PROFITABILITY OF WATER POINTS THROUGH MICRO FINANCING

ABSTRACT Developing countries generally have a major problem in making potable and clean water accessible to their people in both the urban and rural communities. There is the need for individuals, groups, institutions and the government to find ways to curb this situation which is affecting rural and urban communities in Ghana. Micro financing is the “provision of small size loan and other financial services to low income household.” (Montgomery & Weiss, 2006,). It is important to note that the provision of micro credit through water points will help increase the confidence level of the poor by having small businesses of their own. It will also reduce poverty by bringing a significant improvement of their material lives. This study will attempt to show how micro finance can help individuals, groups and organizations make water accessible to the majority of the urban population. This study also examines the profitability of water points to the urban population through micro financing. To be able address these problems, the project will address the financial and management of water points in other to increase profits and also enhance sustainability of water points business. The data analysis reveals that water points through micro financing are very profitable and sustainable to individuals, groups and financial institutions who will want to go into water business. The research also reveals that water can be more profitable when water is sold between 10 and 20 pessewas per standard unit. It also revealed that water points can be sustainable when effective and efficient management controls are put in place. The importance of privatization in the water sector is that it will help everyone have access to potable water. It will also reduce water borne diseases such as river blindness and guinea worm, since water will be treated. It will also help meet the seventh Millennium Development Goal (MDG) by 2015. This in the long run will ensure more than half the population in the urban centers has access to safe drinking water.