Large quantities - small prices

Grundfos installs water systems in Kenyan villages and helps villagers to take out the right loans to pay for them. They pay off the loans by selling 20 litres of water at around US cent 0.5.

In many African countries, clean drinking water is a scarce resource. For many people, water is something they have to pay for – often after having walked long distances. Many mothers and children spend a large part of the day fetching drinking water for the family.

The average price of 20 litres of water is around US cent 0.5 Grundfos therefore saw the potential in installing automatic water systems in Kenyan villages and launched project LIFELINK. Under the project, Grundfos sells and installs water systems and helps the villagers to pay for the investment. Even though the water is sold at as little as US cent 0.5 for 20 litres, Grundfos makes money on the project.

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Help with taking out a loan
The inhabitants of villages that purchase a water system are also given advice on how to take out a bank loan. The owners make the money to pay off the bank loan by selling the water. If one person uses an average of 20 litres of water a day, a village of 400 inhabitants uses three million litres a year.

Grundfos has joined forces with various partners – companies and aid organisations – to realise the LIFELINK project. One of the most important partners in Kenya is a local company which distributes Grundfos pumps.

Aid organisations essential
The task of the Kenyan partner company consists primarily of installing the water systems, while two local engineering companies carry out all the heavy work, casting the foundations for the systems and erecting the towers upon which the water tanks stand.

Grundfos also worked with local aid organisations that could put them in touch with villages in Kenya and find buyers for the water systems. As the people from the aid organisations know both the country and the culture, Grundfos considered them to be the best qualified to select the villages and regions at which the LIFELINK project should be targeted.

Grundfos has, however, learnt that the aid organisations should be chosen with care. It is important to find organisations with an understanding of the commercial side of the LIFELINK project.