Design Expo 2014: Online Discussion - Access to Energy

(Gaurav Mehta) #21

We have tried direct financing models but they are much harder to scale up in terms of risk management

(Vincenzo Capogna) #22

for 'in housing' financing we work with partners on entry-level PAYG solar lights but we have to consider a certain default on the payments. For example: M-Kopa (PAYG solar home system) is a successful company with a repayment rate of 95%.

(Vincenzo Capogna) #23

Regarding working with Banks and MFIs: I found easier to work with SACCOs and MFIs because they can offer loans also on small amount (10-20USD) while for Bank such loans are not attractive.

(Janet Geddes) #24

We seem to have answered the second question in response to the first! On the emerging tech side, I'm curious to understand from practitioners what are the next big tech issues that the sector faces... leaving aside business models for a moment.

(Liz Grubin) #25

We have found that a free product trial plus payment plan drive adoption significantly

(Davinia Cogan) #26

Models that utilise existing networks via FMCG companies, like Coca-cola, and mobile network operators seem to be the future of distribution. Tapping into existing transport infrastructure, such as public bus networks can also be effective. Keeping the context in mind and being adaptable is crucial.

(Zahid Torres-Rahman) #27

Hi Davinia - yes I came across that case recently. Really fascinating. If anyone would like to learn more, here is their web address:

(Gaurav Mehta) #28

We create local village level entrepreneurs who promote the products and drive behaviour change in the community.

(Lewis Temple) #29

Thanks Gaurav, very interesting. Do you have an idea of how to reach the other 90% of customers not addressed by MFIs?

(Zahid Torres-Rahman) #30

Gaurav - can you share some more detail? How do you find the entrepreneurs and what sort of support do you give them?

(Vincenzo Capogna) #31

PRICING: Reducing the upfront cost of the product. For example: Unilever mini-doses of soap or the payments in installments of the PAYG solar lights.

DISTRIBUTION: leveraging existing networks and local trusted salesmen in order to reach a large customer base without the need to set-up an expensive distribution network and to introduce more easily innovative solutions. for example: sunnymoney school campaign leverages the school network to promote solar lamps or PAYG solutions leverage mobile-money to easily and cheaply collect payments.

(Nicole Evans) #32

The company is called BBOXX. From what I understand about how they operate they manufacture their products in China and distrubute them through local partners around Africa.

The markets they've entered are dependent on getting the right partner - and they've also not been afraid to go into conflict areas which has lead to them being market leaders in some locations.

To sum up - they've had to really invest in their whole supply chain; from the local shops which are not further than 25km to their clients, to the financing systems and remote monitoring of their panels to their manufacturer in China.

(Gaurav Mehta) #33

We engage with local NGOs and key opinion leaders to provide us leads, then run a formal selection process. Post selection we provide mentoring and ongoing support to each entrepreneurs, we have now reached more than 2000 local entrepreneurs with this model

(Mrinmoy Das) #34

The energy technology that has the most potential to immediately improve human health and well-being in many developing countries is relatively simple. It is the improved cooking stove would dramatically reduce the exposure to unhealthy levels of particulate pollution in many developing countries, particularly among women and children. Other sectors that offer great opportunities to reduce conventional levels of air pollutant emissions and to improve public health are transport and electricity production.

(Davinia Cogan) #35

On the pricing side, payments in installments is crucial to affordability.

(Robert Silbermann) #36

how important are things like training, leaving products for people to test, women vs. men in the marketing process, performance assurances etc in helping people make the purchase decision thereby increasing access?

(Gaurav Mehta) #37

Extremely important, without an after sales commitment and some sort of trial process in the community it is very difficult to initiate the sales process.

(Liz Grubin) #38

Very important. For new/unfamiliar products, allowing people to test them before committing to payment is a very effective way to promote trust and willingness to pay

(Vincenzo Capogna) #39

having products with warranty (2 years!) and being able to offer after-sales service is determinant in convincing the customer to invest in a new technology.

(Zahid Torres-Rahman) #40

We're going to hear from Simon Berry of ColaLife in tomorrow's forum discussion - he's had some interesting experiences and learnings from working with Coca-Cola in Zambia. That session starts at 3.30 BST / 10.30 ET and will focus on Enhancing Health Outcomes.