The Business Case for Land and Water
We are part of the WASH Alliance International program, a successful coalition that provides access to water and sanitation for millions of poor people. The program has an ambitious and innovative learning and innovation stream on accelerating impact. One way to accelerate WASH programs within a landscape is to frame propositions as a business case using the Canvas Business Model. The result is a Landscape Canvas.
Why is a business case needed? The aim is to engage the private sector in land and water management and gain access to new types of funding. But first, the market must be interested in the valuation and monetarization of natural resources, and this is what the business case for the management (conservation, restoration) of land and water aims to do.
To develop the business case for land and water we work through the following steps:
- Understand the basic needs and the business model of the landscape users.
- Describe the activities and perceived pains and gains of these users in relation to the natural resources.
- Identify shared opportunities (i.e. shared with other landscape users).
- Define capabilities (i.e. what can be done to deliver the shared value proposition).
- Determine the contract partners needed to realize the capabilities and deliver the value proposition.
- Calculate revenue streams and cost structure.
- Determine the financial needs and seek funding.
Two more aspects are critical:
- Relationships, channels and governance.
Governance, channels, and customer relationships are important elements in the Landscape Canvas for managing the relationships between land users and the landscape. Channels provide physical access to the unique value proposition, customer relationships include mechanisms to manage informal relationships, while governance comprises the more formal and institutional framework.
As finance is crucial for starting up activities and businesses, we refer to the white paper on Finance for Land and Water, as a result of the knowledge sharing event in November 2015, financed by the IFAD RAIN4Food program. This publication is a quick read into the finance of integrated landscape management (also referred to as Integrated Landscape Investments).
We also recommend the back ground paper on research related to the business case for land and water. Both documents can be found on the websites of Aidenvironment, RAIN and WASH Alliance International.
For more information, please contact Frederik Claasen.
Finance for Integrated Land and Water Management – A White Paper
The Business Case of Land and Water – The Value Proposition of Natural Resources
The Business Case of Land and Water – Literature research and working case studies