NOT a day goes by that our activities do not require water. For most, it may seem unimaginable to even think about water not flowing out of our pipes. Unfortunately, this is the reality that nine million Filipinos face daily.
While the rest of us who get to consume an average of 50 liters a day can
afford to take water for granted, this does not hold true for those who suffer from water scarcity.
According to Water.org, out of over one hundred million Filipinos, nine million rely on unimproved, unsafe and unsustainable water sources and 19 million lack access to improved sanitation.
Shaping lives one glass at a time
To address the pressing problem of access to clean water sector, Unilever Philippines made a commitment to provide safe drinking water to five million Filipinos by 2020 through the distribution of their Pureit water purifying systems.
In the past four years, Unilever has successfully installed 160,000 Pureit units in consumer homes, saving and protecting the lives of 650,000 people.
“When we first began working on this initiative, we had set a very ambitious goal. Looking back, we have made significant progress in this journey of protecting Filipinos from waterborne diseases,” said Brian Duruin, Business Development head of Pureit Southeast Asia.
The growth in the past years was no simple feat for Unilever. The water purification business required continuous research and development based on customer feedback and industry demands, leading them to evolve as they grew.
“We have come to realize that this battle is not a sprint, but a marathon. We need patience, stamina, and endurance to see this through as one strong community of partners who have weathered challenges and obstacles along the way,” Duruin said.
More than their own hard work and dedication to such an advocacy, what truly drove Pureit’s success was the collaboration between Unilever and their microfinance partners. In order to bring their water purifiers closer to the grassroots, Unilever forged a partnership with 14 microfinance institutions (MFIs), namely, Kasagana-Ka Development Center Inc., Ahon sa Hirap Inc., Kabalikat Para Sa Maunlad na Buhay Inc., Tulay sa Pag-Unlad Inc., Taytay Sa Kauswagan Inc., Simbag sa Pag-Asenso Inc., Center for Agriculture and Rural Development Inc., Mutually Reinforcing Institutions, Alalay sa Kaunlaran Inc., Bangko Kabayan, Community Economic Ventures Inc., People's Alternative Livelihood Foundation of Sorsogon Inc., Negros Women for Tomorrow Foundation Inc., and Kasanyangan Center for Community Development and Microfinance Foundation Inc.
Promoting financial and water access
Microfinance is one of the fastest growing business models in the Philippines and in the world. These are financial products and services, such as deposits, loans, and payment services, that are offered by MFIs to the working class with small businesses, also known as the entrepreneurial poor.
According to the 2017 Financial Inclusion Study, out of the 23 percent Filipinos with a formal account, 8.1 percent of them are clients of microfinance organizations. This is a leap from the recorded 1.08 percent in 2015. Majority of the those who avail of microfinancial services belong to the rural poor. This confirms the advocacy behind providing microfinance—the alleviation of extreme poverty.
The boost in microlending made them an effective partner for bringing water access to underserved neighborhoods. At present, there are more than 200 MFIs operating in the country and they have lent over USD250 million to one million borrowers .
Because of their wide-reaching services and the relationships they have established with the communities they operate in, MFIs are the perfect partner for Unilever’s cause and the distribution of Pureit units.
The highest percentage of account ownership with MFIs recorded by Bangko Sentral ng Pilipinas was in Mindanao, where many areas face water shortage. One of the partner MFIs located there, KFI Center for Community Development Foundation (KCCDFI) of Zamboanga del Sur, is led by Mercy Faustino who first learned about Pureit in 2017.
“Microfinance is not simply a transaction; it is personal. Our clients are people that we know. They are our neighbors and members of our community. Seeing them struggle to acquire a need as basic as water made us decide to take action,” said Faustino.
Upon witnessing the suffering of residents from far-flung barangays who could only rely on wells, springs, and rivers as their water source, Faustino and her organization realized how much it would mean to bring water access to areas that lack water systems.
“We had been pondering on how we could possibly help the mothers in our communities. Through the network of the Microfinance Council of the Philippines, Inc. (MCPI), which we are part of, we learned about Pureit and immediately recognized it as the solution we needed,” Faustino added.
Because of the affordable rates and payment plans that MFIs like KCCDFI offer, availing of the Pureit units turned out to be cheaper than what their customers had been previously spending on unsafe water. In addition, they can also avoid a high power bill because Pureit devices are non-electronic.
Faustino reported that majority of their clients were mothers whose lives had been changed because of the water security and convenience that Pureit has brought. They no longer worry about contaminations, waiting for water to be delivered, and spending money on mineral water.
It is also easy for them to commit to their loans because they only had to pay about P120 per week for a year.
“We firmly and consistently align all our brands and products with the Unilever Sustainable Living Plan (USLP), directing our efforts toward helping the less privileged. The success of our community engagement with our partner MFIs clearly establishes how seriously we take our responsibility,” said Ed Sunico, vice-president for Sustainable Business and Communications.
Benjie Yap, chairman of Unilever Philippines, also believes in the strides that Pureit and their partner MFIs have taken. “Beyond caring for our consumers, our bigger goal is to democratize safe drinking water for all. Providing low-income families with access to water, sanitation, and hygiene (Wash) empowers them,” said Yap. (PR)