SESA_PublicationFinal_LowRes

Project Experiences From
GHANA – UGANDA – TANZANIA – KENYA
Sustainable Energy Solutions For Africa (SESA)
Routes to Market

Photocourtesy:www.eref–europe.org

A publication by: Sustainable Energy Solutions
Africa (SESA)
Edited and designed by
www.integral–media.co.ke
+254 (722) 624 174
Integral Media is a subsidiary of Integral Advisory
Ltd, the SESA Project National Coordinator for
Kenya. Then next line you place this: Managing
Director / SESA Project International Consultant –
Ashington Ngigi.
ashington@integral–advisory.com
Disclaimer:
This report has been prepared for the above
named client for the purpose agreed in the
cooperation agreement. Whilst every effort has
been made to ensure the accuracy and suitability
of the information contained in this report,
the results and recommendations presented
should not be used as the basis of design, and
management or implementation of decisions
– unless the client has first discussed with the
consultant their suitability for these purposes,
and the consultant has confirmed their suitability
in writing to the client. The consultant does
not warrant, in any way whatsoever, the use of
information contained in this report by parties
other than the above named client.
Cover photo courtesy:
www.arti–africa.org
2 Foreword
Ghana
7 Azuri – Pay–as–you–go solar home systems
8 Snv & Barefoot Power – Solar lighting & phone charging products
10 Philips stoves – Clean cookstoves and biomass fuels
Uganda
14 Barefoot power – Solar lighting & phone charging for households,
hospitals & schools
16 Brightlife FincaPlus – Micro–finance for low–income entrepreneurs
Tanzania
20 Arti energy –
• Scaling–up, replication of “Mali Kauli” credit system
• Piloting the “Exchange to Upgrade”
• Extending the Mali Kauli Credit System
• Expansion of Mali Kauli credit system with mobile shop (Pop–up shop)
24 Voltzon – TZ – Computers for secondary schools
26 Exploring “the Sunnymoney Way” in Pwani Region, Tanzania – Students
lighting the way
Kenya
30 Community Lighting Centres – Some light and energy for business
32 Integrating a “Pay As You Go” (PAYG) Business Model into Sales of Philips
BOP products in Kenya
34 Barefoot Power – Home–lighting for farmers
36 Kerea – Accreditation of solar service providers
38 SunTransfer – Off–grid solar for the BoPs in Kenya
39 BlackWealth – Franchising & branding e–solar shops
40 Pop–up shops – Riding into the interior with renewable energy
CoP
42 CoP – Knowledge exchange in sesa communities
Contents

Foreword By Remco van Stapperhoef
SESA Project Manager
W
elcome to this magazine presenting sustainable off–grid energy initiatives
that have been supported by the SESA (Sustainable Energy Solutions for
Africa) program and led by the private sector and social enterprises. Each
of these initiatives has piloted innovative routes to market. This publication
shares their objectives, results and key lessons with you.
SESA has been a Public–Private Partnership (PPP) program between Philips Lighting
and the Dutch Ministry of Foreign Affairs. The program aimed at contributing to the
development of markets for sustainable off–grid energy products (predominantly solar
lighting and solar enabled solutions) at community and household levels in Africa’s rural
and sub–urban areas, with a focus on the people at the Base of the Pyramid (BoP).
The Ministry assigned ETC Foundation, in partnership with Enclude to provide project
management services for the implementation of the SESA program. SESA ended in
October 2015.
Under the SESA program, we conducted country market studies and identified both
market entry opportunities and development constraints. Four African countries were
selected to pilot business models for last mile distribution; namely, Ghana, Kenya,
Tanzania and Uganda.
From 2013 to 2015, various business models and routes to markets (distribution channels)
were tested by providing grant (co–) financing to specific initiatives set up by businesses,
NPO’s (Not–For–Profit Organizations) and business associations. These included:
• 14 initiatives focused on consumer solar lighting; testing models on Pay As You Go
(PAYG) and other finance schemes, last mile distribution, and different product and
services offers.
• 2 cook stove projects, tested PAYG technologies and explored business models
integrating the sales of biomass and cook stoves.
• 9 pilot sites for solar enabled community service – Community Life Centers (CLCs)
– such as health centres, sports grounds and market places, testing solutions, local
operations and commercial viability.
Households solutions
Availability of the products and efficiency in the distribution are required to provide rural
households with affordable quality consumer products on a viable basis. Based on our
observation there was no one size fits all. Different countries, different regions, different
cultures and different physical and organizational infrastructures lead to different market
eco–systems. This has been experienced in the various routes to markets under the SESA
program. We categorized the routes in the following four approaches:
• Supply chain development: This builds on existing businesses and/or entrepreneurial
capacities.
• Partnership: Partnering with organisations that have a remarkable reputation and
reaching out to large number of potential clients (e.g. tea estates, MFI’s, NGOs, teacher
associations etc).
• Full Control: The business owns/controls the distribution channel all the way to the
customer.
• Product + Finance: The business model includes consumer finance (related to service
charges) and repayment solutions (related to mobile banking).
2| SESA ROUTES TO MARKET
Underserved
People In Multi
Billion USD
Market
Access to
electricity
An estimated 1.2 billion
people did not have
access to electricity in
2013. Many more suffer
from supply that is of
poor quality. More than
95 per cent of those living
without electricity are in
countries in sub–Saharan
Africa and developing
Asia, and they are
predominantly in rural
areas (around 80 per
cent of the world total).
Traditional use of
solid biomass for
cooking
In 2013, more than
2.7 billion people are
estimated to have relied
on the traditional use
of solid biomass for
cooking, typically using
inefficient stoves in
poorly ventilated spaces.
Developing Asia and
sub–Saharan Africa once
again dominate the
global totals. Overall,
nearly three–quarters
of the global population
living without clean
cooking facilities (around
2 billion people) live in
just ten countries.
Source: International
Energy Agency
BoP Energy market
According to the IFC
(2007), the total BoP
household energy
market is estimated to
be USD433 billion. While
Africa has the smallest
measured BoP energy
market, it is still an
estimated USD27 billion
(486 million people).
Global annual market
for solar PV consumer
products will grow from
USD550.5 million in 2014
to USD2.4 billion in 2024.

SESA ROUTES TO MARKET | 3
Each approach has its own challenges, and requires a different amount of resources (see graphic 1).
In this magazine, you find how the different business initiatives employed different approaches (see table 1).
These approaches are often intertwined; many initiatives tested under SESA combined several approaches in
developing an efficient and effective market infrastructure.
High
High
Low
Low
Resource
intensity
Route to Market
Approach Product + Finance • Credit
management
• Product design
includes mobile
repayment• Operational
management
• Stock financing
• Appropriate partners
• Training of partners
• After sales chain
Partnerships
>>Potential market capture
Supply chain
Full Control
• Product Attention
(incentives)
• After sales chain Main challenges
Approach
Supply Chain
Development
Partnership
Full Control
Product + Finance
SESA Initiatives
• One initiative concentrated on setting up a franchise model. The set model requires capital
to develop a brand name and the existence of micro and small entrepreneurs willing to
invest and take a risk in a franchise venture.
• Another initiative focused on a key challenge in the sector – “quality”. In Kenya, the Kenya
Renewable Energy Association (KEREA) developed a project under SESA to set up a voluntary
accreditation process for technicians to build consumer trust.
• Several suppliers have worked with NPO’s. In markets where there is hardly any supply
chain, collaborating with existing local NPO’s can be a way forward to start developing points
of sales. In established markets, existing suppliers can relatively easily be matched with
capable local distributors. Some of the SESA initiatives worked with schools to deploy their
products, while others worked with church–based national networks or women groups with
local branches.
• SESA supported the set–up of a fully owned local sales and services centre. The success of
this approach depends on the existing business climate, available local staff, and level of
communication and distribution infrastructure to manage amongst others.
• Depending on the context, product finance options that can be considered include
packaging a product with mobile banking facility, scratch card systems, savings and credit
groups or partnerships with MFIs.
Table 1 – Possible Route to Market Infrastructures
Graphic 1 – Penetration versus Resource Intensity
Each
approach
has its own
challenges,
and
requires a
different
amount of
resources

Community Life/ Light
Centres
In some situations, it is difficult to avail energy
products to consumers affordably, especially
in deeply remote and low populated areas.
In such situations community solutions are
likely to be better suited. Mini–grids have not
been part of SESA’s product portfolio, but
the Philips’ Community Lighting Centre (CLC)
concept is a similar solution. In this concept,
power is delivered to a local community from
a local kiosk/container through a solar system.
From this “kiosk” a portfolio of sustainable
energy services are provided, which are site
specific. They can for example, include in
and outdoor lighting solutions, healthcare
services and communication services. The
community solutions provided are tailor–
made to a location. Please see page 30 of this
magazine for more detail.
Community of Practice (CoP)
SESA has stimulated knowledge sharing
and advocated the CoP approach. A CoP is
a temporary network where participants
with common challenges come together: to
exchange experiences, learn from on–going
projects and develop intervention strategies
for the future business engagements. In
some countries the CoP concept is still in its
early stage of development and adaptation,
whilst in others it took off from the start.
In Kenya for example, a pilot innovation
fund has been initiated by the Kenyan CoP
stakeholders to work together on distribution
logistics (forward and reverse).
Trends
What happens after SESA? The SESA partners
will continue improving their business
models, replicate what is good into new
geographic areas, improve the products in
current markets and adapt to the world’s
dynamism. Consequently, there is a need
for companies to differentiate, to become
entrepreneurial, to be demand focused and
to grow to reach the optimum.
During SESA’s closing workshop, trend
watchers identified that companies’ growth
numbers were slowing down, due to the
companies’ challenges – not because of
diminishing market potential. The market
is rapidly growing. New players are gaining
ground and there is vibrant competition.
Here are some statements and observations
from the workshop participants on how to
address the slowing trends:
• The future of small companies seems
uncertain and the need for collaboration
within the sector appears high, through
different models. This would be by
collaborating inter–regionally and
nationally as well as via PPPs.
• In order to reach scale, capital is required
for growth; hence the need for innovative
ways of lending.
• There is need for more technical
innovations – e.g. combining solar, biogas,
and other resources.
• Change the thinking from solar only
providing light to also providing
entertainment, connectivity, internet/TV
(from solar lanterns to home systems).
• Use the potential of PAYG business model.
• Data collection provides access to
information on consumers’ interest.
• Reduce the product prices to more
competitive ones and add value to the
products i.e., product innovations and
bundle benefits for consumers.
• Consumer education remains important.
Around 75 per cent of complaints are
related to not knowing how to use the
product.
• While there are quality concerns on cheap
Chinese products in the market, there
can also be interesting lessons from the
Chinese routes to market.
• Growth opportunities are accompanied
with new challenges. For example, E–
waste is a growing problem, especially in
last mile areas.
Finally
This magazine is yours, if you would like to
contribute to the further development of
the sustainable off–grid energy products
market. The SESA program hopes to further
stimulate entrepreneurship, drive innovation
and increase competition in this market to
accelerate its growth. The SESA team wishes
you a pleasant read and all the best in your
endeavour to stimulate sustainable energy
solutions for Africa.
Some SESA results:
Supported 16 consumer
product initiatives on
routes to market and nine
CLC sites on commercial
viability.
Developed a platform for
knowledge sharing and
co–operation on shared
urgencies.
At least 1,200 agents/
technicians and 600
teachers were trained.
Over 1 million people were
reached via awareness
campaigns.
Almost 40,000 consumer
products were sold,
showing the market
potential.
Over 9,000 people
benefitted from solar–
powered community
services – and the
numbers are growing.
Some SESA
challenges
experienced in the
field:
Partnerships frictions and
management complexities.
Limited availability of
quality sales agents in rural
areas to keep recurring
business.
Limited local market
intelligence.
Back order stocking could
result in delayed delivery.
Competition with fake and
cheap products.
Competition with similar
products that had different
prices.
Conversion rates.
(Read the individual cases in the
magazine for more detail)

Integral Advisory Ltd
consulting@integral–advisory.com
+254 (722) 624 174 , Kenya
Wamala Musa
+256 787 485 527, Uganda
SEED
info@seed.or.tz
+255 767 513 401, Tanzania
Marindame Kombate
+233 265 929 002, Ghana
National Coordinators
Sesa Implementing Organisations
Organization Country Project Name Contact Email
Azuri Technologies Ghana SESA Indigo Ghana +233 242 209 491 kofi.tandoh@azuri–technologies.com
Limited
SNV Ghana Ghana Solar Lantern Saving +233 246 444 225 EAziebor@snvworld.org
Scheme for Ghana
SNV/Philips Ghana Integrated Clean Cookstoves and + 233 30 701 2440 JRobinson2@snvworld.org
Biomass Fuels Market Assessment
Barefoot Power Africa Ltd Kenya Angaziwa Program: +254 722 914 601 jacksonm@barefootpower.com
Home Solar Lighting for Small
Holder Tea Farmers in Kenya
Kenya Renewable Energy Kenya Development and Implementation of +254 715 116 738 administrator@kerea.org
Association (KEREA) a Voluntary Accreditation Framework
for Vendors of Off–grid
Lighting Products in Kenya
SunTransfer Kenya Kenya Building a Sustainable “Last–Mile” +254 710 100 059 kirubi@suntransfer.com
Investments Ltd (STKE) Distribution Network of Off–Grid Solar
for the BoP in Kenya
BlackWealth Enterprises Ltd Kenya The Esolar Shop Franchise Model +254 713 543 091 paul@blackwealth.co.ke
Tamz Auto Agency Kenya PoP Up Shop Concept – +254 728 098 235 ongamoteddy@gmail.com
Village to Village Approach
SNV/Philips Kenya Integrating a “Pay As You Go” +254 722 506 165 CToroitich@snvworld.org
Business Model into Sales of Philips
BoP Products in Kenya
Appropriate Rural Tanzania Scaling–up, Replication of the use of +255 685 577 907 arti.tanzania@gmail.com
Technology Institute – “Mali Kauli” Credit System and Piloting
Tanzania (ARTI – TZ) the "Exchange to Upgrade" Concept –
To Improve Access for Underserved
Tanzanians to quality Solar Lighting
Products and Services
Extending The Use of the Mali Kauli
Credit System to Kilombero District
for the Distribution of Solar Lights
Expansion of Mali Kauli Credit System
with mobile shop
SolarAid Tanzania Tanzania Exploring the SunnyMoney Way in +255 656 299 099 malgorzata.wojewodka@sunnymoney.org
Pwani Region, Tanzania
Voltzon Ltd Tanzania Solar Powered Computer Labs +255 752 904 043 pepijn@voltzon.com
Barefoot Power Uganda Light up a Village (LUAV) +256 759 212 004 annek@barefootpower.com
Uganda Ltd (BFPU)
FINCA International Uganda FINCAPlus (Brightlife): Clean Energy +1 202 294 9458 Maura.OBrienAli@finca.org
Entrepreneurship in Uganda
SESA Project Managementwww.philips.com/global www.encludesolutions.com

G H A N A
Meaning of
Country’s name
Capital
Largest Cities
Population
Bordering
Countries
Date of Founding
Official language
Top Exports
Money Currency
Random fact
Energy Facts
Ghana’s 84 per cent of households use
solid fuels such as charcoal and firewood for cooking.
Every year, more than 13,400 people die from conditions
related to household air pollution. Over 21 million people
are affected by the same each year.
70 per cent of the reduced forest cover in
the last 40 years is linked to the harvest of cooking fuel.
The Ghana Government is keen on reducing the dependency
on solid fuels by transiting at least 50 per cent of its
population to liquid petroleum gas by 2020.
The word Ghana is known to mean Warrior King,
Ghana’s former name was “Gold Coast” after the
large amount of gold that colonizers found in the
country
Accra
Accra and Kumasi
26.4 million people
Cote d’Ivoire, Burkina Faso, Togo
March 6, 1957
English
Gold and Cocoa
Cedi
Lake Volta in the center of Ghana is the largest
man–made lake in the world, covering 45 per cent
of the total land area
Source: www.africa.com
Ghana

Business Model
Azuri’s business model addressed the issue of affordability
– a key barrier in solar adoption. The company used its
PAYG business model to deploy solar home systems in
last mile markets in Ghana, allowing customers to pay in
installments until they finally owned the systems. Revenue
collection was made through top–up cards. Each system
provided two LED lamps and mobile phone charging in the
user’s home.
Target Market
Azuri’s target customers were predominantly rural, off–
grid households and small businesses. The project set
out targeting Ghana’s central and Volta regions. Initial
deployments started in the cocoa farming areas of
Asikuma in the central region – where about 70 per cent
of the 120,000 households are off–grid. Later, the eastern
and Ashanti regions were also entered.
Partners
The project consortium included two main players: Azuri
and their main distributor, Telereliance. Azuri equipped
Telereliance with solar home systems and trained the
Telereliance staff. Sub–distributors, in turn, managed top–
up card agents. As sub–distribution was a crucial part of the
model, Azuri also provided training on installation, basic
sales and book–keeping skills to the local entrepreneurs.
Key Implementation Results
• Against the target of deploying 4,400 systems and
impacting 22,000 people, 1,056 units were imported
into Ghana by Telereliance and 191 were deployed.
This impacted about 1,000 people over the 12 month
period.
• Azuri provided Telereliance with training for
installation, warranty management and customer
support. Telereliance was also given access to Azuri’s
cloud based Distributor Support System, to monitor
customer data and produce reports for more efficient
top–up card sales and after–sales services.
• Azuri trained 25 agents in five regions to support the
deployment.
• Azuri organised outreach activities such as durbars
(community gatherings or festivals), road–shows and
product demonstrations in target communities.
Project Challenges
After a promising start, with exceptionally high levels of
customer retention and repayment, Telereliance withdrew
management and operating resources from Ghana and
relocated to the USA.
The sudden void resulted in the following challenges:
• Agents and customers were not supported with top–up
cards.
• Minimal technical support for customers.
• Demoralised sub–distributors and agents.
• Stalled deployment rate.
• Customers became largely discontented.
• It became economically un–viable for agent networks
to service customers.
Lessons Learnt
• Owner–managed SME partners could deliver, but were
exposed to the risk of failure – in case management
shifted its focus.
• It was important to build direct relationships with sub–
distributors to provide necessary support in case of
business challenges. This may have been difficult to
approach with the principal partner but should have
been addressed at the outset.
• For top–up card sales, an agent network could only
be deployed successfully where there was a high
population density. This challenge was mitigated
in other areas by using mobile money services for
payment.
• It was important to tailor payment plans to customer
cash flow. For instance, Azuri designed an accelerated
payment plan during the cocoa harvest season when
cocoa farmers had significant disposable income.
Azuri Technologies delivers affordable solar power in rural, off–grid markets. Operating since 2012, the company is
headquartered in Cambridge, UK and has presence in 11 Sub–Saharan African countries. Azuri leverages mobile phone
technology to allow customers to purchase solar power on a pay–as–you–go (PAYG) basis, providing families with clean
energy at half the cost of the kerosene it is displacing.
Pay–as–you–go Solar home systems
Photocourtesy:www.hostelblog.hostelrocket.com/accra–ghana/www.ashden.org/files/Azuriwinner.pdf

Business Model
SNV piloted a modified partnership business
model. The project piloted a savings scheme,
allowing customers to save toward the purchase
of solar lanterns. In partnership with selected BoP
organizations, the project designed and implemented
dedicated savings schemes which provided
customers an incentive to save for solar lanterns. This
model was coupled with a cash sales model for upper
BoP customers that had enough disposable income
to afford one off payments.
SNV and Barefoot provided sales and technical
training to members of the partner BoP organizations
that operated as retailers in their respective districts
or villages. They were equipped with sales invoices
and product brochures for better marketing and
sales results. SNV also provided a base load of
GHS10,000 to the Ghana Permaculture Network. This
was to enable them implement an innovative high–
yielding interest rate savings product for customers
in their target area.
Partners
SNV’s main partner was Barefoot Power. SNV also
partnered with BoP organizations. These included:
The Hunger Project, Jaksally Youth Group, Ghana
Permaculture Network, Hope for Future Generation,
PeyOrg, CII Foundation and Hopefin Trust. It
partnered with commercial retailers to drive sales
under the project. These are: KOS, Solap Enterprise,
Power Solutions and Solans Ventures.
The project’s key performance indicators (KPIs) are
summarized below:
• A total of 3,093 lanterns were sold.
• 12,372 people got access to modern and clean
lighting as a result of this project.
• Awareness on the benefits of savings was created
among about 213,494 people (54,166 households).
Four open market events were organized in Accra
to educate the public about solar lanterns and
ultimately drive sales.
• Eight BoP organisations got functioning savings
schemes.
• Commercial relationships were established with
five BoP organisations.
SNV continued to test the financial viability of the
model by extending the project with a revolving fund.
This runs up to the first quarter of 2016 – with the
aim of pushing more products into the hands of
BoP customers in Ghana; gradually handing over the
business relationships to Barefoot Power.
G H A N A
Solar lighting &
phone charging
products
S
NV Netherlands Development Organization is a not–for–profit international development
organization founded about 50 years ago; and is the lead organization of the project. Since
2012, SNV has focused on three main sectors: Renewable Energy, Agriculture and WASH (Water,
Sanitation and hygiene). Barefoot Power is a global, social for–profit enterprise that manufactures
and distributes solar lighting products and business development services to people at the base of
the economic pyramid (BoP).
SNV targeted the national market which potentially stood at about 2 million households. The
target groups were mainly members of the partner BoP organizations in off–grid areas who lacked
awareness on cost and benefits of modern energy alternatives and faced limited access to credit.

G H A N A
Project Challenges
• Change of management saw the
partnership with KuapaKokoo Farmers
Union aborted. This was resolved by SNV
bringing other BoP organisations on board.
• Sales were initially slow due to customers’
lack of income. This was because the
launch of the project in cocoa growing
areas did not coincide with the cocoa
income season.
• There were technical challenges of the
product at the onset. This was rectified by
the technical trainings.
• Loss of value on savings by BoP
consumers due to the high inflation rate
and depreciation of the cedi as Barefoot
Power’s prices moved in tandem with the
exchange rates.
• Markets near the borders presented some
challenges as potential customers did not
reside in Ghana. The solution was to do
cash sales to such customers.
Lessons Learnt
• There was the need for engaging more BoP
organisations to drive up sales within the
project timelines.
• In the course of implementation, it was found
necessary to contract a microfinance expert for
capacity building in project design, training and
mentorship.
• Adequate training on product use was
imperative for the success of the project. SNV
took cognisance of this at project inception and
delivered the first consignment of solar lanterns
to BoP organizations right after the sales and
technical training of their sales people.
• SNV also established that project implementing
agencies needed to closely study the revenue
patterns in their project locations since the
income of most BoP households was mostly
seasonal.
• There was the need to coordinate with
government agencies for better visibility on the
grid connection efforts/plans.
Photocourtesy:www.snv.org/sector/energy/topic/solar-pv

G H A N A
Clean cookstoves
and biomass fuels
Business Model
The proposed project was set out to develop
knowledge on existing supply chains for biomass
in Ghana, on other household biomass and
woodstovesinthemarketaswellastestingbusiness
models suitable for selling the Philips stove to the
locals. Within the project, SNV explored the best
approach for selecting and training sales agents,
options of scaling–up the sales of the Philips stove
and selecting PV dealers interested in selling the
Philips stove with a PV module.
The following business models were tested for the
sale of the Philips stoves:
• Integrated sales of stoves through supermarkets
and small shops.
• Payroll model.
• Integrated sales through fuel suppliers.
• Sales of stoves to end–users with access to free
fuels.
• Micro–finance model.
Philips Stoves
Partners
1. JCS Investments operators of Solar Kiosk – Sales partners for sales of stoves in small shops.
2. Ghana Alliance for Clean Cookstoves – Stakeholder engagements and awareness creation.
3. Microfin Rural Bank – Piloting microfinance.
4. Organization for Indigenous Initiatives for Sustainability (ORGIIS) – Community mobilization and
piloting of sales to village saving schemes and loans groups.
5. Adam Palm Kernel Processing Group – Piloting of sale of stoves to end–users with access to free
fuels.
Target Market
• Middle to high income rural and peri–urban
households.
• End–users with access to free fuels.
• Village saving schemes and loans
associations.
• Salaried workers in educational institutions
in peri–urban households.
Testing of Philips and
Abellon Eco Chulha stoves
T
he “Integrated Clean Cookstoves and Biomass Fuels Market Assessment Project” was implemented
by SNV Ghana, in partnership with Philips Corporation. The project sought to assess the market
for advanced clean cook–stoves and biomass fuels in Ghana – especially analysing the market for
household gasifier stoves such as the Philips stove.
The objective of the project was to have one or more tested business models for the sale of the Philips
clean cook stove in Ghana. The models tested include the integrated sale of biomass and the Philips stove.

A BoP end–user using the Philips stove with packaged
biomass fuel at Krapa in Ashanti region.
At an outdoor exhibition of cookstoves, Kwarteng explains
the benefits of the Philips stove to a “queen mother”.
Awareness creation campaigns on microfinance model
at community level – Aaron Nyarkotey educating a
community about the benefits of the Philips stove.
Explaining the benefits of the stove during community
awareness creation campaigns.
Project Challenges
• High price of stoves resulted in their slow
adoption.
• Delay in delivery of second batch of stoves
delayed the project implementation.
• There was unwillingness by some MFIs to
provide credit facilities to end–users due to
competing commercial demands.
• There was lack of a well-developed biomass
fuels (such as pellets and briquettes) market in
Ghana.
Lessons Learnt
• End–users were interested in the stove due to
its fuel versatility and adaptability to cooking
traditional meals such as Banku.
• The price of the Philips stove was higher than
the average price of biomass household stoves
on the Ghanaian market; thereby negatively
influencing rate of adoption.
• Salaried end–users got interested in payments
by installment through payroll. However there
were competing products that affected the
adoption of the products.
• 15 Dealers/sales agents/ entrepreneurs were
trained in technical aspects of repairs and
maintenance of the Philips stove and 15 more
were trained in the selling of the Philips stove.
• 300 Stoves + PV modules were sold.
Photocourtesy:SNV&PhillipsGhana

Meaning of Country’s
name
Capital
Largest Cities
Population
Bordering Countries
Date of Founding
Languages Spoken
Top Exports
Currency
Random Fact
From the Swahili version of Buganda, the kingdom of the 52 clans of the
Baganda people, the largest of the traditional kingdoms in present–day
Uganda. British officials adopted the name Uganda in 1894
Kampala
Kampala, Gulu, Lira, Mbarara, Jinja, Bwizibwera, Mbale
37.5 million
Democratic Republic of the Congo, Kenya, Sudan and Tanzania
October 9,1962
Swahili, English
Coffee, Tea, Cotton, Tobacco, Cassava
Ugandan Shilling (UGX)
There are large reserves of crude oil and natural gas in Uganda that are still
mostly untapped

Energy Facts
90 per cent of Uganda’s rural areas have
no access to energy. The national access to
electricity is 14 per cent; with the rural areas
only accessing 7 per cent.
The Rural Electrification Plan and Strategy –
2013–2022 targets to electrify 20 per cent
of Uganda’s rural areas. Uganda’s Rural
Electrification Agency (REA) is working at
having 140,000 solar units distributed
to off–grid communities by the year 2022.
Uganda
Photocourtesy:www.endangeredwildlifetrust.wordpress.com/www.ratinuganda.wordpress.com

Business Model
The partnership model (between Barefoot and
CARITAS) that Barefoot Power deployed sought
to increase the quality of life for people in rural
off grid areas by providing access to modern,
clean, safe, and affordable household energy.
Barefoot Power Uganda supplied solar systems
and offered free training to CARITAS staff and
community members on the usage and benefits of
solar energy for lighting and phone charging – as
opposed to kerosene and diesel generators which
are not environment friendly.
Barefoot Power also installed the systems, trained
community technicians on installation and
trouble–shooting of the solar systems, as well as
providing free service and a 12 month warranty.
This business model enabled Barefoot to deploy
solar lanterns in Uganda’s last mile markets by
allowing customers to pay for the solar systems in
installments via CARITAS Uganda, while they used
them. This model greatly reduced BFP exposure to
credit risk.
Partners
Barefoot Power and CARITAS partnered to reach
1000 households in approximately 10 rural, off–
grid villages.
CARITASisacommunitydevelopmentorganisation
under the Catholic Church. CARITAS has created
community based cooperatives and saving groups
all over Uganda. The organisation provides the
community with services such as: facilitation of
village saving schemes, vocational training, HIV/
AIDS care, peace and reconciliation initiatives in
war torn areas, and demonstration farms.
Target Market
• Farmers and/or fishermen living in the rural
areas with no access to electricity and no
foreseeable connection to the grid.
• Rural community members with little or no
access to grid energy (and are generally buying
kerosene, candles, batteries and charging their
phones at trading centres). They needed to
belong to a community–based organization
(CBO) or savings group and have some access
to regular income.
• Solar systems were sold to 1,000 households.
• Seven CBOs/ savings and credit co–operatives
(SACCOs) trained.
• 16 local technicianstrainedinentrepreneurship.
• Seven rural clinics, schools and four public
areas were lit by the solar systems.
• More than 4,500 people impacted.
Project Challenges
• Low household incomes.
• Fluctuating cash–flows.
• Misuse of solar products leading to breakdowns.
• Difficulty in reaching villages in the interior and
with poor road infrastructure.
• Wrong perceptions of solar system installations
and bad publicity by frustrated users among
others.
U G A N D A
Solar lighting &
phone charging for
households, hospitals &
schools
B
arefoot Power Uganda Ltd is a subsidiary of
Barefoot Power (BFP) Pty Australia. Barefoot
Power improves community livelihood through
the distribution of affordable solar lighting and phone
charging solutions for people at the bottom of the
economic pyramid (BoP). The company, managed
by local Ugandans, provides the community with
opportunities for income generation through the
“Business in a bag training”. This training enables
members of the community to start small scale solar
businesses of their own.
Barefoot Power intervention supported the Uganda
Rural Electrification Agency (REA) strategy (of having
140,000 solar units distributed to off grid communities
by 2022) by setting a target of distributing Connect
1000 and Connect 600 solar systems to 1,000
households, hospitals and schools in Uganda.

Solar school lighting with Barefoot –
SESA “Light up the village” project
A village in Lwengo – Masaka
District being lit by Barefoot – SESA
“Light up the village” project.
Lessons Learnt
• Creative financing could help scale up
the energy uptake in rural communities.
• Working with CBOs gave better reach to
the under–served communities.
• In financing of rural communities,
repayment structures had to be flexible
– in consideration of the planting and
harvesting seasons.
• Strict follow–up of CBOs needed to be
done in order to collect payments, access
new members as well as get feedback on
the performance of the products and
warranty issues.
• Starting up a project in a particular area
can catalyze demand for solar and create
new energy entrepreneurs who identify
the business opportunities.
• A lot more funds need to be spent
on marketing and awareness building
because there were a lot of myths about
solar in the market.
• Service and maintenance was a key
component in setting up and scaling up
renewable energy businesses.
• Partners and the whole distribution
chain had to see the benefits of the
project before buying in.
Photocourtesy:BarefootPowerLtd.Uganda

F
INCA International’s mission is to provide financial services to the world’s lowest income entrepreneurs
so they can create jobs, build assets and improve their standard of living. FINCA is a market leader in
microfinance, with 23 subsidiaries spanning four regions, currently reaching over 1.4 million clients with a
loan portfolio exceeding USD 840 million and deposits of USD 77 million. Originally established in 1985, FINCA
pioneered “Village Banking,” which brings together groups of people in a community, to guarantee each other’s
micro–loans. This approach provides economic opportunities to clients and empowers them through increased
earnings, increased employment and improved livelihoods.
Partners
FINCA Uganda and FINCA International worked in partnership
to create Brightlife, an innovative social enterprise, which is
complementary to FINCA’s traditional core micro–finance
operations. Brightlife facilitated the distribution of solar energy and
other products that deliver immediate improvements to quality of
life at low cost, by drawing upon FINCA Uganda’s existing client
network. Within the project, FINCA International was responsible
for launching the business model, while FINCA Uganda focused
on its core business. It is this core business that FINCA Uganda
brought to the partnership. Through provision of micro–loans to
the end–user of solar products and to micro–retailers joining the
Brightlife distribution network, FINCA Uganda played a vital role
in mitigating the constraints in the value chain and barriers to the
uptake of solar products.
Key Implementation
Results
• Brightlife reached all 25 FINCA
Uganda branches country–wide.
• Over 6,780 lamps were sold, mostly
through VBG instant acquisition
approach. This was above the base
target of 4,475.
• Created jobs both directly and
indirectly. It employed four full–time
staff and 25 sales agents who earn
commission.
Partnership and distribution are the two business
models deployed by FINCA. Partnership is mainly
done through working with FINCA Uganda. Here,
a pre–qualified loan applicant is given a solar
lamp through the village banking group (VGB) on
recommendation by the group manager – without
making any up front payment. The payment is done
in installments. With distributorship, FINCA facilitates
the distribution of solar energy and other products
through their sales agents in their bank branches
country wide. These agents are paid on commission.
FINCA launched a social enterprise called FINCA
Plus which directly supported and facilitated the
value chain for solar energy products in Uganda
and developed deep and mutually beneficial
relationships with a variety of actors within the
chain. Target groups included solar energy product
suppliers and a network of entrepreneurs that FINCA
trained as micro–retailers of solar energy products.
Micro–finance for low–
income entrepreneur
U G A N D A B R I G H T L I F E
Business Model

Lessons Learnt
• Large distributors capable of buying
inventory on cash were hesitant
to invest in inventory thus slow to
come on board. Distributors were
also hesitant to take inventory on
credit.
• 40 per cent of sales were driven
by Bright Life area sales managers
(ASMs).
• Tent events outside FINCA branches
and radio campaigns were not
cost–efficient marketing channels.
This resulted in lower sales than
expected.
• Potential credit sales being lost as
a result of lengthy loan processing,
led to delayed lantern delivery.
Project Challenges
• The conversion rates were not stable, they kept fluctuating.
• Competition. Greenlight Planet, Awango Total, and Sunny
Money had all entered the Ugandan market. This however
did not affect Brightlife because of the prime and captive
audience of the FINCA Uganda channel. They also had an
advantage of financing their clients.
• Distribution. Transporting inventory outside Kampala was
a major challenge. The rail and road transport was not
sufficient and transport costs to last–mile distribution
points were high.
• There was poor performance among some of the selected
sales agents/distributors.
• End user financial support was only available to existing MFI
clients at the VBG meetings.
• There was concentration on one product line (one light
system), most households preferred 04 lights. This slowed
down the movement of the other products in stock.
The Brightlife village banking group (VGB) members receiving
solar lanterns during the Amatugga VGB meeting
Photocourtesy:BrightlifeUganda

SESA ROUTES TO MARKET | 1818| SESA ROUTES TO MARKET
Meaning of
Country’s name
Capital
Largest Cities
Population
Bordering Countries
Date of Founding
Type of Government
Languages Spoken
Latest GDP
Growth Rate
Top Exports
Currency
Random Fact
A combination of the names of two states that merged to form this country,
Tanganyika, and Zanzibar
Dodoma
Dar es Salaam, Mwanza, Zanzibar, Morogoro
49,639,138 (2014 est)
Mozambique, Malawi, Zambia, Congo–Kinshasa, Burundi, Rwanda, Uganda, Kenya
April 26, 1964
Republic
Swahili, English
7 per cent (2013 est)
Cashews, Cloves, Coffee, Tea, Cotton
Tanzanian Shilling (TZS)
Tanzania is the home to Mt. Kilimanjaro, the tallest peak in Africa

Energy Facts
Only 3,000 of Tanzania’s 20,000 primary
and secondary schools are connected to the grid.
More than 90 per cent of the population use biomass –
notably firewood and charcoal, for cooking and heating.
In 2003, the National Energy Policy was adopted to
mainly address national energy needs.
The Tanzania Government is reviewing
the policy to give eminence to biomass and
bio–fuel as energy sources for the population.
The envisioned policy would set guidelines on the
sustainability of biomass through modern technology.
This would see the curtailing of environmental
degradation, which includes stopping unwarranted
cutting of trees to produce charcoal.
Tanzania
Photocourtesy:www.mndscotland.org.uk/2015/04

Appropriate Rural Technology Institute Tanzania (ARTI–TZ) is a Tanzanian NGO established in 2007.
It aims to promote sustainable technologies for energy production, environmental protection,
employment and income generating activities. ARTI–TZ, through its social enterprise ARTI Energy Limited
(AEL), promotes and distributes low cost solar home lighting products, high efficiency charcoal and wood
stoves, and eco–friendly charcoal briquettes. The following are projects under ARTI:
a) Expansion of Mali Kauli credit system with mobile shop (Pop–up shop).
b) Scaling–up, replication of “Mali Kauli” credit system and piloting the “Exchange to Upgrade” concept to
improve access for under–served Tanzanians to quality solar lighting products and services.
c) Extending the Mali Kauli Credit System to Kilombero District for the distribution of solar lights to
schools.
Target Market
ARTI target customers were mainly rural off–grid customers including farmers, low income employees,
small businesses and households.
Business Model
The project includes promotion and marketing
support to dealers and enhances the
penetration of dealers into remote markets
through road–shows. ARTI also provided
dealers with important promotional materials
such as banners, flyers and product brochures
that improve consumer awareness.
ARTI has effectively combined the deployment
of dealer distributor model with the
introduction of an informal credit system
(Mali Kauli) in Tanzania that is based on
existing social relationships. “Mali Kauli”
credit system in Tanzania does not use written
credit contracts. The distributors/ retailers
simply keep track of costs and income of their
customers.
ARTI–TZ was successful in establishing its
activities in Shinyanga, Geita and Mwanza
regions with the financial support of SESA
Program within a four months period (15th
June – 16th October 2015). It started its
operations in 15th July 2015 using a “pop–up”
mobile shop with a network of six dealers/
agents.
This project aimed at marketing and selling
2,600 units of solar home lighting products. It
also created awareness and sensitized 400,000
rural Tanzanians in the Lake Zone to the
advantages of solar lighting solutions for four
months.
ARTI–TZ is keen on sustaining the project
beyond the project period.
Arti energy projects
ARTI–TZ/ Sustainable Energy Solutions for Africa
(SESA) project was implemented in Bagamoyo and
Kilosa districts of Pwani and Morogoro regions of
Tanzania respectively from 1st May 2014 – 31st
April 2015. The project targeted to deploy 3,000
solar lighting systems in Tanzania in 12 months.
ARTI sold a total of 1,974 solar lights. Below is a
summary of the company’s project implementation
results:
• Established a project team, an office, and
employed five staff members including a project
Scaling–up, replication of “Mali Kauli” credit system
Improving access to quality solar lighting products for under–served Tanzanians
Distribution of
Solar lamps to
schools
B aga m o y o and K i l o s a D i s t r i c t s
TA N Z A N I A

ARTI target
customers
were mainly
rural off–grid
customers
including
farmers,
low income
employees,
small
businesses and
households.
A RTI E N E R G Y
manager, two ‘District–in–Charges’ and two
‘Local Champions’.
• Designed, produced and distributed solar light
promotional materials including 65,000 flyers
and 30 banners.
• Developed and piloted the ‘Exchange to
Upgrade’ concept.
• Trained 24 local technicians in Kilosa and
Bagamoyo districts on the installation, trouble
shooting and repair of solar lights.
• Signed contracts, trained and completed
project activities with eight agents/dealers.
• Completed 154 days of promotional activities
(road–shows) promoting solar light awareness
in 11 villages.
• The sold solar lights included Sunking ECO –
970 lights, Sunking PRO 2 – 584 lights, Barefoot
Connect lights – 292 lights and Envirofit
Empower – 128 lights.
• ARTI ordered and received a delivery of 2,210
solar lights from various suppliers.
Piloting the exchange to Upgrade Concept
Improving access to quality solar lighting products for under–served Tanzanians
During the project period, ARTI developed
‘Exchange to Upgrade Concept’. It introduced and
piloted the concept with two project wholesalers.
The pilot aimed at establishing a system for the
customers to return used solar lights that could
be refurbished and resold by wholesalers, in
exchange for credit towards purchasing a new
solar light or system. The concept involved the
following procedures:
• Customers were invited to visit authorized
wholesalers with their used solar lights.
• The wholesalers trained technicians in
assessing the customer’s lights and determining
the extent to which the lights needed repair in
order to be resold.
• The technicians calculated the labour and
material costs of refurbishment; and with the
wholesaler, determined the re–sale value.
• The wholesaler then offered the owner a
discount on the purchase of a new solar light;
he/she calculated the resale value minus the
costs of refurbishment and dealer profit.
During initial trails of the ‘Exchange to Upgrade’
concept, the idea was welcomed by both the
wholesaler and potential customers who saw the
worth of exchanging their solar lights for a better
one, later on, as added value to the purchase.
However, several complications were evident in
the exchange transaction.
They included:
• Customers were often seeking to exchange their
item for a similar one. For example, exchanging
a Barefoot Firefly for a Sunking Pro 2 rather
than upgrading to a better solar product.
• Customers and the dealers were unable to
agree on the value of the light being refurbished.
• Wholesalers were concerned about how the
sale of the refurbished lights would affect sales
of new lights, which bring larger profits.
Photocourtesy:ARTITanzania

Project Challenges
A number of challenges had far reaching
implications and persisted for the duration of the
project. These included:
• The concurrent running of ARTI’s second SESA
project placed a far increased workload on
ARTI’s project management, prompting the
decision to bring in external help in the form of
a project consultant.
• Working with existing commercial businesses
where solar lights were not the business’
primary product was a challenge.
• Economic factors in the area continued affecting
solar sales i.e. a strong reliance on agriculture
and harvest in these districts.
• Most project areas of Kilosa and Bagamoyo
are swarmed with cheap and poor quality solar
lights, which affected the market.
• Over 30 per cent devaluation of Tanzania shilling
against US dollar in three months resulted
in reduced profitability and huge pressure to
increase solar lights prices.
• The piloting of the exchange to upgrade
concept saw customers and dealers fail to reach
an agreement on the value of the discount given
for the solar product brought in.
TA N Z A N I A
Extending Mali Kauli Credit System – Distributing solar lights to schools
K i l o m be r o D i s t r i c t
Lessons Learnt
• Night demonstrations and road–shows displayed the best performance and benefits of the solar
lights.
• Continually working with wholesalers helped maintain focus on the solar lights they were distributing
and reinforced the value of solar lights for their business.
• There was need for conducting promotional events rather than simply using promotional materials
to achieve the SESA objectives.
• ARTI recognised the importance of point–of–sale branding through banners and flyers in providing
product information to customers.
• ARTI also recognised the tendency for wholesalers to rely on these as the sole measure of attracting
customers.
The Appropriate Rural Technology Institute
Tanzania (ARTI–TZ)/ Sustainable Energy Solutions
for Africa (SESA) project was implemented in
Kilombero District, Morogoro region of Tanzania
for 12 months, from 1st November 2014 – 31st
October 2015. The project targeted to deploy
1,500 solar lighting systems in Kilombero under
SESA–project.
Target Market
The project set out to service rural communities
around Kilombero District. The company’s long
term plan was to target the off–grid areas in the
entire country.
• ARTI ordered and received 1,868 solar lights.
• Identified and trained a project team of two
people (one district–in–charge and one local
champion).
• Signed contracts, trained and completed
activities with five wholesale dealers who added
low cost solar home lighting solutions to their
portfolio of products.
• 12 technicians received two technical training
sessions of three days each, and were equipped
to provide installation and after–sales services
to end users.
• 44 days of road shows across Kilombero District.
• Printed and distributed promotional materials
to wholesalers and retailers. These included
30,000 flyers and 16 banners.
• Sold a total of 699 solar lights.
• About 400,000 people in Kilombero District are
sensitized to the advantages of solar lighting.
While sales did not reach expected targets,
ARTI was convinced that the project laid strong
foundations for the sustainable and long–term
growth of the district wholesalers participating in
the project.
Project Challenges
• Most project areas of Kilombero were swarmed
with cheap and poor quality solar lights, which
lead to some market spoilage.

• Over 30 per cent devaluation of Tanzania shilling
against US dollar in a period of three months
resulted in reduced profitability and pressure to
increase solar lights prices.
• It was a challenge working with existing
commercial businesses where solar lights were
not the business’ primary product.
• Solar sales continued to be affected by economic
factors in the area i.e. a strong reliance on
agriculture and harvest in the district.
• Delays in funding resulted in supply constraints
to wholesalers and weakened the wholesaler’s
efforts in build awareness as they could not
supply the orders received during awareness
campaigns in time.
• Kilombero District had few centres that were
sufficiently sized to sustain wholesale dealers.
A RTI E N E R G Y
The project set out to service rural communities
around Geita, Kahama, Shinyanga and Magu.
• The project sold and delivered 2,248 solar
lights.
• A project team of two people (one district–in–
charge and one local champion) was identified
and trained.
• The project signed contracts, trained and
completed activities with five wholesale dealers
who had added low cost solar home lighting
solutions to their portfolio of products.
• 12 technicians received two technical training
sessions of three days each, and were equipped
to provide installation and after sales services to
end users.
• It opened a distribution hub/office and hired
three team/staff members based in Shinyanga
Town.
• Delivered adequate stock of solar lights to the
Shinyanga distribution hub.
• Engaged six dealers – one in Kahama, three
in Shinyanga Town, one in Bariadi and one in
Mwanza – who has another shop in Magu.
• Carried out eight route sales – mostly visiting
village–based markets with road shows.
Project Challenges
A main challenge was the poor road infrastructure
and the long distances (mostly over 100 km) from
Expansion of Mali Kauli credit system with mobile shop (Pop–up shop)
L A K E Z O N E – TA N Z A N I A
Lessons Learnt
• The road–shows proved to be important in sensitizing villagers to the benefits of solar. They raised
awareness on the availability of solar lights and promoted the wholesalers’ businesses.
• Much of the population relies on farming or related activities. They get their income during the
harvest season which starts in June – explaining the slow sale of solar light from January to May
2015. This had an implication on ordering the lights, promotion activities, end–users financing and
promoting the benefits of ‘mali–kauli’ credit system for rural population.
market to market, and to major towns. The solution
was hiring local sales–team agents accustomed to
the challenges of the road–shows and conducting
market visits with a “mobile shop”.
Lessons Learnt
• Visiting markets and road–shows were helpful.
That however did not translate into direct sales.
• The use of a pop–up shop and market visits
created a greater market penetration –
leveraging on existing infrastructure.
ARTI target customers
were mainly rural
off–grid customers,
that is, farmers, low–
earning employees,
small businesses, and
households.

Computers for
secondary schools
Voltzon – TZ
V
oltzon is a solar power company that works
with a partner organization Greenlink Energy,
Netherlands to install solar energy systems
and appliances for off–grid clients in Africa. Voltzon
aims at providing fully serviced solar powered
tablets to rural schools in Tanzania on lease basis.
17,000 out of 20,000 primary and secondary
schools in Tanzania are not connected to the grid.
The project, Solar Powered Computer Labs for
Schools, targeted to accomplish three results: The
establishment of solar–powered tablets in schools;
Testing a lease concept for replication purposes;
and Capacity–building and itinerary–planning for
teachers.
Target
Contact was made with a secondary school in
Arumeru region, Marororni Secondary School. This
is a mixed school with just over 300 students, with
no access to electricity and a shortage of basic
teaching materials.
The school is located in a largely agricultural area
that has inadequate water for irrigation, which
results in poor harvests. This extended the problem
to the school as, consequently, parents in the area
could not afford school fees for their children.
• A safe cabinet to accommodate the components
of the solar installation and the tablets (except
the solar panels) was procured. This cabinet was
not only for safe storage of the components but
also to keep the system from being tempered
with and also safeguarding it from too many
loads may that may hamper its efficiency.
Ten tablets
for the
project were
procured
and tested
TA N Z A N I A

While leasing,
each parent
was to pay for
the period his
or her child
benefited from
the solar and
IT structure.
V o l t z o n P r o j e c t
Photocourtesy:VoltzonLtd/www.technovation–promo.com
• Legaldocumentsi.e.adraftMemorandum
of Understanding (MoU) and Lease
Agreements that could be used in any
school.
Challenges and Lessons
After a lengthy discussion with the school
management and a presentation of the
project – including its objectives and costs,
to the parent’s committee and the school
board, both the board and parent committee
had objections based on the following:
• They did not like the idea of leasing and
paying a monthly fee.
• They also wanted to own the items.
Voltzon therefore explained to the
parents that the purchase of a solar
installation to run the desktop computers
the school already owned would be
more expensive than the five year
lease amount. It would also exclude the
curriculum to be used.
Voltzon, together with the headmaster
and the deputy, explained the following
to the parent committee and school
board:
• A solar installation needed maintenance,
which is covered under the lease but not
covered when buying it. The school would
therefore keep incurring expenses.
• The desktops were using a lot of power
thus the need for bigger solar installations
that would be more expensive.
• While leasing, each parent was to pay for
the period his or her child benefited from
the solar and IT structure. When buying,
all parents would have to pay the costs
regardless of how long the student would
benefit from the equipment.
They had reservations on the MoU clauses,
especially in case of equipment theft. The
clause stated: “In case of theft/missing
equipment, the school will be liable for a max
of TZS 15,000,000 payable to Voltzon Ltd
within a period of six months from signing
of this agreement.” The board of the school
and the parent committee found it difficult
to commit themselves to this amount.
The available tablet curriculum was also
too expensive (it would increase the parent
contribution from a US USD3 to between US
USD6.50 to US USD20 for each student per
term).
Majority of the curriculums also needed
internet connection; which was challenging
and expensive for an off–grid school.
Conclusion
Leasing is a relatively new concept in Tanzania as
shown in the negotiation with Maroroni Secondary
School. The idea of paying for something without
owning is not welcomed by many, thus likely to be
a roadblock in the expansion of the solar powered
computer labs to more schools.
Way Forward
The school management’s sensitization and
awareness on the value addition of the project will be
key during the initial buy–in meetings. An agreement
was made with the current school that they would
get the system without costs for a trial period of
three months, after which they will have to decide
whether they want to pay lease or would rather not
use the system.
A partnership with Opportunity Education www.
opportunityeducation.org also came in handy. They
have done tablet projects in private schools and were
eagerly searching for opportunities to bring their
project to Tanzania’s rural areas. Their options are
however highly limited by the availability of power.
Opportunity Education is also developing a
secondary schools tablets curriculum based on the
Tanzanian education curriculum. They expect to
have the Form One curriculum ready by mid–2016;
followed by the other classes in the same sequence.
The exercise is in collaboration with Tanzania’s
secondary school teachers. This not only ensures
the enactment of Tanzania’s original secondary
schools’ curriculum but also considers the students’
background. Opportunity Education, which trains
teachers in using the tablet system, is willing to
incorporate the teachers of Maroroni Secondary
School in the training.
The lease program shall see to it that schools repay
the solar system and laptops within a five year term.
The replacement of tablets and maintenance of
the solar system is included in the lease fee. Since
the system installed at Maroroni Secondary School
is already paid for by SESA’s funding, the lease
payments will be used as a revolving fund to support
the spread out to more schools.

The project, Exploring “The SunnyMoney Way”, aimed at providing solar light sales through
school campaigns and direct sales to head–teachers and agent networks from 1st May 2014
– 31st April 2015. It targeted to deploy 24,225 solar lighting systems under the SESA–project
in 12 months and benefit 125,606 people in rural and peri–urban areas of Tanzania’s Pwani
Region.
Business Model
This market led business model provided improved
access to clean energy for lighting and phone
charging through school campaigns, direct sales to
head–teachers as well as through agent networks.
The key marketing strategy was the school
campaigns where students were targeted to
create awareness to their parents. This was
followed by direct sales, phone calls and deliveries
to head–teachers to have them propel the market
penetration and demand in the area. Trained
agents then followed with a supply of solar lights,
mostly through hired/public transport.
Partners
SunnyMoney worked with Tanzania Heads of
Secondary Schools Association (TAHOSSA), a
non–profit and nonpolitical organization that
represents all secondary school head–teachers
in Tanzania. TAHOSSA was instrumental in having
SunnyMoney gain the co–operation and good will
of head–teachers to support the distribution of
lights to their students.
Target Market
SunnyMoney target customers were mainly urban
and rural off–grid customers, including farmers,
small businesses, low earning employees, and
households. The project targeted all the six districts
in Tanzania’s Pwani Region. It had planned to reach
589 head–teachers in both primary and secondary
schools and recruit 25 agents to sell solar lights.
The company’s long–term plan was to target about
1.92 million people living in Tanzania’s off–grid
rural and peri–urban areas. It was out to have them
enjoy environmentally sustainable improvements
in nutrition, income, employment and education as
a result of access to clean energy for lighting.
Students lighting the way…
Exploring “The SunnyMoney Way” in Pwani Region, Tanzania
t a n za n i a
Taking solar
products to
the last mile

• 11,508 lights were sold as follows: 3,036 through
school campaigns, 386 via direct sales to head–
teachers, and 8086 through an agent network.
• Designed and printed appropriate marketing
materials for school campaigns and agent–
recruitment sessions.
• Had meetings with regional and district education
officials in all six districts of Pwani region.
• Planned and enacted school campaigns.
• Had head–teacher meetings with 661 teachers
in all districts.
• Had sales delivery meetings and sold 3036 lights.
• Had direct sales calls and deliveries of 386 lights.
• Established a dedicated–agent recruitment team
activity in all six districts, which recruited and
trained 30 agents.
• Conducted baseline market research and
produced a monitoring and evaluation (M&E)
report on solar lights in Pwani region. This
involved head–teacher interviews, student focus
group discussions, and customer interviews of
2,480 research interactions.
Project Challenges
• There was delay in production and shipment
of the solar lights, which subsequently delayed
stock delivery, head–teacher meeting schedules
and campaign sales deliveries.
• An increase in the number of fake and sub–
standard lights in the market.
• Lack of consumer knowledge about quality lights
and consumer focus on price vs. quality.
• There were uncertainties and changes in school
examinations and schools closing schedules,
making it difficult to plan school campaigns.
• Direct sales to teachers experienced challenging
delivery logistics with lack of transportation
options.
• FOREX fluctuations lead to an increase of the
lights’ wholesale and retail prices.
Lessons Learnt
• Manufacturing issues and late stock delivery
caused program delays. SunnyMoney therefore
learnt the importance of having reliable
suppliers.
• Through agent recruitment activities,
SunnyMoney learnt the importance of face
to face visits in building trust and impacting
relationships with agents.
• Baseline market research and M&E reports on
solar lights in Pwani region revealed key features
of the solar lights market which could have
value for businesses and projects in similar rural
areas. However, it is important to conduct an
independent evaluation and impact assessment
for the new project for more accurate
strategising.
Solar lanterns display
Photocourtesy:www.groundupproject.net/blog.php/SolarAidTanzania

Meaning of Country’s name
Capital
Largest Cities
Population
Bordering Countries
Date of Founding
(Current State)
Official Languages
Top Exports
Currency
Random Fact
Kenya was named after Mount Kenya from the Kikuyu name
Kere–Nyaga (“Mountain of Whiteness”)
Nairobi
Nairobi and Mombasa
46,445,079
Ethiopia, Somalia, Tanzania, Uganda, and Sudan
December 12, 1963
Swahili, English,
Tea, Coffee, Wheat
Kenyan shilling
Nairobi, the capital city of Kenya is the ‘safari’ capital of the world

Kenya
Energy facts
By June 2014, Kenya had a general national
electrification rate of 35 per cent with only 5 per
cent of those in the rural areas connected to the
national grid. 68 per cent of the population uses
kerosene for lighting. 38 per cent of that uses the
tin lamp – locally known as koroboi.
Over 88 percent of the rural households use
wood fuel for cooking – with the inefficient and
air polluting three–stone stove.
45 per cent of the wood fuel comes from
the forests. This further depletes the already
threatened environment. Kenya targets to grow
its access to electricity to 100 per cent by 2022.
This shall be via a blend of grid extension and
off–grid energy solutions, particularly solar
energy, for the remote areas.
Photocourtesy:www.the–journeys.com/www.commons.wikimedia.org/wiki/File:Maasai–Adumu

P
hilips is known as a global market leader in
various lighting, lifestyle and healthcare products
and solutions. One of Philips’ new focus areas is
developing products and solutions for the Bottom of
the Pyramid (BoP) customers on the African continent.
One of these solutions is the Community Life Centre
(CLC), which delivered solar power to local communities
via a local kiosk/container. The CLC could be
installed at various public spaces, including
clinics, sport grounds and market places.
Power produced by a CLC could be utilized for
multiple purposes, including offering indoor and
outdoor lighting solutions, healthcare services
and communication services.
Two key benefits of the CLC system were the
availability of excess power and the container
space. This enabled sites to utilize excess power
for services such as mobile charging, IT services
(typing, printing and photocopying). They could as
well– rent out the containers and supply power
to local businesses such as mobile payment
agents, barber shops and the like. The revenue
generated from the system could be used to cover
operational, maintenance and repair (OMR) costs.
Phillips installed the first two test sites in Kenya in mid
2014. These were a sports ground and a health clinic.
Philips thereafter rolled out more CLCs and considered
availing more services at CLC sites e.g. drinking water.
Sesa’s Support
SESA supported the rollout of nine CLC–sites. The support included:
• Conducting baseline assessments at potential site locations.
• Development of technical training on CLC installation.
• Site management set–up support and ongoing support in site management.
• Development and roll–out of end–user training to site management teams.
• CLC business model development.
• Measurement of social and environmental benefits of CLCs.
K E N YA
A CLC installed at a sport grounds in Mathare
Community lighting centres
Some light and energy for business
The “Philips Community Light Center”

Output
• CLC guidelines: An easy–to–read manual for
prospective CLC clients, describing how a CLC
works, its maintenance requirements and
recommended organisational set–up.
• Training manuals: Technical training was availed
to local installers. End–user training manual for
site management teams and local businesses
utilizing excess power from CLCs were also
provided.
• 60 people received end–user and business skills
training.
• 36 site management members received
continuous support in the management of a CLC.
Outcome
• Increased access to modern energy services/
products: A total of 3,360 people started using
the sports facilities powered by the piloted CLC
on a monthly basis. The dispensary powered
by CLC served 5877 patients per month. This is
almost a 500 per cent increase from the number
of patients it was serving before the system was
installed.
• Reduced impact on the environment: 1068.09
ton Co2
was saved on a monthly basis.
• Increased local economic activity: 14 new
businesses were established and 9 new jobs
created. Types of new businesses created
included barbershops, mobile–phone charging
and photocopying shop, M–pesa outlets, grocery
shops and soft drinks stores.
• Improved security for CLC areas: On average,
72 per cent of community members living
surrounding a CLC site felt safer to walk outside
after dark because of the lights provided by the
CLC.
Lesson Learnt
From collected data, it was found that most CLCs
generate income through selling excess power or
by hiring grounds. Nevertheless, apart from the
CLC–health site, the SESA supported sites did not
cover their total operational, maintenance and
repair (OMR) costs, making these sites not financially
sustainable yet. This was particularly the case for
CLCs providing outdoor lighting as their main energy
service.

The CLC could be installed at various public
spaces, including ... market places.
Testimonials
“The CLC has created a source of income
to us as the site management teams by
participating in the monthly maintenance
of the panels and the container where we
pay ourselves a fee for labor. This has
supplemented our normal income as well
as enabled us to demonstrate the viability
of using solar to power small businesses
like our barber shop in the village of Kosovo,
Nairobi.”
Geoffrey Onyango – Mathare CLC committee
secretary
“The Philips lights have extended the hours
we get light at night in the school. Pupils can
hold practice sessions after classes without
worrying about security or about stopping
matches before darkness comes”.
John Karisa– Paziani Primary school chairman
K E N YA
Photocourtesy:Philips/www.flipboard.com/@lundbergs/solar–energy

The project was founded on a collaboration between SNV, Philips, Angaza and a local distribution partner
– VEP organisation. SNV was responsible for the project management and coordination. Angaza was
responsible for the development of the PAYG and its integration into the project’s local conditions, and
the training of sales agents on the PAYG use. Philips is the manufacturer and distributor of the gasifier
cookstove and solar lanterns.
In the solar and cook stoves sectors, access to finance has remained a key barrier to the uptake of
renewable energy technologies. Efforts have been made to link consumers and entrepreneurs to financial
institutions but many households are still unreached due to factors such as collateral requirements and
liquidity conditions at the Financial Institutions. Introduction of a PAYG system has the potential to bring
on board more consumers who are left out of the mainstream/rural financial system. Under its global
partnership with Philips, SNV implemented a pilot project focused on the use of ‘Pay As You Go’ (PAYG)
business model in the sale of Philips BOP products in Kenya. The testing phase began with solar lights
to develop the local distribution network and build expertise with PAYG technology for replication in the
cookstove product.
Integrating
a “Pay As
You Go”
(PAYG)
Business
Model into
Sales of
Philips BOP
products in
Kenya
Business Model
The project ‘Scaling up Integrated Renewable Energy
Services in Kenya’ piloted the use of ‘Pay As You Go’
(PAYG) business model in the sale of Philips Pico PV
products and the Philips woodstove in Kenya.
PAYG technology allowed consumers to purchase
the solar lantern and cookstoves in affordable
installments – just like they purchase mobile phones’
airtime or kerosene fuel. With the PAYG model,
distributors achieved increased sales by offering end–
user financing that puts the product within financial
An end–user with one of Philip’s products

Project Challenges
• There was increasing competition from
counterfeit/substandard products in the
market, which were sold at a price lower than
genuine products.
• There was difficulty in reaching remote areas
that had potential, and monitoring of the
technology use and distributor–support.
• Product development challenges caused
delays in delivery.
Lessons Learnt
• ‘Pay As You Go’ (PAYG) model contributed to
the high uptake of solar products.
• There was need for aggressive and sustained
marketing activities by Philips and the
distributor to build the momentum, visibility
and consumer confidence in the market.
• Targeting organized markets catalyzed
adoption of the energy products and spread
of the information. An example is women
groups becoming willing to purchase solar
products.
• Having agents close to the end users was cost
effective as they reduced the cost of transport
to the field during products’ servicing and
awareness building ventures.
K E N YA
Philips Cookstove
and solar lamps
Using Philips
solar lamp
Photocourtesy:SNVkenya
reach of a much larger market segment. The
project tested two approaches:
• Cable–based technology for solar lanterns.
The PAYG unit was linked to an Android smart
phone with an Angaza mobile app. Payment
was monitored through the distributor’s
Energy Hub platform via wireless data
connection on the phone.
• Cook stoves were fitted with an IR/keypad
technology that uses a remote control.
Although the technology was developed and
integrated, selling had not started by the time
project ended.
The project targeted 5,000 BoP households that
used kerosene and charcoal for cooking, as well
as stove and fuel entrepreneurs.
• Technology integration was accomplished
also for the cookstoves.
• Launch of PAYG enabled solar products
through VEP and field testing of the Coostoves
PAYG products into the country through VEP.
• 250 PAYG solar products were sold.
• Entrepreneur strengthening – eight male and
three female agents from VEP.
• The implementation of the PAYG marketing
strategy.
• The establishment of the PAYG monitoring
structure.

B
arefoot Power is a social enterprise that provides affordable renewable energy solutions for
people in developing countries. It considers energy access as one of the key building blocks
of economic development and the first step to alleviate energy poverty; thus the focus on
the most basic need for clean and affordable lighting.
To achieve this, Barefoot Power designed, manufactured and distributed micro–solar lighting and
phone charging products targeting communities in developing countries. The mission was to help
low income families break their dependence on inefficient, expensive and harmful light sources
by giving them cleaner and cheaper options.
Partners
• KTDA Foundation: Provided network of around
600,000 tea farmers (600 factories), promoted the
initiative to the farmers and identified factories for the
pilot.
• Greenland Fedha: Provided loans to farmers to enable
them purchase solar home systems. It also carried out
credit assessments, risk management and collection
of installment payments from tea farmers.
• Factory unit: Disseminated information to the buying
centers, provided storage and work space, delivered
credit applications and solar products to their buying
centers.
• Buying Centers: Disseminated information to the
farmers and promoted the initiative.
• KIVA: Provided interest–free revolving funds for KTDA
to make initial upfront solar purchases.
Business Model
Barefoot Power’s Angaziwa program thrived
on institutional partnerships and provided
home solar lighting for smallholder tea
farmers in Kenya. The project was piloted
within four factories at two different locations
to supply smallholder tea farmers with
solar lighting products. It was also building
the downstream supply chain up to the tea
farmers while leveraging on the Kenya Tea
Development Agency (KTDA) network of
factories and tea buying centres. The model
was designed to eliminate operational, credit
and sustainability risks by partnering with
Greenland Fedha microfinance, and obtaining
the buy–in of factory units owned collectively
by tea farmers.
Home–lighting
for farmers
K E N YA
Photocourtesy:www.oneacrefund.org/BarefootPowerKenya/
www.newafricanmagazine.com

Target Market
The target was small holder farmers or agrarian
employees working in the tea, coffee and flower
sectors. The project was out to provide them
with the opportunity to purchase affordable solar
systems.
• During the pilot, Barefoot Power scaled up 16
tea factories from the initial four.
• 2,000 households were electrified.
• 2,312 households participated in the scale up
programme.
• It scaled up to eight solar home system
products, including solar TVs and radios.
• 1,175 tea farmers and microfinance staff were
trained on the project.
• USD100,000 financing was advanced to the
Greenland Fedha microfinance from KIVA.
Project Challenges
• The Green Land Fedha loan application process
was bureaucratic with the same amount of
paper work required to apply for a USD100
loan as a USD1,000 loan. This led to longer time
of turning loan applications into sales thus a lag
in achieving milestones.
• Scaling up to more factories meant putting up
sustainable last mile service and shops in these
areas. This was capital intensive
Lessons Learnt
• The community of practice
meetings which Barefoot
Kenya attended created a
platform where solutions
were shared.
• With the awareness and
availability of a financing
model even the BoPs
can use solar – not only
for lighting but to access
information on better
livelihoods through solar
powered TVs and their solar
charged mobile phones,
among other benefits.
Awareness session during a marketing campaign
BoPs can
use solar –
not only for
lighting but
to access
information
on better
livelihoods
through solar
powered TVs
and their
solar charged
mobile phones

T
heKenyaRenewableEnergyAssociation(KEREA)
is a non–profit organization established in
2002. Its mandate was to enhance the business
environment for renewable energy technologies. It
implemented a voluntary accreditation framework
for off–grid lighting businesses in Kenya.
The accreditation project aimed at addressing the
quality of the products and associated after–sales
services, information provision for consumers, and
access to products and services. This was with the
objective of reducing market spoilage and increasing
consumer confidence in solar PV as a viable
electrification option.
The project was responding to Kenya Solar
PV regulation, 2012 and Solar PV Curriculum
Development and Institutionalization, which were
developed with the intention of improving the
delivery of products and services within the solar PV
sector.
Profile
Amongst other means, the association pursued its
mandate by engaging in advocacy for policy and
regulations, facilitating collaboration and capacity
building amongst stakeholders within the sector. The
association is a business membership organization
and is comprised of 50 active members and a
network of greater than 2,000 private businesses,
tertiary academic/ training institutions, government
and non–government institutions and individuals
active in the renewable energy sector.
Voluntary Accreditation
Frameworks
The process for the voluntary accreditation framework
for solar PV businesses in Kenya consisted of
developing a criterion for accreditation of renewable
energy product and service providers, promoting
the accreditation system to solar PV businesses
countrywide and providing guidance on the
requirements of the accreditation criteria.
It included receiving applications from interested
businesses and implementing the auditing and testing
process for these businesses. It promoted accredited
businesses, engineers or technicians to the public and
potential markets through branding and/or publicity
through media, awareness campaigns and the KEREA
website.
Designing and developing a mobile based tool
(USSD code *860#) through which households could
access information on accredited solar PV vendors
and technicians was another one of its processes. It
developed and implemented a sustainable process
of regular and continuous monitoring and verification
which included a feedback/complaints desk.
Accreditation of solar
service providers
K E N YA

• In consultation with the stakeholders, KEREA
developed a criteria, systems and processes for
accreditation of importers/suppliers, dealers/
vendors and technicians.
• 259 technicians, 238 vendors and 27 suppliers
were reached during the voluntary accreditation
framework awareness.
• Statistics from the telephone service provider
(Safaricom) indicate that 4,125 people have used
the USSD tool from the day it was launched.
• It marketed the accredited vendors to at least
800,000 households across 60 major centres.
This was through:
• Radio advertisement on Radio Citizen for two
weeks and 10 Vernacular Radio Stations for one
week.
• TV advertisements on Citizen TV for two weeks.
• 13 Billboards were placed at strategic locations
across the country and the adverts ran from
November 2015 to January 2016.
Project Challenges
Key aspects of the accreditation criteria included
product quality, warranty periods and competency
of the service providers. Compliance in these
three areas was mandatory for businesses to be
accredited. The following factors decelerated the
uptake of the accreditation framework:
• Lack of licenses for most technicians.
• Most businesses did not have licensed
technicians.
• Not complying with warranties citing longer
warranty periods.
Lessons Learnt
• The mobile based tool had the flexibility to add
more products and services i.e. it could be used
to market other renewable energy products
and services e.g. solar water heating, biogas,
solar loans etc. This diversification was key to
sustainability as the additional operational costs
were minimal.
• The uptake by vendors and technicians was
relatively low – considering the effort taken
to create awareness. It is likely that the fees
may have been prohibitive and they were
unable to appreciate the advertising value of
the framework. With diversification of the tool
to other RE products and services it would be
possible to reduce subscription fees to increase
their participation.
• Continuous marketing of the USSD Code
was necessary to ensure its relevance and its
sustainability. A user survey to collect feedback
on the tool (e.g. whether it was user friendly
and effective) would be key to improving it. The
database of user telephone contacts generated
should also have been used to undertake follow
up/targeted marketing.
Stakeholders following the discussions during the prelaunch of
the USSD tool – Strathmore Business School
Testimonials
“We received approximately 50 to 70 phone calls from consumers who got our number by dialing *860#.
Approximately 85 per cent of calls were inquiries on the solar systems types we supply and their costs. 15% of
calls were general inquiries about who we were and what we were doing. The calls were from across the country.
Approximately 15 people physically visited to purchase solar systems.”
Douglas Dullo – Corporate Sales And Partnerships Manager Black Wealth Enterprises Ltd
“Most of the inquiries were made in September when the Radio advertisements were going on. They however went
down significantly after that. Most of the callers claimed to have heard the advertisement and dialed the USSD
code to find out more about solar products.”
Ismael Abisai – Quality Assurance Manager – Ubbink East Africa Ltd
Stakeholders’ Consultative Workshop –
Strathmore Business School
Photocourtesy:www.lloydselectricservice.com
/KEREA

Business Model
It used a business model that combined end–user finance via our “pay–as–you–go” innovation and
service delivery via solar centers (SC) strategically located in rural areas – closest to the target BoP
market. The model supported end user microfinance by intelligent CODE payment technology:
• No payment = no CODE
• No CODE = system stops automatically after end of current paid time period.
S
unTransfer Kenya (STKE) was an innovative social enterprise with the mission – to make
quality solar energy accessible and affordable to over 6 million (80 per cent) off–grid
households in Kenya – majority being BoP. SunTransfer provided sustainable energy
solutions for off–grid areas in developing countries.
Off–grid solar for
the BoPs in Kenya
• 3,915 units were sold.
• The project reached out to 26,955 people.
• The project managed to open up eight new solar
Centres (SCs) in Eastern, Rift Valley, and Nyanza
regions corresponding to 80 per cent achieved
against the target.
• 42 people were trained.
• 50 SMEs and 70 ROSCAs were active along the
supply chain.
• 42 green jobs were created.
Project Challenges
• Substandard products cut the confidence of
the local community on solar products in solar
centre areas.
• Depreciation of the Kenya shilling (KES) against
the USD – between Jan – Apr 2015. The Kenya
shilling depreciated by about 3 per cent, thus
affecting the cost of importing solar products.
The weaker shilling also increased the cost of
supplier credit since the supplier line of credit
from SunTransfer, Germany, is in USD while the
trade is in KES.
• The two models did not show expected results.
Most of the SMEs & ROSCAs recruited fell off,
leading to low achievements of the objectives.
Lessons Learnt
• The higher capacity solar home systems (50W
and 70W) showed higher demand compared
to smaller capacity units e.g. 20W. This was
primarily because the larger systems could
power the solar TV while the smaller systems
could not.
• Solar centre distribution model solved the
challenges of forward and reverse logistics. The
turnaround time for a faulty product getting
back to the customer in its repaired state was
roughly two weeks. The solar centres model
reduced the turnaround time for product
repairs. Customers get their products in less
time as stock is available at the solar centre.
During a SunTransfer
training session
K E N YA

B
lack Wealth Enterprises (BWE) Limited is an indigenous trading and distribution company in
the Kenya solar energy sector. BWE developed an E–platform and distribution network for
solar energy products targeting 20,000 branded last mile outlets in Kenya and other parts of
East Africa by 2020. Its product focus is off–grid and partial off–grid products and services. They are
keen on quality, affordability and easy accessibility via a wide network of institutional/corporate
partners and individual last mile entrepreneurs such as retailers and repair experts in rural areas.
Franchising &
branding e–Solar shops
Business Model
The business model was a franchise structure
supported by Philips for the African base of the
pyramid (BoP) market. It sought to build the brand as
a community centered model of investment and to
avail the products to both urban and rural areas. The
BWE franchisees enjoyed the following:
• Official access to a nationwide network of clients.
• Certification to supply and support international
brands.
• Internet technology access to all information and
sales via a tablet designed specifically for ESolar.
• Training on sales, solar technology and other
franchise benefits.
Partners
The project partners included the Royal Philips of
the Netherlands – a diversified technology company
with a wide range of consumer solar and cook–stove
products distributed by Black Wealth.
In the course of the implementation, other partners
such as Wells Fargo, SNV Kenya, Payconnect and
Unilever were brought on board.
• 12 branded Esolar Shops were set up – of which
three were Blackwealth’s demonstration outlets.
• 531 units were sold.
• An e–commerce site www.esolar.co.ke was
established.
• BWE brought on board three new brand partners
to support revenue lines for the franchisees
– namely: Schneider – for large solar systems,
Safaricom – for SME business solutions, and
Typotech – for sublimation printing solutions.
• It signed an MOU with RAFODE MFI to supply
products at retail prices which allowed Esolar
franchisees to be the focal supply points at their
respective areas.
• It signed an MOU with SNV for last mile
entrepreneur support where the franchise outlets
received business development training and
mentorship support.
• It marketed the concept across eight structured
events and four agricultural shows.
• It started the RAFODE campaign for demand
creation MoU.
• It initiated non–competing businesses such as
Safaricom’s Lipa na M–Pesa within the Esolar
shops.
Project Challenges
• The high cost of branding fit–outs and marketing
the concept was challenging resulting in delayed
recruitment of franchisees. The fit–out ordering
period took more time than anticipated.
• It took longer than anticipated to roll out an outlet
from concept buy–in. The entrepreneur agreed,
found a suitable outlet location, signed up for the
outlet lease, prepared for it before the actual fit–
out took place.
• Delays were experienced in procuring the
branding fit–outs (branding entailing painting,
mounting of the shelves, furniture and the like),
e–commerce software, and establishment of the
franchises.
Lessons Learnt
• Learning on the franchise as a distribution
model was positively received by all brands as
an organized point of sale. The franchise also
offered an opportunity to complement existing
distribution models such as partnerships that
would leverage the outlets to execute their
promise.
• Most Esolar franchisees would want the franchise
fees loaded onto their purchase prices as opposed
to being billed afterwards as was the initial design.
• More time should have been allocated to set up
an outlet.
• The project could also look into deals with banks/.
They could use standardised business plans for
loan requests to support the franchisee.
An e–solar franchise
Photocourtesy:SunTransfer

K E N YA
Driving into the interior
with renewable energy
T
amz is a consulting and distribution company dealing with renewable energy products and services. It
is endowed with the experience of project planning and operations, project accounting, development
of marketing models and distribution channels for renewable energy products and services. It is
also equipped with designing and developing lending policies and procedures for financial co–operatives,
planning and conducting strategic plans and feasibility studies, project conceptualization and execution,
and business partnerships and structuring.
Business Model
The concept could be termed as the village–to–
village approach of distributing renewable energy
products and services. It mainly addressed the
difficulty in reaching the rural markets, building
partnerships with organisations and distributors
dealing with rural clients, as well as enabling the
sharing of a common resource among various
players in the supply chain.
It was keen on providing a platform for rural clients
who needed renewable energy products and
services through a mobile platform/ vehicle called
Pop–up Shop. This shop would move to the base of
the pyramid (BoP) markets creating a sustainable
income stream for its entrepreneurs. The project
marketed, sold, merchandised and delivered
renewable energy products in a four–month period
(July – Octoer, 2015)
The launch of the Pop–Up shop in Narok, Kenya

Partners
• Philips East Africa Limited – A strong diversified
industrial group leading in health and well–
being, and involved in the manufacture of solar
lighting and clean cookstoves.
• Joyful Women Group (JOYWO) – A Kenyan NGO
that empowers Kenyan women economically
and enhances house–hold food security among
others, through supporting their involvement in
livelihood projects.
The Pop–up shops were piloted through JOYWO’s
social enterprise wing as a distributor partner.
Target Market
The target market for these products as outlined
above were the BoPs in rural towns and villages.
They were individuals and table banking groups (a
group funding strategy where the group members
meet once a month, place their savings, loan
repayments and other contributions on the table
and then interested members borrow immediately)
j1
. They could be long term or short–term loans. The
project operated in Narok, Eldoret and parts of
Kilgoris.
• 17 local champions were trained by the project
team on the use and sale of solar products. The
project team also provided advance logistics
and planning services to other project teams in
17 wards.
• 369 assorted products were sold using the
model.
Project Challenges
• The terrain in interior parts of the villages were
challenging for the vehicle. This led to lost time.
• There was lack of forward agents on the routes
to facilitate activations and logistical planning
services.
• Long procedures in partner buy–in for the
project slowed the momentum of reaching the
targets.
• There were long lead times for availability of
products from the manufacturing partner.
• There was delayed availability of committed co–
financing funds from the local partner.
Lessons Learnt
• Inclusion of a mix of vehicles in the distribution
model was important i.e. the use of smaller
vehicles for sparsely populated areas with rough
terrains and the use of four ton trucks for areas
with larger populations.
• Inclusion of more than one distribution partner
in the market activation for the respective zones
and routes would ensure maximum vehicle
utilization.
• Inclusion of more than one product in the
truck i.e. marketing and promotion of different
manufacturers’ products as per the Lighting
Africa approved listing was important.
Joywo
founder
Rachel
Ruto (third
from right)
together with
members
Photocourtesy:www.joywo.org

CommunitiesofPractice
Knowledge
exchange
in SESA
communities
C
ommunities of Practice (CoPs) were set up as temporary networks to identify common
sector issues, to share good practices, explore common solutions, and to agree on ways
of working together towards the growth and development of the solar energy sector.
They were about sharing experiences that are not in reports or documented good practices, but
those that are hidden – unspoken knowledge; all in a proactive and highly interactive approach.
SESA facilitated this sharing among project implementers and orchestrated international CoP
deliberations with energy organisations and policy makers in the energy sector.
What inspired the establishment
of CoPs?
There was need for new ways of collaboration
in the distribution chain, new partnerships and
multi–stakeholder platforms. There was also the
need to look at the solar products distribution
channels to identify how they could reduce the
costs collectively, and the need for joint actions in
lobbying and advocacy.
Country challenges
In the initial CoPs, organised by the SESA national
coordinators – which brought together around
15–25 participants from over 15 organisations, a
number of country challenges were aired.
Uganda underscored “Inadequate information and
awareness by end users” as an urgent concern.
Other challenges included: the need to engage the
Uganda government to provide sufficient product–
user information, accurate data regarding the solar
resource potential in the coutry, and the need to
promote the solar sector in general.
For Tanzania, “Education” stood out as a common
urgency. Other challenges were: lack of well
informed technicians and dealers, costly transport,
and inadequate funding. There was also poor
logistics, insufficient local training facilities, high
import duties and fluctuating exchange rates.
Kenya on the other hand prioritized the need to
improve its “forward and reverse logistics and
access to finance for end–users and businesses”;
while Ghana’s joint issue was the need to “Enable
its private sector to solve the off–grid lighting
problems and to increase access to solar products
in rural, peri–urban and urban areas.”
CoP successes
Not all CoP’s were successful from the go. In
Ghana, for example, participants demonstrated a
significant sense of ownership and commitment
to the process. There was however a reluctance
to commit to helpful pointers towards being self–
driven. There has been notable over–dependence
on government institutions and programs, which
limits the participants’ willingness to commit to
something that could be done collectively by
themselves.
In Uganda, each CoP meeting was attended
by a number of new participants and other
representatives from organisations that were not
familiar with CoP principles or the issues raised

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