Business model Uduma
The water services proposed by UDUMA stem from the demand from national local authorities and water users. Blending public funds with private investments and a public service delegation significantly reduces public expenditure while increasing by a factor five sustainability of the services.
Revenues are generated from the sales of the water services. The water tariff is set in accordance with local authorities and water user in order to ensure affordability for all.
Users are serviced by a pump caretaker, whom is remunerated by a percentage of the sales. A local mechanic is responsible for preventive maintenance of the pumps and for reparations and is equally paid a percentage of the water revenues. Spare parts come from UDUMA’s local stock. The cashless payment system and periodic water quality analyses are equally part of the service.
The UDUMA model responds to the primary challenges encountered in rural areas (underserviced, isolated populations). Besides the water sector, it can be applied to deliver services for other primary needs, such as electricity.
UDUMA uses technological advancements (mobile money and prepaid cards), to collect data and revenues efficiently in even the most isolated areas. Delivering services to address basic needs from rural populations in Africa is hence becoming a viable business. The cashless payment system developed by UDUMA is unique because it enables anyone to access the services, even those without a mobile phone.