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Grand Challenges Canada invests in ZanaAfrica Group to scale up sanitary pad production.
June 9, 2015
By: Tara Olivo
Associate Editor at Nonwovens Industry
ZanaAfrica Group, a hybrid social enterprise based in Nairobi, Kenya, has secured a major investment catalyzed by Grand Challenges Canada—an organization funded by the Canadian government—to expand women and girls’ access to safe, affordable sanitary pads, and related health education. ZanaAfrica’s first investment capital, totaling CDN$2.4 million (U.S. $1.9 million), places them in a small pool of social enterprises that are successfully transitioning from proof-of-concept grants to investment. A $1 million loan provided by Grand Challenges Canada is being matched by a blend of investments and donations from the private sector, including TripAdvisor and Stewardship Foundation, with $400,000 secured via foundations and another $1 million anticipated. This new funding will allow ZanaAfrica to scale up the production of sanitary pads, drive sales growth, and integrate impact evaluation in education and health into its delivery channels. The company is on track to reach 150,000 beneficiaries through its pads and underwear sales by the end of 2016. This financial injection, combining funds from the Government of Canada and resources of private investors, will bring sanitary pads and accurate health information within reach of rural and urban low-income women and girls now hindered by limited availability and excessive costs. Led by Megan Mukuria, a strong advocate for menstrual health management and Ashoka Fellow, co-founder Dr. Lawino Kagumba, and a diverse team of women, the company’s product line includes both disposable and reusable pads, coupled with underpants, and aspirational comics on diverse topics. ZanaAfrica has developed a tiered distribution model that leverages social enterprises and community health workers (CHWs) alongside traditional channels, such as supermarkets and road-side kiosks, to put affordable pads within walking distance of the girls and women who need them most. With a Phase II Grand Challenges Exploration grant, co-funded between Grand Challenges Canada and the Bill & Melinda Gates Foundation, the company achieved proof of concept. Their inaugural product Safi saves women 75% in daily out-of-pocket expenses and increased CHWs’ pad sales over 1,000% in a pilot with Marie Stopes Kenya, while helping women earn up to three times more than from other pad products. Their new back-to-school kit for girls promises to double the percentage of girls reached and is a real value for money for families or organizations buying for girls. Health-related education, including comics and policy programming, are led by ZanaAfrica Foundation CEO Gina Reiss-Wilchins to create lasting systems change. In East Africa, four in five women do not have regular access to sanitary pads or related reproductive health education. In a region where over 40% of females are under the age of 15, this is a rapidly escalating problem. A school girl without pads can miss up to six weeks of schooling every year and be inattentive in class, increasing her likelihood of dropping out and harming her chances to become a full and productive part of society. In later life, many women lose valuable work hours and thus incremental income because they cannot afford pads. This perpetuates the cycle of poverty. Mukuria, innovator and CEO of ZanaAfrica Group, says, “Grand Challenges has been an incredible partner to help us innovate across the value chain, to create affordable but aspirational brands that resonate with women and girls across socio-economic status, and to embed impact evaluation into our DNA. With our holistic solution, girls can step boldly into the promise of their future and have a real chance to break the generational cycle of poverty.” Since November 2013, ZanaAfrica’s community-based sales have seen 300,000 disposable and reusable pads sold, reaching approximately 20,000 customers of whom 35% are girls. The program is revolutionizing female health and empowerment in Kenya, and brings together the passion to help women thrive, while creating sustainable economic benefits throughout the supply chain.
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