Franchising in the Water Sector: Taking over responsibility

Empowering local hands with global resources and experience. Combining entrepreneurial spirit with the support and proven track-record of a strong partner.

Clean drinking water and a well-functioning sewerage system are a matter of course for people in industrialised Western countries. However, a modern water management system is practically unheard of in many countries around the world. The GWFA’s franchise concept makes a decisive contribution to advancing and establishing water sector projects that are urgently needed. The GWFA also ensures compilance with important economic and environmental standards. Water means food: Around 85% of water consumption in Africa and Asia is used for agriculture.

From the traditional model…

Providing integral concepts, covering all areas of a project from start to finish. Franchising is a unique combination of opportunity, support and mutual gain.

Particularly in developing countries, the traditional model for challenging and complex contracts involves the use of an ”international player” as a contractor. The contractor then supplies the client – a municipal water, wastewater, waste management or industrial business – with machines or technology and may also act as the local operator. It is often the case that the international player hires a local sub-contractor, normally a medium-sized company, to provide construction, installation or operational services.

… to a modern franchising concept

Going above and beyond conventional equipment guarantees.

The GWFA franchise model follows a completely different approach: Here, the client goes directly to a local company. By using a local business, the project benefits from its intimate local knowledge and is more client-friendly, politically more acceptable and costs are reduced. The local entrepreneur, however, is unlikely to have the resources to implement the contract alone. The full spectrum of support provided by the internationally experienced franchisor covers technical, commercial, organizational and financial solutions and creates an ideal partnership by joining forces for mutual gain. Genuine win-win situations are rare, but we make them happen: A project implemented to GWFA’s exact specifications comes with an unrivalled performance guarantee for the whole plant, significantly exceeding just conventional equipment guarantees.

Quality

Reliable quality management, exceeding conventional guarantees for machines and equipment by-, establishing a “conditioned performance guarantee“. Know-how available from large international companies in perfect combination with flexible service at local level through the SME Franchisee.

Costs

More input from local SME, means improved cost-efficiency. The Franchise can apply to local constructions and to the assembly of plants while all delegated services are fully optimized in a holistic manner (integrating constructions + financing + operations for water and sanitation).

Financing

GWFA will allow any investor with a track record of profitable projects to enter a general framework contract. Loans can be provided directly to the local SME in its role as Franchisee and/or to the Franchisee‘s employer (e.g. to municipal utilities, water associations, industrial costumers).

Environment & Social Issues

The Franchise-concept enables the development of local water business. Generated by the relatively high regional share in value added, surplus jobs are created. And above all, the improved water and sanitation on-site increases the quality of life (human health and environment).