Decentralized fecal sludge management enterprises operate at the margin of viability in many high-density informal settlements. This research maps the full value chain — collection, transport, treatment, and end-use — to identify where enterprises are financially sustainable and where they depend on continued subsidy.
Enterprises that secured an end-use market for treated sludge byproducts, such as soil conditioner or fuel briquettes, showed substantially stronger unit economics than those reliant solely on collection fees, pointing to end-use market development as the more durable sustainability lever.
The findings inform World Bank Group programming on sanitation enterprise support, recommending end-use market development be treated as core programme design rather than a secondary consideration.