Micro insurance: a proposed practical solution to mitigate hand-pump maintenance challenges in Malawi

摘要

As part of the grant offer, stakeholder end-users in low- income or ultra- poverty regions are encouraged to contribute 5% of the total hand-pump asset cost in a form of labour or household financing, as set by IMF/ World Bank who is the main project investor. This model also outlines that stakeholder end-users take up the maintenance role when the project sponsors leave the scene, yet there are challenges to successfully maintain the assets. This study attempts to identify end-users efforts and challenges in hand-pump project maintenance and propose a strategy to overcome the gap. Data collection was done using 12 Convergence Interviews, 36 Individual Case Interviews and two sets of Focus Groups in operational as well as non-operational hand-pumps in rural Malawi. Results show that end-users financing is inadequate to cover maintenance of a major hand-pump breakdown and/or overhaul. To address the gap, a risk management plan in form of micro insurance maintenance subsidy is proposed as part of the project design.