Once a community had agreed that it wanted a pump, a community liaison was appointed. Then RO went about its job of installing the water systems in collaboration with various government departments and agencies engaged in bore-well drilling.

PPP with the DWA&F and funds from companies such as Eskom helped RO scale up significantly in South Africa. By mid-2005, over 600 installations had been completed, a large percentage of these at primary schools.47 RO also started venturing out of South Africa into Mozambique and Swaziland. In Mozambique, loans and technical assistance from IFC helped it to install many PlayPumps while its installations in Swaziland were sponsored by UNICEF and the telecom company MTN.48 IFC supported Roundabout to set up PlayPumps in primary schools in Mozambique through IFC loan and grant financing of US$125,000 and US$90,000, respectively.―Roundabout [RO] is an example where the innovation and experience of a private sector firm are leveraged to deliver big results at the grassroots level, said Richard Ranken, director of IFC‘s Africa Department.After the setting up of PI in the US, funds started to flow more smoothly and RO made more elaborate plans to expand in other countries of Southern Africa namely, Mozambique, Swaziland, and Zambia.

By early-2007, PI had donated more than 800 PlayPump water systems in South Africa, Mozambique, Swaziland, and Zambia.On the occasion of World Water Day, PI launched the ―100 Pumps in 100 Days campaign in partnership with Save the Children USA. On July 25, 2007, PI announced that it had raised US$1.5 million to donate 111 PlayPump.

The pumps also got celebrity support.” We found very few organizations that were able to create such an unbelievable change in people‘s lives for such a small investment.” Jay-Z helped raise funds through concerts and his MTV documentary Diary of Jay-Z: Water for Life raised awareness about the water crisis with a part of the proceeds going to PI, while Vaidisova acted as the international spokesperson for PI.

By early-2007, PI had donated more than 800 PlayPump water systems in South Africa, Mozambique, Swaziland, and Zambia. On the occasion of World Water Day 58, PI launched the ―100 Pumps in 100 Days‖ campaign in partnership with Save the Children USA. The campaign called upon individuals, schools, faith-based organizations, and other community groups to mobilize funds for the installation of 100 PlayPumps in African communities. People could contribute to the campaign by raising funds or donating (Refer to Table I for the donation levels). On July 25, 2007, PI announced that it had raised US$1.5 million to donate 111 PlayPump.60 Motley Fool helped raise funds for 3 PlayPumps. UK-based organization One Water that sold ONE Water bottled water product, under the slogan ―When You Drink ONE, Africa Drinks Too‖ directed 100 percent of the proceeds from sales to the campaign.

 

Challenges

 

Experts felt that RO and PI faced various challenges in meeting its stated mission. The challenges started with finding groundwater sources. This was followed by rigorous testing to ensure that the quality of water was good and that the bore-well recharge was sustainable. If the tests failed, the drilling costs were sunk. The cost of installations was not uniform across different countries and even in different provinces. Inflation in some African countries added to the challenges.

Expansion into a new country also involved a lot of challenges. The organization had to conduct initial country analysis and secure the necessary commitments from the respective government. RO‘s teams had to conduct on-the-ground research, needs assessments, water testing, site evaluations, and consult with other groups and stakeholders in the area in order to find the best sites. It took months of groundwork before a single PlayPump could be installed in a new country.

Another challenge was emerging competition and protecting its IPRs. A South African for-profit entity had developed a similar water system. RO had to intimate the company through its patent attorney that the company was infringing on its IPRs. Field said that a similar system had also been developed in India but he felt that the system may not work as efficiently.

However, according to Field, funding still remained the biggest challenge. Lack of adequate funds was the major hurdle in its way of scaling up throughout Africa and beyond. It had no lack of people from around the world wanting to volunteer and get involved in the installation projects. But the company was unable to accommodate such requests. ―It‘s all very noble. But we‘ve got African people that actually need those jobs…. And also, we have a problem guaranteeing the safety and well-being of foreigners in rural communities, working in areas that they‘re not familiar with, he said.

Another challenge were the maintenance costs of the projects in the long run.

Another challenge was dealing with political instability in neighboring countries when thinking of expansion. For instance, Field wanted to install his pumps in Zimbabwe but could not do so due to the volatile political situation in the country with Robert Mugabe at the helm.