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VILLAGE SAVINGS AND LOAN

ASSOCIATIONS: MARKET POTENTIAL FOR

CLEAN ENERGY PRODUCTS IN KENYA,

RWANDA AND TANZANIA

October 2013

Author: Nozipho Wright, ENERGIA Technical Advisor [email protected]

www.energia.org

ENERGIA International Network

on Gender and Sustainable Energy

Village Savings and Loan Associations: Market Potential for Clean Energy Products in Kenya, Rwanda and Tanzania

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CONTENTS

Abbreviations .................................................................................................................................................. iv

Executive Summary ......................................................................................................................................... v

1 Introduction .............................................................................................................................................. 1

2 Background .............................................................................................................................................. 2

2.1 CARE’s Access Africa Program ........................................................................................................ 2

3 VSLA Profiling Study Approach ............................................................................................................. 4

3.1 Study Objectives ................................................................................................................................ 4

3.2 Approach and Methodology ............................................................................................................... 4

4 Overview of Clean Energy Sector and Renewable Energy Programs ............................................... 7

4.1 Kenya Energy sector overview .......................................................................................................... 7

4.2 Rwanda Energy sector overview ....................................................................................................... 8

4.3 Tanzania Energy sector overview ................................................................................................... 10

4.4 Programs Similar to wPOWER ........................................................................................................ 11

4.5 SCODE – Kenya .............................................................................................................................. 11

4.6 TATEDO – Tanzania ....................................................................................................................... 11

4.7 Developing Energy Enterprises Project (DEEP) – Tanzania, Kenya and Uganda .......................... 12

4.8 Solar Sister – Uganda, Rwanda and South Sudan ......................................................................... 12

4.9 Lighting Africa .................................................................................................................................. 13

4.10 Africa Clean Cooking Energy Solutions (ACCES) ........................................................................... 14

Profiling Study Findings

5 Cooking Energy Fuels and Technologies: Technology and Consumer Profiling .......................... 16

5.1 Kenya Cooking ................................................................................................................................ 16

5.2 Preferred Cooking Fuels and Technologies in Kenya ..................................................................... 17

5.3 Rwanda Cooking ............................................................................................................................. 18

5.4 Preferred Cooking Fuels and Technologies in Rwanda .................................................................. 20

5.5 Tanzania Cooking ............................................................................................................................ 20

5.6 Preferred Cooking Fuels and Technologies in Tanzania ................................................................ 22

6 Lighting Energy Fuels and Technologies: Technology and Consumer Profiling........................... 23

6.1 Kenya Lighting ................................................................................................................................. 23

6.2 Rwanda Lighting .............................................................................................................................. 24

6.3 Preferred Lighting Fuels and Technologies in Rwanda ................................................................... 25

6.4 Tanzania Lighting ............................................................................................................................ 25

6.5 Preferred Lighting Fuels and Technologies in Tanzania ................................................................. 27

7 Market Potential for Improved CookStoves and Solar Lanterns ...................................................... 28

7.1 Suppliers and Distributors of Clean Energy Technologies .............................................................. 28

7.2 ToughStuff, Rwanda ........................................................................................................................ 31


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7.3 ARTIEnergy, Tanzania .................................................................................................................... 35

7.4 Willingness and Ability to Buy .......................................................................................................... 41

7.5 Household Decision Making and Purchase of Clean Energy Products .......................................... 41

7.6 Potential Increased Uptake of Clean Energy Technologies by VSLAs ........................................... 42

8 Women’s ownership and management of clean energy product enterprises: present situation . 44

8.1 Potential for Women Energy Entrepreneurs Outside the VSLA Network ........................................ 45

9 Viability of VSLA Members and Networks in Clean Energy Distribution ......................................... 46

9.1 VSLAs Viability as Clean Energy Markets ....................................................................................... 46

9.2 Potential for Women Entrepreneurs to Participate in the Distribution ............................................. 48

10 Conclusions and Recommendations .................................................................................................. 50

10.1 Conclusions ..................................................................................................................................... 50

10.2 Recommendations ........................................................................................................................... 50

10.3 Way forward: Short Term ................................................................................................................. 51

10.4 Long Term........................................................................................................................................ 53

11 References.............................................................................................................................................. 55

Annexes .......................................................................................................................................................... 57

1. Focus Group Discussions & Interview Participants .......................................................................... 57

2. Focus Group Discussions & Interview Tools ..................................................................................... 60


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ABBREVIATIONS

CARE Cooperative for Assistance and Relief Everywhere

ELK EzyLife Kenya

EWSA Energy, Water and Sanitation Authority

FGD Focus group discussion

GVEP Global Village Energy Partnership

HH Household

ICS Improved cookstove

LPG Liquefied petroleum gas

MFI Micro finance institution

MSEEs Micro and small energy enterprises

MW Megawatt

REA Rural Energy Agency

SACCOs Saving and Credit Cooperatives

SCODE Sustainable Community Development Services

SREP Scaling Up Renewable Energy Programme

SSA Sub-Saharan Africa

TATEDO Tanzania Traditional Energy Development and Environment Organisation

TANESCO Tanzania Electric Supply Company

TSR ToughStuff Rwanda

VA Village agent

VSLA Village Savings and Loan Association


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EXECUTIVE SUMMARY

In 2012, CARE USA began implementing a 3-year multi-country ‘Program in Support of Women’s Entrepreneurship in Renewables’ (wPOWER) that aims to integrate women into small-scale clean energy value chains in Kenya, Rwanda, Tanzania as both suppliers and purchasers. The program is expected to support sales of more than 186,000 solar lamps and 28,000 improved cook stoves between September 2012 and December 2015 in a value chain that reaches from the capital cities out to some of the most remote villages.

This program builds on CARE’s existing ‘Access Africa’ program, which has established Village Saving and Loan Associations (VSLAs) that provide over 3 million women in Sub-Saharan Africa with a basic set of financial services to improve their lives and livelihoods. VSLAs are community-managed groups of about 15 to 30 members, predominantly women, who meet regularly to save and borrow from their pooled savings. VSLAs often have a “social fund”, a sort of insurance vehicle to help members with emergency needs. Once a year, the VSLAs return the collected savings to the members, providing them with useful lump sums; at that point, members elect new officers, invite new people into the group, and often make a special savings contribution to recapitalize the group’s funds.

Village Agents are rural people from the area, usually selected from among the members of existing groups, who receive a special training of trainers program, and train and support new VSLAs on a fee-for-service basis from group members. The VAs have two roles within the wPOWER program:

VAs as Service Providers to VSLAs: VAs support the development, training and provide ongoing support to VSLA groups to connect them to distribution chains in a way that ensures scale and sustainability as well as financial viability. VAs long-term role is to provide a suite of cross-cutting services to VSLA groups.

VAs as distributers of clean energy products: This is a specific enterprise gathering VAs in the clean energy products distribution chain, whose mandate is to ensure access for a specific market segment – the most vulnerable; VSLAs and their surrounding communities.

VSLAs promote women’s empowerment by building their savings and borrowing capacity as well as their financial decision making skills and social and economic networks. CARE is working with private sector partners who will use VSLAs as a platform for selling improved cook stoves and solar lamps. In addition, over 3,000 women entrepreneurs are expected to be trained and launched in small-scale renewable energy businesses, obtaining working capital primarily through their VSLA groups and through supplier credit.

The wPOWER program is creating an environment that enables women to purchase improved lighting and cooking equipment, and also to become suppliers of these technologies. Its main objectives are:

Increased access of women to small-scale clean energy products;

Increased women’s success in ownership and management of small scale last mile clean energy sales and distribution enterprises;

Increased public awareness of the roles of women in clean energy markets; and

Availability of information on the benefits and constraints related to integrating women into clean energy value chains.

ENERGIA Study

In connection with the implementation plans for wPOWER, CARE engaged ENERGIA, the International Network on Gender and Sustainable Energy, to undertake a Study in the three countries in order to:

Develop an inventory of existing cooking and lighting technologies, and of suppliers of clean energy products and services;

Establish the current status of women’s ownership and management of enterprises selling clean energy products;


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Understand and document the preferences of the target customers, as well as those of village agents, prospective women entrepreneurs and surrounding communities;

Assess the market potential for purchases of improved cook stoves and solar lamps by VSLA members;

Assess the viability of engaging VSLA members and networks in sales and distribution of clean energy products and technologies; and

Provide recommendations to CARE wPOWER on the viability of engaging VSLA networks and women entrepreneurs in distribution of clean energy and related technology products.

In each of the three countries – Kenya, Rwanda and Tanzania – a desk study and discussions with CARE staff were undertaken to identify key stakeholders in the cooking and lighting energy sectors, and to map the concentration and location of the VSLAs in planning for fieldwork. In addition, a quick profiling of the energy sector was conducted (through a desk study), to obtain information about the status of cooking and lighting options in rural areas, in terms of technologies, products, prices, delivery, financing mechanisms, challenges faced in use, and women’s involvement in energy service delivery. Global and regional programs that could have an impact on the wPOWER program were also assessed.

Three counties were visited in Kenya (Siaya, Homa Bay and Vihiga), two districts in Rwanda (Kirehe and Nyagatare) and two regions in Tanzania (Arusha and Manyara) in May and June 2013. The following major activities were undertaken during these visits:

a) Key informant discussions with selected retailers / distributors, to understand the communities’ demand for and ability to pay for energy services, the range of products available, distribution channels being used and the retailers / distributors receptivity towards engaging with the VSLA channel.

b) Focus group discussions with members of the VSLAs, the Village Agents and representatives from households in order to establish whether there is potential for a market for improved cook stoves and solar lanterns within VSLA networks. Key informant interviews were also held with selected Village Agents.

c) Meetings and email correspondence with government officials to obtain information on current national renewable energy programs and policy frameworks and assess links to the wPOWER program.

d) Trips to village markets and large supermarkets to assess improved cook stoves and solar lanterns on sale.

e) Feedback and focus group discussions with CARE implementing teams to confirm findings and solidify recommendations.

Findings and Conclusions of the ENERGIA Study

More awareness is needed about clean energy options In general, people use fuelwood, charcoal and other inferior fuels and technologies not out of choice or any specific cultural reason, but because they are simply not aware of alternatives such as better ICSs and solar lanterns available in the market. Potential consumers not knowing about clean energy options seems to be a primary bottleneck. For this reason, a widespread information campaign on different types of ICSs, and solar lanterns, and their benefits and prices is required. Roadshows and radio media can be used to popularize the products and give information on where they can be found.

Community motivation exists to purchase clean energy products Dissatisfaction with kerosene and fuelwood was observed by the ENERGIA consultant during the fieldwork. People are aware that the smoke from kerosene and fuelwood may be causing them health problems, and hence may want to replace their cooking and lighting technologies with clean energy products. Complaints about smoke from fuelwood and kerosene lamps, and the scarcity of fuelwood in some areas, plus the high costs of fuelwood and kerosene, are likely to motivate a large number of VSLA members (there are over 3 million members in the three countries) towards switching to solar lanterns and improved cookstoves, especially as they have access to savings and credit through the VSLAs to help them purchase the products.


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VSLAs can provide effective financing Clearly, innovative financing is required to ensure that clean energy technologies such as ICSs and solar lanterns reach people at the bottom of the pyramid. The VSLA method of financing provides an effective way to enable poor households to access clean energy technologies. However, longer repayment periods may be required for clean energy products than for other purchases financed through the VSLAs.

Additional program support is needed for suppliers and Village Agents CARE’s wPOWER program places a high emphasis on delivery channels that can cover the ‘last mile’ to distribute products to poor rural households. However, as many VSLAs are located in areas without proper roads, they can sometimes be difficult to reach. Suppliers, although well-meaning, are likely to face serious difficulties with regard to reaching these VSLA customers.

The roles of CARE staff, its franchise distributors and the Village Agents and women entrepreneurs as last mile distributors should be clarified. Transportation to distribution points/district and local hubs i.e. VSLA meetings and delivery to VAs shops / enterprises should be divided between franchisees and the supplier. It should also be made clear, which areas the supplier and the franchisees will distribute in, as this would reduce delays in delivery. The fact that there are still many groups that reside in areas further from the supplier hubs that have not yet seen the clean energy products means that CARE should do more to enforce the clause in MoUs with suppliers that covers sharing of product distribution / delivery.

Village Agents would benefit from credit arrangements with suppliers to enhance sales, e.g. the VA makes a deposit and pays the balance after the products are sold. They could also benefit from training on entrepreneurship (sales, marketing, bookkeeping, etc.). Most VAs have basic bookkeeping skills that they acquired from CARE to enable them to establish and support new VSLAs. Refresher courses would be ideal to allow them to get more knowledge and confidence in selling clean energy products.

Recommendations for the Way Forward

Short Term

Liaise with government’s ongoing efforts

Keep regular contact with relevant renewable energy government institutions, i.e. the Department of Energy in Kenya, REA in Tanzania and EWASA in Rwanda, to discuss wPOWER progress and to establish how the wPOWER program can benefit from other government projects until 2015 and beyond.

Plan next steps with CARE Country offices

a) Provide each country office with product samples of ICSs and solar lanterns that are being promoted in each country. These can be used during visits to VSLAs where members have not yet seen the products. The staff can also observe the products over time in order to learn more about how they operate, and limitations of each product.

b) Address the budgetary constraints faced by country teams, which include inadequate funds for training the potential entrepreneurs (VAs) and lack of transport and driver to undertake field visits.

c) Reinforce the Tanzania project staff, particular the Moshi Office as it has only one staff member.


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Develop and Implement an Efficient and Robust Monitoring System

Develop a monitoring form to be used by each VA to monitor performance of each product sold to members of the VSLAs. Follow up rigorously and encourage regular use of especially ICS to avoid loss of interest by the consumers. Kenya country office can share experience on the monitoring with the Rwanda and Tanzania.

Distribution

Establish franchisees in major centers, as is being done in Nyamira / Kisii, Kenya. The distribution model below can be used in particular, to cover areas that are remote and/or difficult for the suppliers to reach.

Distribution Model for Remote VAs and VSLAs

N.B. The franchisee which should be an entrepreneur or local organization, and should have the experience and resources needed to distribute products to the last mile. The franchisee should be under CARE’s direct control and should manage logistics. In Rwanda, there are many people who work within the water delivery chain to households. The franchisee should be encouraged to use the services of these men to deliver to VAs in remote areas of the Kirehe and Nyagatare District.

This Model can be applied in the following counties / districts and regions:

Kenya: Siaya and Vihiga counties as well as Garisssa (367km), Wajir (690km) and Mandera (1139km) Counties. All distances are between the counties and Nairobi.

Rwanda: Kirehe District, and the Rubavu (156km from Kigali) and Gatsibo (102km from Kigali) districts where wPOWER will be implemented in the future.

Tanzania: Babati District (200km from Arusha).

• CARE Country Office

ICS and Solar Lantern Suppliers

• Local Entrepreneur

Franchaisee

• Village Agent

Sales Agents

• Members of VSLAs

Other Community members


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Suppliers and Products

a) Replace the solar lanterns that were sold in the pilot project in Rwanda and malfunctioned immediately. This should be done as a matter of urgency, to protect CARE’s image.

b) Halt sales of any product that is being complained about by more than 10% of the consumers, and reassess. Aim for zero returns. Introduce other brands where there have been complaints.

c) Identify women entrepreneurs, with assistance from CARE, in key village markets and involve them in the distribution of ICSs and solar lanterns. These include the women in Kenya and Rwanda with whom preliminary discussions have been undertaken by the ENERGIA consultant, who showed interest in selling ICSs and solar lanterns.

d) It is better for CARE to stick to more modern types of ICSs, i.e. the Ezystove and Envirofit’s M5000 and CH5200 for the entire wPOWER project in all the three countries. Participants in Kirehe and Nyagatare, Rwanda, appeared mud-stove weary, and the Camarumwe is basically a mud stove.

e) Discuss further, the stove models being distributed by L’s Solution in Tanzania. The G3300 for instance has been upgraded to M5000, which is already being promoted within the wPOWER program by ARTIEnergy (Tanzania) and EzyLife Kenya.

Long Term

a) Set up a private company to operate exclusively as a social enterprise in each country. This could be done at the start of 2015 to ensure that distribution continues beyond the life of the program. As the margins on the solar lanterns and improved cookstoves are very small, and suppliers will find it difficult to reach remote VSLAs, a CARE social enterprise could potentially take on this role, while at the same time adding other basic needs to the distribution channel such as water filters. For example, JITA in Bangladesh, a CARE social enterprise established in 2012, distributes products to remote areas, while at the same time training extremely poor women as entrepreneurs. Other social enterprises to learn from are Solar Sister (solar lanterns), operating in Kenya, Tanzania and Uganda, and SCODE, based in Kenya which deals in improved cookstoves. Funding could be solicited from external partners to establish the CARE social enterprise.

b) Arrange social enterprise training for all staff working on the wPOWER program prior to establishment of the private company.

c) Connect with organizations such as the Global Alliance for Clean Cookstoves and Lighting Africa to share experiences and the results of the wPOWER innovative financing mechanism.

d) Contact the implementers of the World Bank’s ACCES program to share ideas and possibly resources for scaling up of wPOWER in the future.

e) Assess the potential of local manufacturers such as the Jua Kali in Kenya and the Cooperative AJDR in Rwanda to locally produce the Ezystove, for example. Locally produced ICSs would not attract import duties, which would bring down the cost of the ICSs and make them more affordable for poorer households.

f) Work with the suppliers of ICSs to develop an improved stove that can burn both charcoal and fuelwood.

g) Explore the possibility of working with mobile phone networks to promote the wPOWER program, clean energy products and other products that may be added in future. Most members of VSLAs have mobile phones and would benefit from this service.


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1 INTRODUCTION

In 2008, CARE USA set up its ‘Access Africa’ program aimed at reaching 30 million poor people in Sub-Saharan Africa within 10 years (70% of them women), with a basic set of financial services intended to propel them out of a vicious cycle of poverty to a virtuous cycle of rising income, improved health, better education and greater participation in their communities and nations. By March 2013, CARE’s Access Africa program and its partners had reached 3,367,111 members as participants of Village Savings and Loan Associations. In September 2012, CARE received USD1 million from the US State Department to implement a 3-year multi-country ‘Program in Support of Women’s Entrepreneurship in Renewables’ (wPOWER) which intends to integrate women into small-scale clean energy value chains.

CARE USA engaged ENERGIA1: The International Network on Gender and Sustainable Energy, to undertake

a Profiling Study to understand the types, standards and quality of existing cooking and lighting technologies, consumer preferences, suppliers and the various products being distributed by each, and the potential and existing demand and financing opportunities for VSLA members and Village Agents and entrepreneurs (mostly women) in Tanzania, Kenya and Rwanda. The Study, coordinated by Sophie Chitedze, CARE USA’s Senior Technical Advisor, was conducted by the ENERGIA technical advisor Nozipho Wright, with support from Soma Dutta and Sheila Oparaocha.

This is a report of the Study, structured in ten main sections: Chapters 1 and 2 present the introduction and background, Chapter 3 the Study approach, Chapter 4 overview of the clean energy sector and renewable energy policies and programs while Chapters 5 and 6 present the findings of the Study in relation to cooking and lighting fuels and technologies use and preferences. Market potential for improved cookstoves and solar lanterns, and suppliers of clean energy technologies within the wPOWER program are covered in Chapter 7. Chapters 8 and 9 present women’s ownership and management of clean energy technologies, and viability of VSLA members in clean energy distribution, respectively. Conclusions and recommendations are presented in Chapter 10.

1 The International Network on Gender and Sustainable Energy (ENERGIA) is an international network working on training, research and institutional development in the area of gender and sustainable energy. It is hosted by the ETC Foundation in the Netherlands.


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2 BACKGROUND

Over the last decade, in a growing number of developing countries, there has been a welcome shift toward the use of more clean and sustainable cooking technologies and fuels. Unfortunately, however, over 40% of the world's people still use various forms of biomass – such as fuelwood, dung, charcoal, and crop residues – or coal – as cooking fuels. They cook over open fires or on rudimentary cookstoves. In Sub-Saharan Africa, over 82% of the people (approximately 700 million) remain dependent on solid fuels, and this number is projected to increase to 900 million by 2030 (World Bank – ACCESS).

Through decades of research and emerging evidence, it is now known that the use of solid fuels with inefficient cookstoves adversely impacts human health, pollutes the environment, and slows socio-economic development. Exposure to indoor air pollution from incomplete combustion of biomass fuel accounts for nearly 500,000 premature deaths annually in SSA and contributes to the global disease burden. Unsustainable use of solid biomass for cooking contributes to forest degradation and loss of forest cover around urban areas. Furthermore, inefficient burning of biomass for cooking contributes significantly to greenhouse gas emissions (World Bank – ACCESS).

The other major energy use in rural areas is for lighting. Lighting is a basic human need and, along with cooking, is a fundamental driver of fuel demand for low-income households in the developing world. Women and men without access to electricity typically rely on expensive, inefficient and hazardous lighting devices like kerosene lamps and candles to bring light to their homes and businesses (ESMAP – Expanding Women’s Role...). Kerosene, also called paraffin in some countries, is a liquid product of crude oil with a high energy density. Kerosene is widely used in urban households for cooking, heating, and lighting, but is easily spilled and causes a high number of fires and deaths each year. Kerosene is also sometimes improperly stored in soda bottles leading to accidental poisoning of children. There is a growing range of modern lighting products that incorporate innovative designs, and business models through which these are gaining market share. Modern off-grid lighting devices combine the latest advances in clean energy technology (for example, solar, LED, and advanced batteries) to provide a safe, efficient, affordable alternative to fuel based lighting (Lighting Africa, 2011).

2.1 CARE’s Access Africa Program

Founded in 1945, CARE is a leading humanitarian organization fighting global poverty. CARE’s Access Africa program empowers communities through a holistic approach to programming, aimed at improving the livelihoods of individuals and families in the poorest communities. Women are at the center of many of CARE's community-based efforts to improve basic education, prevent the spread of HIV, increase access to clean water and sanitation, expand economic opportunity and protect natural resources.

The first Village Saving and Loan Association (VSLA) was set up in Niger in early 1991, and since then the approach has expanded to 27 countries in Africa, and as of March 2013 had reached 3,367,111 members. This village or group savings and loan methodology is a community managed saving and lending micro finance scheme whose basic principle is that members of a self-selected group form an association and save money by contributing regularly to a fund, governed by the group itself. Members save at a rate matching their capacity, thus lowering the threshold of entry for the poor. The core of the model is investment of the savings into a loan fund from which members can borrow, repaying with a service charge. Members take out loans in amounts closely aligned to their actual needs and opportunities. Such lending allows members to earn substantial interest on their savings. The cycle of savings and lending is time bound and at the end of an agreed period, (about one year), the accumulated savings and service charge earnings are shared out amongst the members in proportion to the amount that each saved throughout the cycle, plus interest earned (www.care.or.ke).

Based on the achievements of the Access Africa program, CARE is currently implementing a 3-year multi-country ‘Program in Support of Women’s Entrepreneurship in Renewables’ (wPOWER) which integrates women into small-scale clean energy value chains. The program builds on its one million existing Village Saving and Loan Association (VSLA) members in Africa, and their Village Agent (VA) independent trainers, in a value chain that reaches from the capital cities of Kenya, Tanzania and Rwanda, out to some of the most remote villages. The target is to sell more than 186,000 solar lamps and 28,000 improved cook stoves between September 2012 and December 2015.

http://en.wikipedia.org/wiki/HIV

http://www.care.or.ke/


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CARE is working with private sector partners who will use VSLAs as a platform for introducing improved cook stoves and solar lamps in the three countries. More than 3,000 rural women are expected to benefit from entrepreneurship training to enhance ownership and management of small scale last mile clean energy sales and distribution enterprises, obtaining working capital primarily through their VSLA groups and through supplier credit.

VSLAs promote women’s empowerment by increasing their decision making skills, building self-confidence, and enlarging their social and economic networks. Crucially, VSLAs increase women’s resources, and with resources come self-confidence, responsibility, and the courage to embark on entrepreneurial activities. The wPOWER program is creating an environment that enables the women to achieve these goals. It aims to increase the economic status of women through increased uptake of clean energy products by rural and peri-urban households in Tanzania, Kenya and Rwanda. VSLAs are an important part of CARE’s wPOWER strategy, which aims to fulfill the following main objectives:

Increased access of women to small-scale clean energy markets;

Increased women’s success in ownership and management of small scale last mile clean energy sales and distribution enterprises:

Increased public awareness of the roles of women in clean energy markets; and

Evidence and learning on the benefits and constraints of integrating women into clean energy value chains documented and disseminated via wide circulation of project reports and clean energy messages through the VSLA members’ networks in the three countries.

The wPOWER initiative will enable CARE to pilot implementation of approaches that combine social and business approaches as well as last mile distribution models in partnership with private sector players, and that can be scaled up in the near future.


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3 VSLA PROFILING STUDY APPROACH

3.1 Study Objectives

The objectives of the Profiling Study were to:

Develop an inventory of existing cooking and lighting technologies, and of suppliers of clean energy products and services;

Establish the current status of women’s ownership and management of enterprises selling clean energy products;

Understand and document the preferences of the target customers, as well as those of Village Agents, prospective women entrepreneurs and surrounding communities;

Assess the market potential for purchases of improved cook stoves and solar lamps by VSLA members;

Assess the viability of engaging VSLA members and networks in sales and distribution of clean energy products and technologies; and

Provide recommendations to CARE wPOWER on the viability of engaging VSLA networks and women entrepreneurs in distribution of clean energy and related technology products.

3.2 Approach and Methodology

3.2.1 Context profiling

In each of the three countries, a desk study and discussions with CARE staff were undertaken to identify key stakeholders in the cooking and lighting energy sectors, and to map the concentration and location of the VSLAs in planning for fieldwork. In addition, a quick profiling of the energy sector (through a desk study) was undertaken to obtain information about the status of cooking and lighting options in rural and urban areas, in terms of technologies, products, prices, delivery and financing mechanisms and challenges faced in use, and women’s involvement in energy service delivery. Case studies of global and regional programs that could have an impact on the wPOWER project were assessed in order to inform the wPOWER Program.

3.2.2 Country visits

In May and June 2013, the ENERGIA consultant visited Siaya, Homa Bay and Vihiga counties in Kenya, the Kirehe and Nyagatare districts in Rwanda, and the Arusha and Manyara regions in Tanzania. All the counties, districts and regions are areas where CARE has already established VSLAs. The distance between the districts in Rwanda and Tanzania made it difficult to visit more locations. The purpose of the fieldwork was to interact with members of the VSLAs, the Village Agents (VAs) and representatives from households in order to establish if indeed there is potential for a market for improved cookstoves and solar lanterns within VSLA networks. Key informant interviews were held also with selected Village Agents.

The following activities were undertaken during the country visits:

a) Meeting with key stakeholders, including CARE staff, to (i) understand their perspectives on the capacities of VSLAs to handle a multi-product distribution chain, and on existing cooking and lighting technologies and their distribution, as well as future products and suppliers to be identified; (ii) collect data on energy use and expenditures, present distribution channels and market structures, existing challenges and gaps, and (iii) make a preliminary assessment of the potential role of VSLAs in energy service provision.

b) Key informant discussions with selected retailers / distributors, to understand the communities’ demand for and ability to pay for energy services, the range of products available, the distribution channels being used and their receptivity towards engaging with the VSLA network.


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c) Trips to village markets and large supermarkets to assess improved cookstoves and solar lanterns

on sale.

d) Meetings and email correspondence with government officials and suppliers of ICSs and solar lanterns in the countries as indicated below.

Kenya

Director, Renewable Energy Department based in Nairobi (through email)

Sales and Marketing Manager, Barefoot Power (solar lanterns), face to face meeting.

CEO, EzyLife Kenya (ICS), through Skype conference and email.

Kigali, Rwanda

Head of Renewable Energy Unit, Department of Energy, Energy, Water and Sanitation Authority (EWASA).

Country Manager, ToughStuff (solar lanterns)

East Africa Managing Director, EzyLife (cookstoves and SolarKing solar lanterns)

Manager, Billem Innovations (improved clay stoves)

All face to face meetings.

Dar es Salaam, Tanzania

Technical Assistance Manager, Rural Energy Agency (REA), Ministry of Energy and Minerals

Programs Director and staff, ARTI Energy (Envirofit improved cookstoves and Barefoot Power solar lamps)

Sales and Marketing Manager, Sollatek (d.light solar lanterns)

All face to face meetings.

Managing Director, L’s Solutions, Arusha, through email and telephone calls (Envirofit improved cookstoves).

3.2.3 Field Work

Fieldwork was conducted in the three countries using the following instruments:

Key informant interviews with Village Agents who support the establishment of VSLAs. The interviews were held with 14 VAs in Kenya, 5 in Rwanda and 9 in Tanzania.

In-depth focus group discussions with men and women in selected communities, representing households where CARE has already introduced the wPOWER program. The focus group discussions were used to document current energy use, challenges faced in the existing product mix, people’s (men and women) aspirations with respect to energy services, their willingness and ability to pay for these and their views on the VSLA network with regard to distribution of clean energy products. The existing level of awareness on ownership of energy enterprises by women was also established during the same meetings. The households were represented by 99 participants in Kenya, 29 in Rwanda and 66 in Tanzania.

Focus group discussions with VSLAs, to understand their willingness to deal with clean energy products and services, their assessment of demand for such products and the specific information, knowledge, skills and capacity required to enable them to participate in the distribution part of the value


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chain. The numbers of members of VSLAs who participated in the meetings were 85 in Kenya, 59 in Rwanda and 81 in Tanzania.

Visits were also made to markets in the three countries to meet with Jiko (stove) manufacturers, as well as to assess the potential of engaging women who are not part of VSLAs but are already well established within the village market structure. The purpose was to assess the women’s interest in being part of the distribution chain by adding improved cookstoves and solar lanterns to their products. Furthermore, trips were made to prominent supermarkets to establish if they sell improved cookstoves and solar lanterns.


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4 OVERVIEW OF CLEAN ENERGY SECTOR AND RENEWABLE

ENERGY PROGRAMS

Currently, over 81% of the people in the East African Community countries (which include Kenya, Rwanda and Tanzania, as well as Uganda and Burundi) live without access to modern energy services. Most of them burn traditional biomass fuels using open three-stone stoves which expose the users to health hazards from indoor smoke and fire hazards, and also — due to their inefficiency — contribute to rapid deforestation. In all the countries, biomass is the dominant cooking and heating fuel — accounting for up to 96% of energy consumption in some countries (EAC, 2009).

4.1 Kenya Energy sector overview

Kenya has a population of 40 million in 47 counties, and is approximately 580 square kilometers, with Uganda, Sudan, Ethiopia, Somalia and Tanzania as neighbors. The Kenyan energy policy has evolved through sessional papers, regulations and Acts of Parliament. The Energy Regulatory Commission (ERC) is mandated by the Energy Act, 2006 to carry out several functions, including promoting renewable energy and protecting the interests of consumers, investors and other stakeholders. Other institutions created under the Act were the Rural Electrification Authority (REA) and the Energy Tribunal.

In Kenya, fuelwood is widely consumed for cooking. A Comprehensive Study and Analysis on Energy Consumption Patterns in Kenya, conducted by The Kenya Institute for Public Policy Research (KIPPR) showed that about 70% of the consumers use biomass while 30% use other fuels. Analysis of fuel types by urban and rural areas shows that the most popular fuel types in terms of their various uses are: kerosene (80%), followed by charcoal (60%), fuelwood (55%), electricity (37%) and LPG (21%) in that order. The usage of fuelwood, charcoal and kerosene in rural areas is higher than in urban areas, while the use of LPG and electricity in the rural areas is lower. While the lower prevalence of electricity use in rural areas can be attributed to lack of connectivity, lower LPG use can be attributed to lack of access and information. The study also showed kerosene to be mostly used for lighting (52%) while biomass was widely used for cooking (60%). The survey data indicated that users of charcoal and fuelwood in Nairobi have to travel on average 0.59 and 6.44 kilometers respectively to access the fuel they need. Cost of installation was the most cited reason for not using LPG, electricity and solar energy sources, with most households classified as lower income groups not utilizing these fuels. The energy budget shares for households differed across the provinces, fuels used and locations (rural or urban). Fuelwood had the highest energy budget share on average for both rural (11.6 %) and urban (9.34 %) areas (KIPPR, 2010).

The usage of fuel types by various income categories reveals that the use of crop residues, kerosene and fuelwood declines with a rise in income. However, the trend for use of charcoal, electricity, biogas and solar is reversed. The use of these fuels increases with rises in income. The national household electricity connection rate in Kenya was estimated to be 28.9% in 2010. Connection to the electricity grid varied across provinces, with Nairobi having the highest connection (53.47% of total households). Central Province was second with 42.4% while the North Eastern and Western Provinces had the lowest connection rates, 14.5% and 14.7% respectively (KIPPR, 2010).

During the development of the Kenya Energy Policy (still in the draft form), households were asked if they are willing to pay to meet the cost of improving the quality, reliability and efficiency of energy products and services in order to ensure zero complaints. Majority of households indicated that they were not willing to pay for improved quality of products and energy services. Out of the entire sample, more households were willing to pay more for electricity (13.7%), kerosene (23.5%) and charcoal (18.0%) improved services compared to the other fuel services. 9.8% of households supported paying more for fuelwood. On petroleum related products, 94%, 99% and 99% indicated unwillingness to pay for better LPG, lubricants and other petroleum products (KIPPR, , 2010).

4.1.1 Kenya Energy Policy

The Kenya Energy Policy acknowledges that the supply-demand imbalance in the use of biomass has a negative environmental impact in the form of deforestation. It has been established that charcoal production leads to the depletion of woodlands in Kenya at the rate of 0.5 hectares per year. Open burning of solid fuels leads to increased indoor air pollution which causes upper respiratory tract infections. The challenge is to move consumers up the energy ladder. Renewable energy has the potential to enhance energy security, mitigate


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climate change, generate income, create employment and generate foreign exchange savings. The overall objective of the energy policy is to ensure affordable, sustainable and reliable supply to meet national and county development needs, while protecting and conserving the environment (Republic of Kenya, 2012).

The following short term actions, that address the household energy situation, will be implemented in order to achieve the goals of the Energy Policy. Only the short term actions are referred to as they have a direct implication on the 3-year wPOWER program.

Short Term 2012-2016 Kenya Energy Policy Measures

Implement measures aimed at facilitating consumers to move up the energy ladder.

Support and promote the uptake of renewable energy technologies which are more environmental friendly.

Roll out a program to distribute solar lanterns to substitute for kerosene in lighting rural areas, poor peri-urban and urban settlements.

Create awareness on the potential opportunities and economic benefits offered by solar power technologies.

Facilitate private sector participation in production, conversion, distribution, supply and use of biomass energy through public/private partnerships and other initiatives.

Promote inter-fuel substitution to reduce the over reliance on fuelwood.

Promote the use of biomass briquettes as alternatives to fuelwood and kerosene in cooking, water heating and steam generation (Republic of Kenya, 2012).

4.2 Rwanda Energy sector overview

Rwanda is a landlocked country situated in central Africa, with a population of approximately 12 million. The country is approximately 26,000 square kilometers, and has five volcanoes, twenty-three lakes, and numerous rivers, some forming the source of the Nile. Rwanda shares borders with Uganda to the north, Tanzania to the east, Burundi to the south and the Democratic Republic of Congo to the west.

In Rwanda, biomass represents 85% of primary energy use, and electricity accounts for only 4%. Petroleum products make up the rest. Rwanda has installed generation capacity of about 100 MW, and only 15% of households are connected to the grid (Isumbingabo, 2012).

The Government of Rwanda has in place a National Energy Policy 2008-2012, which is an update of the 2004 Energy Policy statement. The 2008 update had a greater focus on household energy requirements and gender dimensions and also reflected the latest developments in methane and renewable, and their environmental implications. The Rwanda Government recognizes that the household sector constitutes the largest share of total primary energy consumption and is thus a major focus of energy policy. The policy for household energy is oriented to addressing poverty in order to:

Ensure reliable supplies of energy at the household level by improving the supply of affordable sources of energy (with a primary focus on energy for cooking), this being targeted particularly at low income households.

Offer training and improved stoves to increase efficiency in the use of biomass resources, recognizing that biomass will remain a dominant source of energy, especially in the rural areas, for the foreseeable future.

Target provision of energy to productive activities such as home-based industries in order to directly raise household incomes.

Promote alternative forms of energy for household use, informing women in particular, on energy source and technology choices in order to reduce the time burden and the health risks for women


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associated with current biomass energy usage – alternatives are also to include expensive options for higher income households, notably LPG.

Ensure that new technologies meet the highest health and safety standards – this applying in particular to LPG and kerosene stoves where some designs have been shown in other countries to be markedly safer than the stoves presently being marketed in Rwanda.

The updated policy is accompanied by the National Energy Strategy covering the period 2008-2020. A biomass energy strategy is included in the National Energy Strategy and it aims to:

Produce more biomass through better management of plantations and removal of restrictions on cutting and transport of fuelwood and charcoal (except where the material originates from natural woodland).

Save biomass through more efficient charcoal production and improved stoves (for both fuelwood and charcoal). Improved stoves are seen as a practical and affordable way of reducing fuelwood and charcoal use and reducing health problems associated with traditional cooking methods. In the rural areas, a sustainable approach has been adopted to train householders in the construction of mud stoves which can significantly reduce the use of fuelwood and produce much less smoke. More than 50% of households in Rwanda owned an improved stove in 2008.

Substitute biomass with other sources of energy (such as LPG and kerosene) using pressure stoves, and the use of peat and papyrus for institutions and (semi) industrial applications.

Promote small household PV systems as a relatively inexpensive way of giving households at least minimal electricity access e.g. for lighting, radios, TV (www.euei-pdf.org).

In July 2011 Rwanda enacted the Electricity Law. Key principles of the Electricity Law relevant to the wPOWER program are:

Develop power supply for the country’s economic and social development

Maximize use of indigenous energy resources to meet Rwanda’s long-term development plans

Improve energy access

Strengthen the capacity of public sector agencies and their ability to engage with the private sector

Promote efficient utilization of energy resources

Promote new and renewable energy technologies through enabling frameworks.

Rwanda presently has about 44.8 MW of mini and small hydropower plants in operation. The potential for hydro power generation is estimated to be more than 700 MW. The government plans to develop 300MW (4 x 75 MW) of geothermal power by 2017. There is potentially 55 billion cubic meters of methane gas dissolved in the bottom layers of Lake Kivu, which could support 700MW of power generation for about 55 years. A Peat Master Plan indicates an estimated reserve of 155 million tons of dry peat spread over about 50,000 hectares. Rwanda plans to develop its peat resources to generate about 200MW of power by 2017. Rwanda is characterized by Savannah climate with solar radiation intensity approximately equal to 5kWh/m2/day and peak sun hours of approximately 5 hours per day (Uwamahoro, 2012).

4.2.1 Rwanda’s Biomass Energy Strategy

Following a request from the Ministry of Infrastructure of Rwanda, the European Union Energy Initiative – Partnership Dialogue Facility supported the development of a national Biomass Energy Strategy (BEST) in 2009 with a particular focus on improvements to the charcoal supply chain. The goal of the strategy is to ensure a more sustainable supply of biomass energy (e.g. fuelwood and charcoal) and to promote access to modern fuels as well as to efficient biomass combustion technologies for households and small enterprises. A final strategy has been adopted and is being implemented (EUEI website). Rwanda BEST Strategies relevant to the wPOWER program are:

Increase energy use efficiency. The expected result is that less energy will be needed for cooking than today.


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Develop the institutional capacity of government organizations (concerned ministries, specialized agencies, local authorities) to deal with biomass in the short and medium term future on an equal footing as gas, petroleum fuels, and electricity (EUEI website).

The Ministry of Infrastructure has primary responsibility for setting the overall strategy for the future development of the Rwanda energy sector, including the electricity sub-sector. The Ministry also takes the lead in the new and renewables sub-sector. The Energy, Water and Sanitation Authority (EWSA) is a company that distributes power and water in Rwanda. EWSA has been in existence since 1976 and is responsible for coordination of all activities related to programs aimed at development and exploitation of energy sources.

4.3 Tanzania Energy sector overview

Tanzania had an estimated population of 44.9 million in 2012. The majority of Tanzanians (75%) live in rural areas. Despite economic progress made, this has not translated into a corresponding reduction in poverty and the absolute number of poor people is estimated to have increased by 1.3 million (The United Republic of Tanzania, 2013).

Energy consumption in Tanzania is among the lowest in the world. Much of the Tanzanian population (80%) is dependent on biomass and charcoal for cooking. Electricity is available to less than one-fifth of the population, which makes Tanzania one of the African countries most severely deprived of access to modern energy services. Electricity demand in the country is increasing rapidly mainly due to accelerated productive investments, increasing population, and expanded access. There is also significant suppressed demand, partly met by private diesel generators. The Power System Master Plan (2010–2035) anticipates that Tanzania will increase electrification status from 18.4% to at least 75% by 2035, with demand from connected customers increasing significantly as Tanzania becomes a middle income country (The United Republic of Tanzania, 2013).

Charcoal made from wood is the single largest source of household energy in urban areas with about half the annual consumption occurring in Dar es Salaam. Total primary energy consumption is 0.45 tons of oil equivalents (toe) per capita, including biomass and waste which is principally used in the residential sector for cooking. Most of the energy is used in the residential sector, and the vast majority of it is biomass and agricultural waste. Eighty percent of the biomass is used in the residential sector for cooking (The United Republic of Tanzania, 2013).

The Government of Tanzania developed an energy policy in 20032 to address the high cost of commercial

energy and the related appliances for households as well as energy demand and a growing household market. Related policy statements covering these issues are:

Encourage efficient end-use technologies and good household practices.

Encourage wider application of alternative sources of energy for cooking, heating, cooling, lighting and other applications.

Ensure safe utilization of household energy appliances through regulation of safety standards The (United Republic of Tanzania, 2003).

The Ministry of Energy and Minerals, with support from the European Union Energy Initiative – Partnership Dialogue Facility, is currently developing a National Biomass Energy Strategy (BEST) with a particular focus on sustainable utilization of biomass fuels, including charcoal and fuelwood.

The Rural Energy Agency (REA) is the leading agency responsible for rural electrification as well as supporting the development of renewable energy to supply energy to rural communities. REA, which became operational in 2007, is an autonomous body under the Ministry of Energy and Minerals; it promotes and facilitates improved access to modern energy services in rural areas of mainland Tanzania. REA is the implementing agency for a number of donor-financed projects. Non-governmental organizations working in the area of energy include The Tanzanian Renewable Energy Association, Tanzania Traditional Energy Development and Environment Organisation (TATEDO), Tanzania Engineering and Manufacturing Design Organization, WODSTA (efficient stoves promotion), Solar Innovations of Tanzania, AMKA Trust, and CARE-Tanzania. The Rural Energy Fund, with budget support from the government, a surcharge on grid electricity sales, and contributions from

2 This policy is currently under review.


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development partners, co-finances rural and renewable energy electrification schemes implemented by TANESCO and the private sector. The Medium Term Strategic Plan (2012-2016) and the Power Sector Master Plan reinforce the commitment towards collaboration with and encouragement of the private sector in development of the energy sector using different renewable and fossil energy sources to ensure energy security in the country (The United Republic of Tanzania, 2013).

4.4 Programs Similar to wPOWER

This section presents programs that show current efforts to empower women through access to clean energy technologies and fuels. The fact that there are global organizations working in this area, such as the World Bank, indicates that access to clean energy is recognized as a major input in poverty reduction, as well as reducing indoor air pollution resulting from fuelwood use and kerosene lamps. The TATEDO, DEEP, SCODE and Solar Sister programs show how working with women leads to poverty reduction at the household level as women become energy entrepreneurs. The importance of enabling women to acquire loans to establish energy businesses is shown by some of these programs. The programs also show that women can become part of the energy value chain, not just as consumers but also as distributors and retailers. CARE’s wPOWER program also aims to achieve these goals.

4.5 SCODE – Kenya

The Sustainable Community Development Services (SCODE) is a Kenyan grassroots community development organization whose mission is to enable people in Kenya, especially the poor, to improve their quality of life by adopting technologies and approaches that are environment-friendly and contribute to sustainable development. SCODE recognizes a need to ensure that investments in energy projects are more effective and have a higher development impact. With a specific focus on mainstreaming gender in the Improved Cook Stoves Dissemination and Enterprise Development project, and within the organization, the project aims at achieving an improved quality of life of rural men and women.

SCODE counts the numbers of ICS entrepreneurs and users in the Central and Rift Valley provinces of Kenya, and improvements in the organization’s performance in planning and implementing renewable energy technology projects, as indicators of its ultimate goal. Specific objectives are:

To increase the participation of men and women in production and distribution of ICSs.

To increase the benefits of ICSs to men and women ICS entrepreneurs and users.

To build the capacity of SCODE to mainstream gender in ICS and other renewable energy technology projects.

SCODE’s gender mainstreaming is not implemented as a stand-alone activity, but rather integrated into its ongoing work (such as the ICS dissemination and enterprise development project), as well as into the organization’s systems, structures and operations. In the ICS project, gender mainstreaming is implemented along the entire ICS value chain of production in order to enhance gender equity in participation and sharing of benefits among ICS producers, retailers, installers, artisans (who do stove fabrication/assembling) and end users through awareness/sensitization workshops, training and demonstrations. Meanwhile a review of the organization’s policies, logical frameworks and evaluation plans has promoted gender inclusiveness. With support from ENERGIA international, the gender mainstreaming has been implemented by SCODE staff, an advisory group, whose members are drawn from energy and gender specialists in the country and a gender consultant, incorporating views and ideas from partners and the target population – the key project beneficiaries (www.scode.co.ke).

4.6 TATEDO – Tanzania

TATEDO has created a ‘for-profit’ arm, SEECO (Sustainable Energy Enterprises Company), which manufactures and sells cookstoves and baking ovens. From 2000 through 20011, TATEDO sold 2,270,520 fuel-efficient cookstoves (2,133,876 improved charcoal stoves and 136,644 improved fuelwood stoves), 608,692 improved charcoal ovens, and 6,660 solar lanterns, and installed 218 solar dryers (TATEDO, 2011)


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Women’s engagement with SEECO is primarily as end users. They also work in the SEECO factory and serve as individual technicians who manufacture the stoves and ovens. Women among TATEDO’s staff serve as trainers on the use of the solar dryers and baking ovens, and on business skills. TATEDO’s technology products have allowed women to be more productive in their existing income-generating activities (e.g., baking bread for sale). Additionally, the solar dryers (fruit & herbs) and baking ovens, in particular, provide women with opportunities to engage in new entrepreneurial work (Kirrin, 2012).

4.7 Developing Energy Enterprises Project (DEEP) – Tanzania, Kenya and

Uganda

The Developing Energy Enterprises Project, supported by the Global Village Energy Partnership (GVEP), was started in 2008 as an innovative initiative supporting micro and small energy enterprises (MSEEs) to grow and formalize their businesses in order to create sustainable avenues for clean energy access, primarily in rural

communities3. Most of these enterprises are non-registered (informal) businesses; owners have little formal

education (usually less than secondary school level) and lack entrepreneurial and business know-how. The main technologies covered by DEEP are improved cookstoves, solar and briquettes.

There are country level differences with regard to types of energy products and services sold or provided by the DEEP entrepreneurs. For example, almost 59% of entrepreneurs in Kenya, 35% in Tanzania and 36% in Uganda deal with ICS products. Uganda has the highest number of briquette entrepreneurs (41%). Tanzanian entrepreneurs are more involved in solar technology (51%), as opposed to 16% in Kenya and 15% in Uganda. Female entrepreneurs are generally less mobile than male entrepreneurs. As a result men have a higher level of access to information and greater ability to source products for sale. Female entrepreneurs tend to be engaged in businesses that do not need a high level of capital, use low technology, and deal in products that can sell to immediate markets. The surprising result to emerge from the analysis is in solar technology businesses. Despite being an area dominated by men, women have secured loans in equal numbers to men and on average have borrowed more. Clearly some women are able to succeed in this male-dominated preserve. The women who took these loans are involved in selling both phone charging services and solar lanterns; the men are involved mainly in providing phone charging services. These women, who are all in Uganda, seem particularly serious about their businesses (Kariuki, P. and Balla, P).

However, women entrepreneurs lack start-up (seed) capital, lack awareness of existing credit schemes, face high interest rates (i.e. some financial institutions charge up to 30% for solar loan products) and contend with lengthy and rigorous procedures for loan applications (even with loan guarantees). A high interest rate, coupled with a short repayment period, (typically 6 months) becomes a major constraint, forcing the entrepreneur to work almost round the clock to service the loan. Women’s loan applications are often rejected. This is attributed to the fact that most of the property acceptable as collateral belongs to men. Overall, they borrow less than male counterparts. Men access credit more easily, e.g. in terms of loan sizes and numbers. Nevertheless, with the right support, including appropriate training and support in business development, it is possible for women to grow many small energy businesses. Support services for women’s enterprises need to cover both financial and non-financial interventions to enhance the development and sustainability of their activities (Kariuki, P. and Balla, P).

At the end of the DEEP project in 2013, it had supported over 1000 MSEEs, 900 of which are active and delivering products and services to their communities; 38% of the businesses are led by women. As of December 2012, DEEP had 328 solar charging and solar PV entrepreneurs and 374 improved cookstoves entrepreneurs in East Africa. DEEP has created approximately 3000 jobs, and reached over four million beneficiaries with energy products and services such as improved cookstoves, briquettes, solar phone charging and solar lighting (GVEP, 2013).

4.8 Solar Sister – Uganda, Rwanda and South Sudan

Solar Sister is a social enterprise that uses a direct marketing system made up of Solar Sister Entrepreneurs (SSEs) who are the primary marketers and sales agents of solar lanterns and other solar technologies in rural areas. Solar Sister has an explicit focus on women in every stage of the technology supply chain (except for production), and its organizational mandate is to engage and empower women. A Solar Sister is an integral

3 DEEP ended in early 2013


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part of the supply chain, and sources, distributes and markets the solar products. The products are either fully manufactured and assembled abroad (e.g. by the d.light company) or manufactured abroad and assembled in a local warehouse in Uganda (e.g. by Barefoot Power). The product distribution mechanism is centered on women’s existing networks.

Key features of the Solar Sisters model are summarized as follows:

Women use their networks of family, friends and neighbors to provide a distribution channel to rural and hard-to-reach customers.

Multiple products are offered to customers, based on quality and affordability.

Solar Sister provides a ‘business in a bag' start-up kit with inventory of portable solar lamps and mobile phone chargers, plus training and marketing support.

Marketing support, includes stickers, posters, t-shirts and support for launch events to showcase products at high visibility locations.

Solar Sister Entrepreneurs sell on a consignment basis: women do not have to pay for the inventory until they sell it, and then they earn a commission on each sale.

Private sales arrangements are made through which lamps may be bartered for non-cash assets.

Each Solar Sister Entrepreneur progresses at her own pace.

When Solar Sister Entrepreneurs reach a level of USD300 in stock advances, they are linked to a local micro finance institution.

Solar Sister manages consignment levels: The program does not advance 100 lamps to a Solar Sister Entrepreneur when they know only three will be sold (www.solarsister.org).

4.8.1 Global Alliance for Clean Cookstoves

The Global Alliance for Clean Cookstoves is a public-private initiative that aims to save lives, improve livelihoods, empower women, and protect the environment by creating a thriving global market for clean and efficient household cooking solutions. The Alliance recognizes that women are disproportionately impacted by the negative impacts of cooking on open fires and with traditional cookstoves, and also that women play a crucial role in the adoption and use of clean cooking solutions because of their responsibilities as cooks and managers of their households. Women can play a unique role within the improved cookstove and fuel value chains, as they often excel in entrepreneurial activities and can leverage their existing networks for distribution, marketing, and sales. The Alliance has included the empowerment of women as an explicit goal in its mission statement. Alliance activities are meant to support and enhance projects on the ground, as well as develop tools and resources that can be utilized and replicated by stakeholders around the world (www.cleancookstoves.org).

4.9 Lighting Africa

Lighting Africa is a joint International Finance Corporation and World Bank program that works towards improving access to better lighting in areas not yet connected to the electricity grid. Lighting Africa catalyzes and accelerates the development of sustainable markets for affordable, modern off-grid lighting solutions for low-income households and micro enterprises across the continent. To date, Lighting Africa and its partners have made it possible for more than 6.9 million people in Africa to access clean, safe lighting.

The Lighting Africa program works with off-grid lighting products or systems that are stand-alone, rechargeable and can be installed, assembled and used easily without requiring assistance from a technician. These products are affordable, typically costing less than USD100, some retailing at USD10 or less (www.lightingafrica.org). All the lighting products promoted within the wPOWER program meet the Lighting Africa standards and price range requirements

http://www.cleancookstoves.org/

http://www.lightingafrica.org/about-us/program-results-.html

http://www.lightingafrica.org/


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4.10 Africa Clean Cooking Energy Solutions (ACCES)

The World Bank has launched the Africa Clean Cooking Energy Solutions (ACCES) initiative, which aims to promote enterprise-based, large-scale dissemination and adoption of clean cooking solutions in Sub-Saharan Africa (SSA). By increasing access to modern technologies and cleaner fuels, the initiative seeks to alleviate the adverse health, environment, and socio-economic impacts of traditional cooking practices in SSA. ACCES’ vision is to scale up clean cooking and fuel technologies through a consultative, integrated, enterprise-based approach to regional development.

ACCES aims to:

Catalyze sector development through promotion of enterprise-based approaches.

Promote differentiated strategies to make clean fuels and technologies accessible and affordable.

Maintain a technology and fuel neutral platform, promoting efficient biomass stoves while supporting the transition to clean fuels.

Integrate gender considerations into clean cooking strategies and interventions.

Align with and build on existing country strategies, programs and partnerships.

Implementation of ACCES activities, including establishing the relevant supporting pillars in the countries and operationalizing support to enterprises, promoters, consumers, and policy makers, will commence in 2013. The World Bank’s Africa Energy Group (AFTEG) and Energy Sector Management Assistance Program (ESMAP) implement ACCES in close coordination, and in strategic partnership with the Global Alliance for Clean Cookstoves and the UN Sustainable Energy for All initiative (www.worldbank.org).


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Profiling Study Findings


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5 COOKING ENERGY FUELS AND TECHNOLOGIES:

TECHNOLOGY AND CONSUMER PROFILING

This section presents an inventory of existing cooking fuels and technologies used, as well as cost of the fuels, as established during the field work in the three countries. Technology preferences of the wPOWER target beneficiaries, as well as those of Village Agents (VAs) and prospective women entrepreneurs are also presented. Household participants were asked which cooking technologies they would prefer to use, bearing in mind the challenges they face with the current, mainly traditional, technologies and fuels. The VAs who had already sold improved cookstoves in the initial stages of the wPOWER program were also asked about the feedback they have received regarding the new technologies.

5.1 Kenya Cooking

Of the 71 household participants4 who answered questions on cooking, 49 identified fuelwood as their number one cooking fuel. The fuelwood is used together with the 3-stone stove. Charcoal is the second most used after fuelwood. It is used by 22 participants as the number one cooking fuel. The Upesi Jiko, Jua kali Jiko, Jiko Mar Taka, and Jikotosha stove models are used with charcoal. Kerosene is not commonly used for cooking, except for emergencies, such as when charcoal is wet due to rain, and when there is no fuelwood. Agricultural residues such as maize cobs are used for cooking where fuelwood is extremely scarce, such as in the Vihiga county. LPG is used by very few people for cooking.

For families that purchase fuelwood and charcoal, the following are examples of the costs and the time the fuels last:

Homa Bay: Fuelwood is generally free but some households have to purchase it, spending KES100 for fuelwood that lasts one week. Charcoal costs KES600 and lasts for 1 month.

Siaya: Fuelwood costs KES50 and lasts for two days (Fuelwood costs KES700 in Siaya Town). In the same area, charcoal costs KES150 and can last for 4-5 days.

Vihiga: 2 – 3 pieces of fuelwood of 1m length cost KES20 and this is enough to make 1 breakfast (lunch will cost KES60, dinner KES80’s worth of fuelwood).

The matrix below presents the cooking fuels and technologies used in the three counties visited.

Kenya Cooking Energy Technologies and Fuels Matrix

Fuel Cooking Device

Representative Cost of Fuel (monthly) in KES5

Representative Purchase Price of Technology

Challenges in Use

Fuelwood 3-stone 62800 (USD33) free Fuelwood takes a long time to burn when it is wet.

Some collection points are far.

Takes one week to dry if collected as live branches.

Produces too much smoke.

It is expensive.

It is weighed in small quantities which means households (HHs) have to spend a lot of money.

Not easy to find in both Siaya town and Vihiga county

4 Kenya VSLAs have, on average, 23 members per group. 5 1USD = 84 Kenya Shillings (KES) (www.oanda.com for period May and June 2013, i.e. the time during which this Study was conducted). 6 Siaya County: Fuelwood costs KES700 in Siaya Town.

http://www.oanda.com/


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Fuel Cooking Device

Representative Cost of Fuel (monthly) in KES5


Challenges in Use

Charcoal Upesi Jiko

Jua kali Jiko

Jiko MarTaka

71200 (USD14) Locally produced Jikos cost between KES200 – 350 from vendors and local markets. They can last for one month depending on usage, but not more than a year

Charcoal can cause carbon monoxide poisoning, i.e. it can cause suffocation if burnt in a poorly ventilated area.

It is expensive, and the price goes up during the wet season.

It is not easy to find and sometimes deliveries are missed and people have to go far to purchase the fuel.

Charcoal goes to waste if it is not all used in the Jiko

Many Jikos are heavy, weak and do not last for long, there is quick wear and tear and the shape is not uniform.

Kerosene 81400 (USD17) The poor cannot afford kerosene for cooking.

Agricultural residues such as maize cobs

3-stone free free Produces too much smoke.

LPG LPG is too expensive to acquire

5.2 Preferred Cooking Fuels and Technologies in Kenya

The following are the cooking fuel and technology preferences of the different participants.

1. Fuelwood – because it is easy to use and light, and takes a short time to fetch. It is free in some areas, portable and cooks several dishes at a time. (This response came from women residing in poorer areas where there was an abundance of fuelwood.)

2. LPG – as it lasts longer, is easy to use and cooks food quickly. 3. Kenya Power and Lighting Company electricity – but it is expensive 4. The Jiko Tosha (Envirofit stove) – as traditional Jikos consume a lot of fuelwood. 5. A Jiko that uses less charcoal, less fuelwood, does not break easily like the Upesi, is durable and easy

to handle. 6. Improved cookstoves – as they save time spent in fuelwood collection.

For those in the VSLAs who have come in contact with the wPOWER products the Envirofit M-5000 appears the most liked. A VA who has sold some of the stoves in Homa Bay attributed this to the price and design (aesthetics) of the stove. “Women like smart equipment and utensils” the VA said.

7 In Siaya Town charcoal costs KES150 and can last for 4-5 days (approximately KES300 for 1week). 8 1 litre of kerosene costs KES100 and lasts for 2 days in Vihiga.


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Jua Kali artisans in Kisumu produce many types of Jikos.

5.3 Rwanda Cooking

Six members of VSLAs9, representing three VSLA groups in the Kirehe District, stated that their households

use fuelwood for cooking, while one mentioned charcoal as the cooking fuel they use. The households use the fuelwood in the mud stove known as the Rondereza (below) that households construct for themselves. This combination of fuelwood and the mud stove technology is commonly used by many households in this district. Charcoal, used by very few, is used in the Imbabura charcoal Jiko.

9 Each VSLA group in Rwanda has on average 20 – 25 members.


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In Nyagatare, the 11 members of the Tuzamurane VSLA said their households use fuelwood for cooking. The 11 members of the Twitezimbere VSLA use crop residues (maize cobs, pea and bean shells) and grass. In the Nyagatare District, where members of the Twitezimbere VSLA reside, fuelwood is scarce and many people are forced to cook with grass, dry bean and pea plants, and maize cobs that they collect from their farms. The grass and bean / pea plants are used mainly in the mud stove, not the 3-stone stove. In general the Nyagatare households use the 3-stone and mud stoves for cooking.

The Nyagatare women sometimes request and receive fuelwood from farmers, but sometimes they have to work for the fuelwood, for instance by cutting grass for the calves, destumping, weeding, and cleaning kraals / removing cow dung. This fuelwood-for-work scenario takes approximately 8 hours, which means the women are gone from their homes for the whole day in search of fuelwood.

Many women in the two districts collect the fuelwood but many also purchase the fuelwood from people who own woodlots and sell in the communities. Woodlot owners sell from their homes and it takes hours to fetch fuelwood from the woodlots. A 1 meter bundle with 8 pieces of fuelwood costs about RWF500 and lasts for one day (making only lunch and dinner). A bicycle-bundle of fuelwood costs about RWF4000 and lasts two weeks, cooking 2 meals (lunch and dinner) per day.

Rwanda Cooking Energy technologies and Fuels Matrix

Fuel Cooking Device

Representative Cost of Fuel (monthly) in RWF10


Challenges in Use

Fuelwood 3-stone Mud Stove (Rondereza)

1115,000 (USD23) Free Free. Members of the households construct the mud stones themselves.

Sometimes there is shortage of fuelwood in Kirehe.

In Nyagatare women have to work for the fuelwood which takes the whole day.

Fuelwood produces a lot of smoke and the smoke can destroy the appetite as it gets into the cooking food.

The mud stove uses too much fuelwood, lasts about 10 years but has to be frequently maintained with mud.

The mud stove also requires constant attention in terms of blowing into the fire to get it started and keep it going.

Charcoal Scrap metal Jiko (Imbarura)

N/A Charcoal is expensive

It smokes

The Imbarura is not efficient.

Agricultural residues such as maize cobs

3-stone Free Free Crop residues and grass produce too much smoke, and ash gets into the food as one blows into the fire.

These crop residues take about 3 hours to obtain as farms are far from the households.

10 1USD = 642 Rwanda Francs (www.oanda.com for period May and June 2013, i.e. the time during which this Study was conducted). 11 A 1m bundle with 8 pieces of fuelwood costs about 500 RWF and lasts for one day (making only lunch and dinner) in Kirehe.



September 2013 20

Rondereza

5.4 Preferred Cooking Fuels and Technologies in Rwanda

1. An affordable stove that uses less fuelwood. Fuelwood is scarce in areas that were visited during this study, and even in areas where the fuelwood can be obtained, it takes the women the whole day to undertake this task, i.e. working for fuelwood in the farms. The Nyagatare District, has high usage of agriculture residue for cooking, e.g. dry bean and pea plants.

2. A stove that can be used outside (i.e. portable).

3. Efficient technologies that make life easier and expose users to less health and fire risks.

4. Charcoal stoves that do not produce smoke.

5.5 Tanzania Cooking

All the 10 household participants from Arusha region (Arumeru District) and 56 participants from the Manyara region (Babati District) stated that they use fuelwood for cooking with the 3-stone stove. As is the case in Kenya and Rwanda households above, fuelwood is the most commonly used cooking fuel, followed by charcoal. Kerosene is used only during emergencies, e.g. when there is no fuelwood or when the charcoal is

wet. The Jikolamchina12 (below) is the stove used with the kerosene, while metal Jikos are used with charcoal. Few people use LPG. In the Arumeru District, fuels such as cow dung and dry maize plants, in addition to fuelwood and charcoal, are used for cooking.

Fuelwood collection in the Babati District, Manyara Region, can take up to four hours. In the same area, fuelwood costs about TZS10,000, and charcoal TZS14,000 (enough for about one week). Charcoal is used with the metal / traditional Jiko (which lasts about 1 year and can be found at the Kisongo Market in Arusha). Charcoal is purchased from hawkers who move from house to house. In all the Arumeru communities, charcoal costs between TZS3000 – 4,000 and fuelwood costs TZS6,000 – 10,000. It can take up to six hours to fetch fuelwood in the Arumeru district in the areas where the Masaai communities reside.

12 Swahili translation for Chinese stove.


September 2013 21

Tanzania Cooking Energy technologies and Fuels Matrix

Fuel Cooking Device

Representative Cost of Fuel (monthly) in TZS13


Challenges in Use

Fuelwood 3-stone Mud stove

1440,000 (USD25) Free Fuelwood is expensive.

Collection points are far and it is risky to collect in conservation areas.

Fuelwood produces smoke.

Can take long to ignite.

The three stone is inefficient (see photo)

Charcoal Traditional Jiko

56,000 (USD35) Traditional Jiko common in many households, costs between TZS3500 and TZS5000 and lasts 1 - 2 years depending on usage.

Charcoal smokes, it is expensive, at times unavailable and illegal to produce in some areas.

Charcoal is difficult to ignite during rainy seasons.

The Jiko can burn children

The Jiko uses a lot of charcoal, it smokes, loses a lot of heat due to thin materials used, and it is not durable.

Kerosene Jikolamchina15 The kerosene stove produces too much smoke when it is switched off, forcing the user to take the stove outside.

Jikolamchina

13 1USD = 1600Tanzania Shillings (www.oanda.com for period May and June 2013, i.e. the time during which this Study was conducted) 14 In Babati District, fuelwood costs about TZS10,000 and charcoal TZS14,000, both lasting about one week.



September 2013 22

Mud-clad 3-stone stove

5.6 Preferred Cooking Fuels and Technologies in Tanzania

The Tanzania participants had the following preferences for cooking fuels and technologies:

1. A Jiko that uses both charcoal and fuelwood. This means the woman will be able to use the same stove with two different types of fuel, leading to cost savings on the stove itself. Another advantage of a combined stove is that fuelwood can be used if charcoal is not available, and vice versa.

2. LPG as it is quicker and easier to use although there are safety fears regarding this technology.

3. A Jiko that uses less charcoal and does not smoke.

4. Biogas for cooking – An organization demonstrated the use of biogas for cooking and built some stoves in a nearby village in the Arumeru District.

5. Cow dung for cooking as it is free. This came from a Masaai group in the Arumeru District.

6. Jikos that use agricultural residue.

7. Electricity.


September 2013 23

6 LIGHTING ENERGY FUELS AND TECHNOLOGIES:

TECHNOLOGY AND CONSUMER PROFILING

This section presents an inventory of existing lighting fuels and technologies and costs, established during the field work in the three countries. The preferences of the wPOWER target beneficiaries, as well as those of VAs and prospective women entrepreneurs are also presented. Household participants were asked which lighting technologies they would prefer to use, bearing in mind the challenges they face with the current, mainly traditional, technologies and fuels. The VAs who had already sold solar lanterns in the initial stages of the wPOWER program were asked about the feedback they have received regarding the new technologies.

6.1 Kenya Lighting

Kerosene is used by all the 99 Siaya, Vihiga and Homa Bay counties participants who took part in the household lighting focus group discussions. The kerosene is used together with tin lamp commonly known as hurricane lamp or kibatiri, and the glass lantern. One litre of kerosene costs KES100 and lasts for two days in Vihiga. The households use a mixture of lighting fuels in addition to kerosene, such as battery torches (which use dry cells), candles and in some very poor households, fuelwood. Many also use mobile phones for lighting, which have to be charged daily at a cost of approximately KES10. The mobile phones are used as if they were torches.

Kenya Lighting Energy Technologies and Fuels Matrix

Fuel Lighting Device

Representative Cost of Fuel

Challenges in Use

Kerosene Hurricane Lamp Glass lantern

161400 (USUSD17)

Kerosene is toxic and dirty.

It produces too much smoke, which makes clothes and the house dirty.

The smoke from the tin or hurricane lamp affects the eyes / chest, it has poor light quality, and school children cannot use it for reading as it is dirty and also makes their eyes itch.

Smoke from the hurricane lamp “makes nostrils black”.

Hurricane lamp is a fire hazard.

The lamp uses too much kerosene.

There is suspicion in Vihiga that vendors mix kerosene with other substances before sale to increase the volume17.

There is a shortage of kerosene at times caused by suppliers / vendors withholding supply in anticipation of price hikes.

Kerosene is not easy to find in Siaya, and prices keep rising.

Candles 18240 / USD3 Candles are dangerous if left on, and they are expensive to use on a daily basis.

Mobile phone

KES10 / USD0.12 A mobile phone has to be charged daily.

Electricity Electricity is prone to power cuts which can affect activities, and as a result some households in Vihiga are not interested in its usage.

16 1 litre of kerosene costs KES100 and last for two days in Vihiga. 17 This could be the reason for the itchy eyes. 18 Candles cost KES8 for 1 per day.


September 2013 24

6.1.1 Preferred Lighting Fuels and Technologies in Kenya

1. Solar lamps – as they are easy to use, and save money and effort.

2. A solar lantern that can provide light for the whole house.

3. A larger solar home system that can also operate a fridge, radio and other equipment.

4. Barefoot Power’s FireFly Mobile which also has a mobile phone charger, is the preferred lantern for those who have purchased it as it is portable, easy to use, affordable, looks smart and saves money. “There is no need to buy kerosene and batteries, or to charge mobile phone at a cost, once one owns the FireFly”, one woman said. Many of the FireFly users appreciate the fact that they no longer buy kerosene or pay to charge mobile phones.

5. Barefoot Power’s PowaPack Junior 2.5W is preferred by those using it and those with intentions to buy in future as it has two light bulbs that produce more light compared to the Fire Fly. PowaPack Junior also has a mobile phone charger, can provide light for more than one room and is affordable. One user who has acquired the PowaPack Junior prefers it as “it is very economical and has a good light spread, it is clean, saves on kerosene, can charge mobile phones, and provides light for school children to do homework”, she said

6.2 Rwanda Lighting

The seven representatives of households from Kirehe stated that they use electricity, kerosene lamps and torches for lighting. The 22 representatives of households in the Nyagatare Districts said they use kerosene (commonly known as petrol) with the locally made lamp, itodowa, battery torches, candles, and mobile phones for lighting. The kerosene, and dry cells for torches, are purchased from nearby boutiques / small shops and markets. The itodowa is made with locally recycled materials and is used together with the kerosene by the

majority of the households. The lantern with glass, which is imported, is also used by some households.

Itodowas for sale at the market in Kirehe

The Itodowa costs between RWF150 and RWF200 and can easily be found in local markets. A jerry-can-lid (from a 20 liter water container) of kerosene for the Itodowa costs RWF50, and lasts one night. A Fanta (soda) bottle, which is less than half a liter costs RWF400 and lasts 1 week. In the communities where the Twitezimbere VSLA members live, in the Nyagatare district, kerosene can be bought for less than RWF100


September 2013 25

and lasts two days. Electricity in Kirehe costs RWF1000 for 6KWh, but households have to pay RWF500 each month for renting the power meter.

Rwanda Lighting Energy Technologies and Fuels Matrix

Fuel Lighting Device Representative Cost of Fuel


Challenges in Use

Kerosene Itodowa Lamp Glass lantern

19RWF1600 / USD2

RWF200 / USD0.31

Kerosene is expensive and lasts for a short period of time in the Itodowa.

Kerosene produces too smoke which is harmful to the respiratory system.

The Itodowa is a fire hazard.

It smokes and is easily blown out by wind.

The Itodowa rusts and has to be replaced every few months.

6.3 Preferred Lighting Fuels and Technologies in Rwanda

Preferred lighting fuels and technologies as stated by the Kirehe and Nyagatare Districts participants are:

1. Lanterns that can be charged with electricity and can last at least three days.

2. Torches, as they do not smoke.

3. A lamp that gives adequate light for school children to use for studying, does not smoke, is durable and one that can be used when milking cattle, i.e. a portable lamp.

4. Electricity.

6.4 Tanzania Lighting

The lighting fuels and technologies used in both Arumeru and Babati Districts, as stated by 66 participants, are kerosene, the Kibatari (known as hurricane lamp in Kenya and Itodowa in Rwanda), the glass lantern, candles, dry cells (torch). Electricity was said to be used by very few households. The kerosene, candles, torches and dry cells are purchased from local shops and this task takes less than an hour. Kerosene, purchased from petrol stations, costs about TZS9,000, a quantity that lasts about a week. Candles are used by those with electricity during power cuts. Dry cells cost 1200, last about a week and are used only for emergency. Some communities are near the main market in Kisongo, Arumeru, and spend just hours to purchase lighting and cooking technologies. Electricity costs 20,000 a week for units.

In the Arumeru District, Arusha, kerosene costs TZS2500 – 3300 for 1 to 1.5 liters, candle less than TZS500 each and dry cells about TZS600 each. One Masaai group uses a glass Kibatari which they say uses less kerosene as it does not become heated like the metal Kibatari. The glass Kibatari can be made at home, or purchased from the market for TZS1000.

19 In Kirehe, Rwanda, a Fanta bottle (soda), which is less than half a liter costs 400 RWF and lasts 1 week.


September 2013 26

Common lighting technologies in rural Tanzania

Metal and glass Kibatiri

Tanzania Lighting Energy technologies and Fuels Matrix

Fuel Lighting Device Representative Cost of Fuel (monthly) in TZS


Challenges in Use

Kerosene Kibatari (kerosene lamp) Glass lantern

2013,200 (US USD8)

1000 Kerosene is expensive, it is explosive, a fire hazard and has to be kept away from children.

The Kibatari is very smoky, it can explode, produces poor quality light and is easily blown out by wind.

The Kibatari is not good for children to study with, as the smoke it produces can hurt their eyes.

The glass lantern is expensive, can explode if air gets in, and glass has to be replaced if it breaks.

20 In Arumeru district kerosene costs 2500 – 3300 for 1 to 1.5 liters, candles less than 500 each and dry cells about 600 each (usually two are used), all lasting about a week.


September 2013 27

Fuel Lighting Device Representative Cost of Fuel (monthly) in TZS


Challenges in Use

Candles 2000 (USD1) Candles are a fire hazard.

Dry Cells Torch 4800 (USD3) The dry cells are safe but expensive.

6.5 Preferred Lighting Fuels and Technologies in Tanzania

1. Technologies that are less smoky.

2. Solar for lighting.

3. Solar lamps that charge mobile phones.

4. A solar system that supports more and larger equipment, e.g. TV, fridge.


September 2013 28

7 MARKET POTENTIAL FOR IMPROVED COOKSTOVES AND

SOLAR LANTERNS

This section assesses the market potential for improved cookstoves and solar lanterns by first presenting the clean energy suppliers involved in the wPOWER program and the products being distributed by the suppliers in the three countries. The potential for a clean energy market by members of VSLAs is also shown based on the focus group discussions and key informant interviews.

7.1 Suppliers and Distributors of Clean Energy Technologies

Information on the suppliers who have an arrangement with CARE to become part of the solar lanterns and improved cookstoves distribution channel in VSLA communities is provided below. The products that are part of the wPOWER program are also listed.

7.1.1 EzyLife, Kenya

Ezylife Kenya is the local franchise holder of the Ezylife brand under license from The Paradigm Project, a US-based social enterprise company. Ezylife took over the Kenyan operations of The Paradigm Project in November 2012. Ezylife Kenya (ELK), a 100% locally-owned company, is currently the largest private sector player in the improved fuelwood cookstove market segment in Kenya. The Paradigm Project, whose Kenyan operations Ezylife Kenya has taken over, started its work in Kenya in September 2010 and by the time of the transition to EzyLife in December 2012, had sold close to 70,000 efficient fuelwood cookstoves in the market. EzyLife sells 5000 – 7000 stoves per month.

ELK distributes both improved fuelwood and charcoal cookstoves. The company has three types of fuelwood cookstoves (JikoPoa, Envirofit M5000 and EzyStove) and one type of charcoal cookstove – the Envirofit M5200. ELK is working to expand the charcoal product range by introducing three new products in the near future. The JikoPoa has been on the market for three years, the Envirofit M5000 is an upgrade of the G3300 which has been sold for over two years and the Ezystove had been in the market for about seven months (at the time of this Study), though it had been tested for over two years prior to its introduction in the market. The prices for the products are shown in the table below:

Product name Cost of product to Cost in Kenya Shillings 21

Ezystove

Price from ELK to franchisee 2,215.00

Price from franchisee to VA 2,350.00

Price from VA to HH 2,500.00 (USD30)

M5000




JikoPoa




CH5200




21 1USD = 84 Kenya Shillings (www.oanda.com for period May and June 2013, i.e. the time during which this Study was conducted)



September 2013 29

EzyStove

M5000 fuelwood stove (top left), M5200 charcoal stove (bottom left)

ELK’s strategy used to sell to poor customers: Arrangements are made to split the payment into 2 to 4

installments where feasible.

Replacement Policy: ELK has a warranty policy – if a customer comes across a manufacturing defect, she takes the stove back to the Village Agent /franchisee who sold her the stove. The Village Agent /franchisee assesses the problem and if it is a usage problem, the customer is retrained. If the Village Agent /franchisee concludes that the problem is with the stove, she duly informs ELK and a replacement is authorized, which is made in the next delivery to the region.


September 2013 30

Distribution channels: ELK mainly sells through organized women’s groups and community based

organizations. 80% of the stoves have been sold through these groups.

Customers: ELK’s customers are mostly women (close to 100%). 30 day credit terms are normally used.

Arrangements with CARE: EziLife Kenya has an MoU with CARE for the wPOWER program that came into effect in February 2013. EzyLife appears committed to the project and is already discussing with CARE how to address the distribution challenges currently faced in remote areas. An idea they have is to provide motorcycles to Village Agents which they will use and only be allowed to own after a period of time. However, EzyLife wants CARE to pay for these motorcycles. This discussion should be continued in order to identify innovative solutions for delivery of Ezylife products to members of VSLAs residing in hard to reach areas.

7.1.2 Barefoot Power, Kenya

Barefoot Kenya distributes micro solar lighting systems which can power a radio, plus 1-5 lights and charge most common mobile phones. Products include the Firefly Mobile, Powapack Junior 2.5W and Powapack 5W. Recommended selling prices are:

Barefoot Product Bulk Price (120+ units Firefly, 40+ units PowaPack)

Wholesale Price (12 units to 119 Firefly, 4 units to 39 units PowaPack)

Recommended Retail Price (<12 units Firefly, < 4 units PowaPack)

Barefoot FireFly Mobile KES1650 KES1900 KES2280 (USD27)

PowaPack Junior Matrix KES3900 KES4600 KES5550 (USD66)

PowaPack 5W KES7700 KES9100 KES10,950 (USD130)

Barefoot Power Kenya has been operating since 2009 and has distributed approximately 1,800 solar lighting units since the inception of the wPOWER program in 2012.

FireFly Mobile


September 2013 31

Barefoot Power Kenya’s strategies used to sell to poor customers: Barefoot Power’s main objective is to provide lighting and phone charging solutions to people at the bottom of the pyramid and as a result uses subsidized prices.

Distribution channels: Regional distributors, NGOs, community based organizations, organized groups,

firms such as Unilever, MFIs, entrepreneurs, etc.

Replacement Policy: All products carry a one year warranty.

Customers: Both women and men. Sales are mainly cash with few cases on pre-arranged credit terms.

Arrangements with CARE: Barefoot Power Kenya has had an MoU with CARE since February 2013. Their products appear popular among VSLAs, especially the FireFly mobile which customers see as affordable and efficient.

7.1.3 EzyLIfe, Rwanda

EzyLife was started by the US-based Paradigm Project, and EzyLife Rwanda is operating as a franchisee, with sales of the Ezystove in Rwanda since February 2013. The company has so far distributed 50 units per month on average for market trials (not commercial sales), and has sold 180 stoves in Rwanda to date. EzyStove is a fuelwood burning stove that costs RWF14,500 (bulk price) and RWF16,800 (retail).

EzyLife Rwanda’s strategy used to sell to poor customers: Cooperatives in the rural areas will be targeted and village agents identified and trained to be marketing and sales agents.

Distribution channels: Table banking groups and VSLAs.

Replacement Policy: 1 year for EzyStove, 2 years for Sunking22: A customer contacts their agent (VA, saving group, NGO, etc.) and the agent contacts EzyLife. EzyLife then evaluates the use of the product to ensure no negligence or misuse has occurred then approves replacement.

Customers: Mostly women. Other customers are NGOs such as Delagwa. Customers pay cash. Credit is also available with equal installments over two months. Repayment performance is good due to working relationship with financing partners who collect the cash payments.

Arrangements with CARE: A final MoU between Ezylife and CARE is currently being discussed. EzyLife Rwanda, like its counterpart in Kenya, is committed to the wPOWER program. The company is already working on promotional attire to be given to the VAs (sales agents) who will be distributing the products within the VSLA network.

7.2 ToughStuff, Rwanda

ToughStuff International is a socially-driven enterprise that sells a modular range of low-cost solar products for off-grid customers. The products are developed in the United Kingdom. The first version of the ToughStuff solar lantern was piloted in Rwanda in a CARE project, within Tubora, World Vision, Compassion, Cooperatives and other partners in 2010. Monthly sales of the ToughStuff solar lantern, without big orders, are approximately 1500. Forty thousand kits (includes lantern, LED lamp and charger) have been sold since establishment of the Company. The ToughStuff solar lantern costs USD21 (bulk price) and USD28 (retail price). The lantern includes a:

ToughStuff Solar Panel: a mini-solar panel (1.5w, 5.6v), with a 10 year life span. The panel is light-weight,

flexible and almost impossible to break. It is waterproof, portable and comes with a 2 meter cable.

ToughStuff Super Bright LED Lamp: A rechargeable super bright LED lamp with a 5 year life span, four high-power LED lights and a long-lasting internal battery. The lamp has 4 settings of brightness that last for 5 to 40 hours. It is durable and can be hung with the swivel hook or a nail, or used as a torch.

Universal Charger: A universal charger with a 5 year life span provides an option to charge all phone types.

22 EzyLIfe is currently distributing the Sunking Pro solar lantern, but the lantern is not yet part of the wPOWER products arrangement.


September 2013 32

ToughStuff solar lantern kit

Replacement Policy: One year warranty: Customers have to complete a warranty card at the time of purchase. The card is used as proof of purchase and to justify returns. Replacements are based on demand, however ToughStuff Rwanda (TSR) has developed a tool for feedback which captures issues related to product performance and as such problematic situations are handled in time. TSR also makes sample calls to clients in order to learn about product-related problems and to gauge the performance and satisfaction clients have derived from the products.

Distribution channels: Cooperatives, mother’s unions, business development centers and NGOs such as World Vision, Compassion and CARE. Other organizations that have engaged with TSR and its sub-contractor Digitech, are the Ministry of Health, and local government entities.

Customers: Both men and women who purchase via cash and credit.

Arrangements with CARE: ToughStuff has an MoU with CARE to provide solar lanterns for the wPOWER program. The MoU has been in place since May 2013. In 2012, ToughStuff sub-contracted Digitech to distribute the solar lanterns on its behalf within the pilot project before the launch of the wPOWER. Some of these solar lanterns immediately malfunctioned and Digitech did not replace them as had been originally agreed. Unfortunately this has created negative feelings in customers and VAs who sold and the customers who bought the lanterns. The lanterns had still not been replaced at the time of this Study, i.e. mid 2013.

ToughStuff’s strategies used to sell to poor customers

Targets cooperatives, through the village chiefs and

local authorities. Offers credit to members of the

cooperatives who cannot afford to pay cash, and the

credit is guaranteed by the cooperative. A contract is

signed by the cooperative and endorsed by the local

authorities. They provide a down payment of about

30%.

Credit given to individuals: 30% down payment and

the rest is payable in varying periods depending on

agreed terms. In normal circumstances repayments are

usually between one to two months.


September 2013 33

7.2.1 Billem Innovations, Rwanda

Billem Innovations Ltd is a private company registered in Kenya and Rwanda. Billem Innovations is the executing link of Hestian Innovations, a UK Carbon company, currently running a Biomass Energy Conservation Program in Africa. Billem Innovations experience to date includes executing the Rwanda project which is part of the Africa Biomass conservation program and engaging rural Rwanda households and community institutions as well as development organizations in clean energy issues.

Billem Innovations promotes a mud stove that uses a clay lining, the Canarumwe, in Rwanda. The Canarumwe stove is an all-clay stove installed in mud in the kitchen. The stove is produced using a paddle mold and template methodology that helps to maintain standards for critical dimensions of the stove. The stoves are produced by potters from eight production units established by EWSA for the Government project, ‘National Dissemination of Improved Cook stoves in Rural Areas of Rwanda’. The Canarumwe is installed within mud (laterite soils) and there is no metal involved. It can be used as a portable stove but that reduces its shelf life. Actual sales of the Canarumwe started in September 2012. Average monthly sales vary between 500 and 750 stoves.

Clay lining for the Canarumwe stove

With good use and maintenance the stove has a life span of 5-10 years. It costs RWF1500 (bulk) and RWF2500 (retail) which is the production cost or subsidized price. Market prices vary and Billem Innovations is promoting the stove at RWF2500. Six thousand stoves have so far been sold and installed in 4,215 households in Rural Rwanda since establishment of the business.

Billem Innovations’ strategies used to sell to poor customers: The vulnerable pay RWF1000 and the rest 1500.

Distribution channels

a) Door to door sales: 70% of the stoves have been sold through this method.

b) Selling through cooperatives: 10%

c) Government administrative sectors: 20%

Replacement Policy: Users keep contacts of market mobilizers and they contact them when replacement is

required.

Customers: Men and women, who pay cash.


September 2013 34

Arrangements with CARE: There are negative perceptions about the mud stove from those who participated in the Rwanda discussions that, at this point, it is suggested not to distribute the Camarumwe within the wPOWER program but to focus only on more modern ICSs such as Ezystove and Envirofit stoves. This is in line with CARE’s intention to contribute to breaking the ‘business as usual’ approach to distribution of cookstoves and ensure that high quality and efficient products are marketed.

7.2.2 L’s Solution, Tanzania

L’s Solution was established in 2007. The company promotes the G3300, CH5200 and M5000 improved cookstoves, but only the models G3300 and M5000 will become part of the wPOWER program. Bulk price for the G3300 and M5000 is the same at TZS26000, and retail price is also the same for both at TZS30,000. L’s Solution distributes 1000 stoves per month and has sold 36,000 stoves to date. The company covers the northern parts of Tanzania.

L’s Solution strategy used to sell to poor customers: L’s Solution sells the stoves cash to SACCOs (Saving

and Credit Cooperatives) who in turn sell to members on credit.

Replacement Policy: Replacements can be made only during the first three month of the purchase, i.e.

against manufacture warranty.

Distribution Channels: Rural distributors, mobile energy van, road shows. Other channels are TATEDO,

SACCOs and churchwomen’s groups.

Customers: Both men and women, but mostly women, and women’s groups. Most customers pay cash but

some buy on credit through their savings groups.

Arrangements with CARE: CARE did not have an MoU with L’s Solution for the wPOWER program at the time of this Study, however discussions were ongoing. It is recommended to have more discussions with L’s Solution, particularly on the models of stoves that they will promote, i.e. the G3300 which has been upgraded to Envirofit M5000, which the company already distributes. It is better to promote the latest models within the wPOWER program rather than old models which may have some disadvantages. Apart from this issue, L’s Solution appears to be an ideal company to work with as it has the resources (2 trucks), undertakes road shows, and is based in Arusha which means it can serve the Arusha and Manyara VSLA communities.

7.2.3 Sollatek, Tanzania

Sollatek UK was founded in 1983 to exploit the patented design for an Automatic Voltage Switcher or AVS. Sollatek has since become one of the leading makers of specialist products to protect electrical and electronic equipment. Sollatek Kenya was established in 1985 and is now the leading branch within the group.

Internationally, Sollatek currently has offices in 14 countries and an active distribution network in 24 more. In

the rural areas of East Africa, where no grid power is available, Sollatek has been a pioneer in developing

reliable low cost solar home systems, which are used to power DC Lights, DC TVs and radios. Sollatek has

been distributing d.Light solar lanterns in Tanzania since 2012. The company sells the d.Light S2, S20 and S300 models. Monthly sales are, S2: 5000; S20: 700; and S300, about 300. Bulk prices are: S300 (USD30.6), S20 (USD10.6), S2 (USD7.6), and retail: S300 (USD38), S20 (USD13), S2 (USD9.5).

S2, S20 and S300

http://www.sollatek.co.tz/products/solar-home-systems/


September 2013 35

Sollatek’s strategies used to sell to poor customers: Sollatek is starting a pilot project with CARE to

establish how credit would work.

Replacement Policy: Two year, ‘no questions asked’ return to base warranty system. d. Light produces its

own battery which provides a life span of 5-10years for its products.

Distribution channels: Wholesalers, private companies buying for staff, and NGOs. Other organizations

engaged with Sollatek are Solar Sister, Tujijenge, Solar Aid, SNV, and GIZ (discussions ongoing).

Customers: CARE: 95% women. Solar Sister: mostly women. Own customers: 60% men and 40% women.

The customers pay cash.

Arrangements with CARE: Sollatek has an MoU with CARE to provide S2, S20 and S300 d.Light solar lanterns for the wPOWER program. The company has a branch in Arusha, which is close to the Arusha VSLAs. This shows commitment to serve remote communities, as the main company is based in Dar es Salaam. It is important to note that Sollatek did not outsource the distribution in these areas as was done in other project countries. Outsourcing has the potential to create problems for the consumer, particularly when products need to be replaced. Another problem that can arise is delayed deliveries due to lack of urgency on the part of the sub-contractor.

7.3 ARTIEnergy, Tanzania

ARTIEnergy is based in Dar es Salaam. The company distributes the M5000 at TZS40,000 and CH5200 at TZS50,000. ARTI Energy has been distributing improved cookstoves for over six months. ARTIEnergy also distributes Barefoot Power and SunKing products at the following prices.

Product Bulk Price

Retail Price

Barefoot FireFly Mobile TZS50,000 (USD31) TZS38,000 (USD24)

Barefoot PowaPack Junior Matrix

TZS130,000 (USD81) TZS100,000 (USD63)

Barefoot PowaPack 5W TZS230,000 (USD144) TZS175,000 (USD109)

SunKing Eco TZS20,000 (USD13) TZS17,000 (USD11)

Strategies used to sell to poor customers

a) Use of VAs who are in touch with poorer customers.

b) Partnered with VAs in Dar es Salaam who buy in bulk and sell at wholesale prices.

c) ‘Peg and spoke’ distribution which ensures service at every stage of distribution.

Replacement Policy: One year warranty: A repair workshop, and phone numbers on flyers for customers to call 24 hours a day (within reason) are available as part of the returns system. Distribution channels: District wholesalers, VAs Customers: 95% women Arrangements with CARE: ARTIEnergy and CARE signed an MoU in January 2013. Due to importation challenges, it took too long for ARTI to commence distribution of improved cookstoves. There are challenges and concerns around continuous supply as a result of this.


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7.3.1 Distribution Challenges faced by the Suppliers

It became evident during the Study that suppliers in the three countries face similar challenges in relation to distribution of improved cook stoves and solar lanterns in rural areas. The challenges are created by the need to serve those at the bottom of the pyramid while at the same time trying to keep prices low. Below are some of the challenges the companies above have experienced and solutions they have developed to deal with the problems.

Challenges Solutions

1. People’s inability to pay cash. Affordability is also a challenge in some areas

Deposit and installments to repay the balance strategy is applied. (ELR)

Credit is given to individuals: 30% down payment and the rest is payable in varying periods depending on agreed terms (TSR).

Customers are linked with financial institutions for financing (Barefoot).

VSLAs are entry point, and the cumulative savings enable members to purchase products either by installment or by cash (CARE).

2. Debt recovery

Clients are advised to pay at the nearest MFIs, and a penalty is charged for late payment (TSR)

3. High operation costs, including distribution. 4. High logistic cost of transporting the stoves

considering the diversity of Tanzania villages – some distances to customers can be more than 600km.

5. Lack of proper communication and infrastructure – Some areas are impassible due to poor road network.

6. Prices do not include transport and requesting a client to provide own transport can sometimes delay sales.

7. Difficulty to provide after sales service due to sparsely populated areas.

8. Low financial capital to cover costs of importation.

Sollatek has invested in a truck for upcountry trips, but public transport is used for sales persons. Sometimes Sollatek sends orders through public transport to Arusha where sales team collects and distributes.

Meet clients in groups or collectively to avoid many trips to the field (TSR).

EzyLife Kenya tries to get the stoves as close as possible to where a customer is located using a company truck.

L’s Solution uses two 2-ton trucks but these can only carry 360 stoves each. One 7 ton truck would be efficient (L’s Solution).

Train each dealer to be a qualified technician (ArtiEnergy)

Importation: no resolution on this issue yet – banks need collateral (L’s Solution).

9. Lack of, or poor product knowledge: End users buy and take away products without proper knowledge on usage resulting in many being returned.

Training on selling skills, product knowledge, technical repairs.

10. Repairs and replacements: In areas where there are no service centers, taking products for repair to head office becomes a challenge to customers.

11. Warranty problems due to lost receipts.

Barefoot has established 47 service centers in all counties and have now started training at sub-county level.

The company has also introduced an SMS system of warrant registration. At the point of purchase, end users register their warrantees by sending the serial numbers to a toll free number.

12. High marketing and awareness creation costs. 13. Majority of end users are semi-literate or illiterate and

this makes it difficult to communicate with potential customers.

Involve NGOs for marketing awareness and use of saving credit groups and churches.

14. Redistribution of stoves once delivered.

Billem Innovations assists community mobilizers to redistribute the stoves.

15. Perception as regards solar usage and convincing people to change from kerosene to solar, a new technology, is difficult.

16. Wrong perceptions on solar products created by briefcase sales brokers by selling counterfeit products.

Carry out training on product usage and sensitizing rural populations through adverts, road shows, brochures, etc. Encouraged local authorities to sensitize their people and build solar usage into their developmental agendas. (TSR)

Sollatek implemented a ‘Piggy Bank’ project in which potential customers were encouraged to deposit


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Challenges Solutions

money that they would otherwise use for kerosene daily in the piggy bank, and count the money after one month. This made potential customers realize how much they spend on kerosene on an accumulated basis and how much they can save by owning a solar lantern.

Providing efficient user education.

17. Maintaining the follow up required

Solution not yet identified. This could be an opportunity for CARE’s wPOWER program to develop an innovative solution to deal with this problem.

18. Low retention rate of agents,

Increased sales force (TSR)

19. Some NGOs highly subsidize the solar lanterns, which leads to market and price distortions,

Map off where the lamps have been distributed on subsidy and do not target the area for a while. (TSR)

20. Competitors and substandard low cost products from China

21. Bad weather(reducing sales in rainy seasons),

Set up strategies to prioritize sales and prospecting (TSR)

The Table below presents cost calculations of how much members of the VSLAs or their households are already spending on fuelwood, charcoal, kerosene, and candles. It also presents a summary of costs of improved cookstoves and solar lanterns being promoted by the suppliers that have an arrangement with CARE, together with feedback from the suppliers on different products already sold and the willingness of potential VSLAs to purchase the products.


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7.3.2 Current Spending on Energy in Households, Clean Energy Products and Willingness to Purchase

Country

Fuel and Technology

Average Monthly Spending23

Average Annual Spending

End User Unit Clean Energy Products and Cost

Distributor Network

Willingness to Purchase for the Solar Lantern / ICS

Feedback from customers to the Supplier

Kenya

Fuelwood 24KES2800 / USD33

KES33,600 / USD400

Ezystove: KES2500 / USD30

M5000: KES2135 (USD25)

Women’s groups

Community Based organizations

Medium to High25 The Envirofit M5000 is the most popular among all the stoves sold by ELK as the manufacturers have a built-in price subsidy (carbon credit) on the stove, making it the least expensive stove in the range. Customers also like the M5000 because it has the “feel” of an imported product.

Charcoal 26KES1200 / USD14

KES14,400 / USD171

CH5200: KES2780 (USD33)

Kerosene

27KES1400 / USD17

KES16,800 / USD200

Barefoot

FireFly Mobile: KES2280 (USD27)

PowaPack Junior (2.5W): KES5550 (USD66)

PowaPack (5W): KES10,950 (USD130)

Regional distributors, NGOs, organized groups, companies such as Unilever, CBOs, faith based orgs, MFIs, entrepreneurs

FireFly: High 2W: High (but many cannot afford) 5W: High (but many cannot afford)

FireFly: It is affordable PowaPack Junior: N/A PowaPack 5W: It is liked as it has multiple uses and it is installed in the house.

23 1USD is equivalent to: 84 Kenyan Shillings (KES), 642 Rwanda Francs (RWF) and 1,600 Tanzania Shillings (TZS) 24 Siaya County: Fuelwood. KES700 for fuelwood in Siaya Town. 25 As observed by the Consultant during demonstrations of the Ezystove, M5000 and CH 52000 stoves to the VSLAs. 26 In Siaya town charcoal costs KES150 and can last for 4-5 days (approximately 300 for 1 week) 27 1 liter of paraffin costs KES100 and last for 2 days in Vihiga.


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Country

Fuel and Technology




Distributor Network



Rwanda

Fuelwood 28RWF1500 / USD23

RWF42,000 / USD65

Ezystove: RWF16,500 Canarumwe: RWF2500

Table banking groups

Village technicians

Door to door

Cooperatives

Government administrative sectors

Distribution not yet started. N/A

Ezystove cooks fast, it is easy to use, clean to cook with, reduces smoke and looks good. Wood saving is the main benefit stated by users during a study undertaken by Billem Innovations.

Kerosene 29RWF1600 (USD2)

RWF19,200 (USD30)

ToughStuff solar lantern: RWF17,976 / USD28 SunKing Pro: RWF35,000 / USD55

Cooperatives, mothers unions, business development centers and NGOs, Ministry of Health, Local Government.

Low due to complaints about earlier model

The lantern is affordable, strong, provides good light, has good lumen, easy to use, can be used as torch.

Tanzania Fuelwood 30TZS40,000 / USD25

TZS480,000 / USD300

M5000: TZS40,000 / USD25

M5000: 30,000 / USD19 (L’s Solution price)

G3300: 30,000 / USD19

District wholesalers, VAs

Not known, as there was no opportunity to see any of the stoves being demonstrated during this Study.

Charcoal TZS56,000 / USD35

TZS672,000 / USD420

CH5200: TZS50,000 / USD31

28 1m bundle with 8 pieces of fuelwood costs about RWF500 and lasts for one day (makes only lunch and dinner) in Kirehe. 29 In Kirehe, Rwanda, Fanta bottle (soda), which is less than half a litre costs RWF400 and lasts 1 week. 30 In Babati District, Tanzania fuelwood costs about TZS10000, and charcoal 14000, both lasting about one week.


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Country

Fuel and Technology




Distributor Network



Kerosene 31TZS13,200 / USD8

TZS158,400 / USD99

S232: TZS15,200 / USD9.5

S20: TZS20,800 / USD13

S300: TZS60,800 / USD38

FireFly Mobile: TZS50,000 / USD31

PowaPack Junior: TZS130,000 / USD81

PowerPack (5W): TZS230,000 (USD144)

SunKing Eco: TZS20,000 / USD13

Wholesalers, private companies buying for staff and NGOs.

S2: High S20: Low S30 High, but many are not able to afford this lantern. Not known, as there was no opportunity to see the Barefoot and Sunking solar lanterns being demonstrated during the study.

S2 appears popular as indicated by monthly sales which are approximately 5000 units per month

S20 sells well because of the Government’s schools program.

People appreciate the S300 for its features, but cannot afford it. The selling points of these 3 products are durability, price, features such as mobile phone charging and warranty.

Barefoot’s PowerPack (5W) appears the most popular. The product has generated 70% of Sollatek’s sales for the past 4 years.

31 In Arumeru communities kerosene costs TZS2500 to 3300 for 1 to 1.5 litres, candles less than 500 each and dry cells about 600 each (usually two are used), all lasting about a week. 32 The S2, S20 and S300 are all d.Light models.


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Notes

Total monthly spending on cooking (fuelwood) and lighting (kerosene) per household in the three countries, in the surveyed areas is:

Kenya: KES4200 (USD50)

Rwanda: RWF5100 (USD8)

Tanzania: TZS53,200 (USD33)

Once time use is factored into cooking costs, the traditional open fire is the most expensive form of cooking with fuelwood. Once the price of an improved stove is spread over its life span, the stove costs are quite low and completely overshadowed by the value of saved biomass or reduced collection time (World Bank, 2011).

The monthly estimated expenditures should be compared with the actual spending on household energy fuels at end of the wPOWER program in order determine the impact of the ICSs and solar lighting on household energy expenditure patterns, i.e. measuring actual costs for those who acquired, and those who did not acquire the clean energy technologies during the life of the wPOWER program.

It is important to note that Barefoot solar lanterns were found in Kenya and Rwanda’s prominent supermarkets, and d.Light solar lanterns in very popular chain distributors in Tanzania (Arusha), all showing prices that were not too far from the wPOWER products. The presence of these brands in mainstream supermarkets provides reassurance about their quality.

7.4 Willingness and Ability to Buy

Many VSLAs meet at least weekly and during these meetings they bring their ‘shares’ to save and borrow. The rules are such that members can borrow up to three times what they have saved. The VSLAs have provided an alternative means for women in rural areas who cannot access mainstream funding to obtain regular finance as and when they need it to invest in their businesses, pay schools, doctor’s fees, and purchase whatever they may need for their households.

These households are ready and willing to purchase clean energy technologies. This is evidenced by their enthusiasm during demonstrations of the technologies, the fact that they trust that CARE can only bring them ‘good things’ as they put it, their fatigue in using solid, dirty and inefficient fuels and technologies, a realization that the ICSs will save them time and that solar lanterns do not smoke, and most importantly, their access to finance to purchase the technologies.

7.5 Household Decision Making and Purchase of Clean Energy Products

Household decision making is considered a key issue in acquisition of items for household use. The two types of households, male-headed and female-headed make decisions differently. In many cases a woman cannot single handedly make a decision and implement it in a male-headed household without consulting the man. However, a woman in a female-headed household has more liberty to make and implement decisions. Household decision making will have an impact on acquisition of clean energy products such as ICSs and the solar lanterns being promoted by the wPOWER program. But there are clear differences in relation to this issue, as the married women in Kenya appeared more ‘free’ to purchase household items, including clean energy technologies, an empowerment they seem to derive from being members of VSLAs. The following presents examples of the women’s reactions when asked how decisions are made to purchase items for the household:

Kenya 1. Women have decision making power and have become even more inspired by the VSLAs. They are

empowered and would buy what they want to buy, when they want to buy it.

2. Women are empowered to buy basics such as food and do not need a man’s consent for these. Women usually purchase items for the household and men would rarely buy unless requested.

3. Some women have to get a man’s consent before they buy certain items.


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4. For stoves, men have an unwritten contract with women that the kitchen belongs to them so they can

equip it as they wish, within reason.

5. Women and men are both decision makers; both women and men pay for lighting – sometimes men pay if requested to do so.

6. Women will always consult their male partners before purchasing a new device.

7. Women can make decisions but through consultations with men.

Rwanda

1. Women normally discuss if they need to purchase something, but the final decision is from the man.

2. The woman can present something to her husband, if he appreciates the idea, the item will be purchased for the household.

3. A man and woman discuss, but if the woman does not like something, it will not be bought.

4. Many household items are maintained by the woman, if she wants a new item, it is usually bought.

N.B. Most households in the Kirehe and Nyagatare districts are a women and man partnership, but male-headed. A partnership clearly exists for household item acquisition which presents a need to approach both the woman and man at same time and promote the clean energy products. This step is crucial and should never be missed.

Tanzania

1. When a need arises, the wife advises the husband, who makes the final decision.

2. A wife makes a suggestion to the husband; if he agrees they purchase the item.

3. A wife can buy what she wants with money she has earned.

4. A woman and man usually consult each other, but a woman can also decide to purchase on her own.

5. If a woman wants something, she buys; they are no longer living in ‘that era’ when a woman had to beg.

6. If a woman wants to buy something, she ‘asks’ the man; if a man wants to buy something he ‘informs’ the woman.

7. Generally men are the top decision makers.

This mixture of reactions from Tanzania indicate a more balanced decision making power, i.e. some women will readily purchase the clean energy products for their households through their VSLAs, while others will need to discuss it first with their husbands. However, the statement indicating a woman “asks” the husband while a man “informs” depicts a gender issue that results in a woman being on the receiving end and being told, while she herself is expected to always “ask” or “beg” the husband who may not necessarily agree.

7.6 Potential Increased Uptake of Clean Energy Technologies by VSLAs

There is no doubt that improved cookstoves offer a substantial number of benefits, such as reduced time in fuelwood collection as the ICSs use less fuelwood. Cost savings are also made in households that purchase fuelwood and charcoal as they purchase less of these fuels because ICSs are more efficient, lose less heat and therefore utilize less fuelwood and charcoal. Usage of smokeless technologies such as solar lanterns and less smoky ICSs would lead to general improvement of health. For instance there will be fewer complaints about itchy eyes, sooty nostrils, and dirty walls and clothes which result from using kerosene for lighting. Money will be saved with regard to reduced spending on kerosene, candles and dry cells in future.

It has been established in the previous sections that many households are aware that the current fuels they use are expensive, hazardous and not efficient. Key findings about the demand for clean energy technologies are as follows:


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Households are already spending a lot of money on fuelwood, charcoal, kerosene and other lighting fuels (see Table above). This is money that they can redirect towards loan repayments for the ICSs or their choice of the solar lantern.

The VSLAs are highly populated by women, who do most of the fuelwood collection and cooking, and purchase lighting fuels and technologies. This means that the women have first-hand experience in terms of the negative impacts of the cooking and lighting fuels and technologies. They are also the ones who lose time collecting fuelwood, and watch their children get affected by kerosene and fuelwood smoke each day. They are therefore a critical target when it comes to switching to better, cleaner technologies, especially when they have access to finance, in the form of the VSLA.

Members are already borrowing money from their VSLAs to invest in income generating activities, pay school fees, purchase household items that they need. The VSLAs just need to broaden to include other items and products like ICSs and solar lanterns, etc.

In most cases the participants did not appear alarmed by the prices of the ICSs nor the solar lamps. However, it is clear that many would not be able to purchase without having to borrow from their VSLAs. In this case the VSLAs will act as a micro enterprise for financing these clean energy products.

Demonstrations of the solar lanterns and ICSs were made to many groups during the Study, either by the supplier or CARE staff. It was during these demonstrations that many women and men were introduced to the CARE wPOWER clean energy products for the first time. Great enthusiasm for the products became evident during the demonstrations; in Kenya one VSLA member purchased an ICS immediately after the demonstration and others made orders. This is a trend wherever these products are introduced.

This Study revealed that there are many potential ICS and solar lantern customers within the VSLAs who are ready or will be ready to buy the products during 2013. These customers have either come in contact with the products during CARE and supplier demonstrations at the start of the project and during this study or heard about the products from CARE officers. The reason many of them have not yet purchased is that they are not familiar with ICSs and solar lantern technologies or the products are not yet available in their areas, or they are still waiting for the VAs and suppliers to deliver.

The interest in the clean energy technologies also arises from the fact that the products are promoted through a CARE project –members of VSLAs including the village agents have developed trust towards CARE staff and belief that they can only bring them ‘good things’. Furthermore, members of the VSLAs face so many challenges with regard to using traditional cooking and lighting technologies and fuels that they appear ready to switch to better, cleaner technologies.


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8 WOMEN’S OWNERSHIP AND MANAGEMENT OF CLEAN ENERGY

PRODUCT ENTERPRISES: PRESENT SITUATION

Key informant interviews and focus group discussions were conducted with VAs and members of VSLAs respectively to establish the current status of women’s ownership and management of clean energy product enterprises. There were 21 women Village Agents (VAs) interviewed (12 in Kenya, 5 in Rwanda, and 4 in Tanzania). In Kenya, 8 had agreements with CARE / suppliers and were already selling solar lanterns and ICSs. The five VAs in Rwanda were also participating, but none of the Tanzania women VAs interviewed owned or managed clean energy enterprises. The 12 VAs in Kenya had sold a total of 80 solar lanterns between them at the time of the Study. Two of the VAs had sold 10 improved cookstoves (one VA sold 9 and the other 1). The five Rwanda VAs, who started earlier during a pilot project, had sold over 70 solar lanterns between them, a clear indication of the high demand in the Kirehe and Nyagatare districts for the solar lanterns.

In order to speed up distribution, the Kenya country office had moved a step ahead and established franchisees in Nyamira / Kisii and Homa Bay counties. The Nyamira / Kisii county franchisee is a woman who is a supplier of general goods. Her tasks include mobilization of VSLA groups (over 1500 of them), training and supplying / selling solar lanterns and cookstoves to the community. She had been involved in the wPOWER two months prior to this Study. By the time of the interview she had already sold 532 solar lanterns and 272 cookstoves. The feedback she has received from her customers is that “Solar lanterns help them save the money they used to buy kerosene. Cookstoves use less fuelwood and produce little smoke compared to the traditional cooking stoves”.

During the VSLAs group discussions it became clear that the only women energy entrepreneurs the members of the VSLAs knew, were the VAs who were already working with the wPOWER clean energy program, i.e. those above.

As of March 2013, the following had been achieved through the wPOWER program:

73 Village Agents were trained in Kenya. They purchased 503 solar lamps and 1,047 cookstoves for retailing.

In Tanzania, 50 solar lamps were purchased. Orders totaling 180 solar lamps and 150 cookstoves had also been made by VAs to ARTI Energy.

In Rwanda, 90 solar lanterns were sold during the pilot project.

All the products had been sold to members of the VSLAs by the time of this Study. The above is an indication of the viability of VSLAs to act as a market for clean energy value chain and other products that could be identified in future.

It is important to note that most of the women VAs who have started selling the ICSs and solar lanterns are from Kenya in Homa Bay, Vihiga, Nyamira and Siaya Counties. The reason most of the women energy entrepreneurs are found in Kenya is that the country office moved quickly with identification of suppliers, training of VAs and distribution.

As the Study was undertaken during the initial stages of the wPOWER program the following related findings were established.

Many participants who took part in the discussions had not yet come across improved cookstoves such as the ones being promoted by the wPOWER program.

VAs were requested to purchase samples for demonstration to groups and this has been difficult and has led to many groups not having seen products to date.

Many women do not own these technologies as they do not know much about them.

Some groups are aware of solar lanterns, they have heard about the products from CARE officers and VAs, but they have not seen them.

Very few people have seen the technologies in other people’s homes.


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In Vihiga, people are aware of the Acre Fund which sells solar lanterns at KES700 on credit and Safaricom33 also sells solar home systems on credit but these are large and expensive systems which have not yet become popular.

8.1 Potential for Women Energy Entrepreneurs Outside the VSLA

Network

There are women who are not part of the VSLA network who are already Jiko entrepreneurs, selling the stoves from the local village markets. These women could become entrepreneurs for ICSs and solar lanterns; the move would be the same as getting new improved stock to attract a different type of customer.

Jiko entrepreneurs in Rwanda

33 A mobile phone network popular in Kenya.


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9 VIABILITY OF VSLA MEMBERS AND NETWORKS IN CLEAN

ENERGY DISTRIBUTION

This section assesses the viability of VSLA members and networks in distribution of clean energy products and technologies in all three countries.

9.1 VSLAs Viability as Clean Energy Markets

There are many VSLAs in Kenya, Rwanda and Tanzania and new ones are being formed each month. To date, Kenya has established an estimated 30,000 VSLA groups, with an average membership of 23 people, and a total of 690,000 VSLA members (75% women and 25% men). Tanzania has 19,402 VSLA groups with 469,897 members (approximately 70% women), and Rwanda has about 10,485 groups (20-25 members per group) with more than 285,000 members (79% women). These numbers alone present a very big, and instant market. The VSLA network in the three countries remains by far the largest untapped potential market for household equipment such as ICSs and solar lanterns as well as other future innovative products.

VSLA cluster meeting in Homa Bay, Kenya

The VSLAs charge 10% monthly interest rate on loans in Kenya and Rwanda but there were some groups in Tanzania who charge as little as 5%. Members are allowed to borrow up to 3 times what they have saved and all the savings and interest made is shared out at the end of every twelve months. VSLAs have disbursed loans as high as KES200,000 (USD2,381) in Kenya, RWF223,000 (USD347) in Rwanda and TZS900,000 (USD562) in Tanzania to individual members. This shows that there is easy access to funds within the self-managed groups, which can enable the women to purchase ICSs and solar lanterns with their savings. VSLAs are an appropriate network for distributing clean energy technologies due to the influence that the members have on each another and the trust that they have in CARE.

During interviews with the VAs (who already have their own enterprises), they were asked if they were interested in expanding their businesses to include clean energy products such as ICSs and solar lanterns. Many were positive as they felt this would increase their income, bring energy services to their neighbors, and improve the social and economic status of the customers, who are their neighbors. Some believe the clean energy products will attract a new group of customers to their already existing businesses.


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Reasons given by members why VSLAs would be a good distribution network for the solar lanterns and ICSs include:

It is a sustainable approach as groups have money in circulation and can obtain loans to purchase the clean energy products. There will be immediate sales due to access to finance from the VSLAs.

VSLAs improve people’s standard of living; the ICS and solar lanterns will contribute to this. The need for better quality light will inspire members of VSLAs to purchase the solar lanterns.

VSLA groups are sources of change; they are influential and will contribute to uptake of the ICSs and solar lanterns.

All members would want to have these products. They get excited about new ideas / products and are eager to see and acquire them.

There is potential for solar lamps to be used by fishermen who fish at night. These are potential customers for the VAs.

High demand will be created as new groups come on board.

The VAs and members of the VSLAs in all the three countries believe that the best selling places for the clean energy products would be:

Within the VSLAs during saving and loan meetings, and when groups are ‘sharing out’ after 12 months.

At the markets.

In the stalls and small shops situated within shopping centers, and from their homes.

Women’s groups, schools, gatherings such as funerals, church conferences, etc.

Hawking and door to door,

Areas where there is no electricity (for solar lanterns), and grid-connected areas (for stoves)

The suppliers shared the view that VSLA and VAs can be a potential distribution network for the clean energy projects, and gave the following reasons:

1. Village Agents are conduits to VSLAs while VSLA members are conduits to the rest of the communities. This has potential for large amounts of sales of stoves and solar lanterns.

2. VSLAs may not have business structures such as storage and transport to distribute. They are however a good selling point; they collect good money and they have market and finance.

3. Women are more connected to customers at village level so would make better mobilizers i.e. women VAs.

4. Women selling to women would be most powerful tool as women do the majority of the cooking and are in the best position to help the buyer understand the benefits of an improved stove.

5. Women tend to be more dedicated and have a longer term focus. Men tend to be impatient to grow the business.

6. Women are by far the best retailers to have as they are easier to train and are more committed to the job. They also pay more attention to detail, such as when completing warranty forms.

Two suppliers stated the following as conditions under which they would work with VSLAs:

1. CARE must establish a Guarantee Fund (GF) which would make it possible for banks to lend money to the Village Agents, with the loan guarantee coming from the GF. ToughStuff Rwanda

2. The VSLAs should be financially capable of purchasing and have relationships with micro finance institutions: ToughStuff Rwanda


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3. The VAs will provided with a branded outfit comprising T-shirt, hat, including promotional materials and information brochures, translated into the local language. The idea is to develop a more modern sales force in the form of VAs. EzyLife Rwanda

9.2 Potential for Women Entrepreneurs to Participate in the Distribution

Most members of VSLAs are women, and many of them already have small enterprises. Most women who participated in the focus group discussions on VSLAs and households stated that they were involved in some type of income generating activity. Majority of these women were involved in producing / buying and selling crops. The VSLAs play a critical role in the survival of these activities as loans are taken either to start the activities, or to purchase stock, seeds, etc. The types of income generating activities the women participate in are similar across the countries. In addition to sale of crops and vegetables at the market and running small local shops (boutiques), unique examples of enterprises that the women own in the each of the three countries are listed below.

Kenya

Second hand clothes (Mitumba). This is becoming a large industry in Kenya.

Fish sourced from fishermen at the Victoria Lake and sold at the market.

Growing and selling cotton.

Making and selling clothes.

Bookstore

Making and selling rope (twine)

Motorcycle spare parts shop

Rwanda

Producing and selling sorghum beer from the homestead.

Producing and selling fruit juice.

Tanzania

Concrete stone factory.

Selling charcoal

Masaai cloth door to door business

Selling handcrafts

When asked if they make profit, most said yes. The women were also asked what they do with the loans they acquire from their VSLAs and below are country examples of how the loans are utilized: Kenya

Invest in their businesses

Pay school fees

Support the family

Rwanda

Invest in business

Pay school fees

Pay health insurance for children


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House maintenance

Tanzania

Investment in enterprises

Pay school fees

Build houses

Purchase items for household use. One woman purchased a 3000 liter water tank with a loan from her VSLA.

Pay doctors’ fees and purchase livestock to keep as investment.

Women’s experience in working with enterprises provides important lessons for clean energy businesses, as outlined below:

Distance: An example can be given of the trip to meet a cluster of VSLAs in Homa Bay, Kenya where the road was almost impassable. At some point the study team had to undertake the rest of the journey to where the cluster was meeting on foot.

Sources of income are limited for some women and sometimes profit is used to support the family instead of being reinvested in the business.

Some customers take items on credit then take longer than agreed to pay.

Market tax takes some of the profit.

Sometimes their savings are not enough to obtain the credit they want, i.e. the women do not get the right amount they want to start with so they do not reach the goals they had set for themselves.

Lack of knowledge on the business they are doing including lack of marketing skills, have hampered growth in some enterprises.

There is a likelihood that some of the women members of the VSLAs will become involved in clean energy technology distribution by simply adding the technologies to their already existing items for sale. Those with slightly larger enterprises such as second hand clothing should be invited to join wPOWER as sales people, just like the VAs. They have a chance to succeed as they already know how to run businesses.


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10 CONCLUSIONS AND RECOMMENDATIONS

10.1 Conclusions

It became clear during this Study that many rural households in Kenya, Rwanda and Tanzania rely on fuelwood and charcoal for cooking, with poorer households using anything that can burn, such as agricultural residues and cow dung. It also became evident that the use of the traditional 3-stone technology is highly prevalent. One would expect this technology to be used by mainly poor households but it was found that even houses that were connected to the electricity grid and used fuelwood for cooking, also used the 3-stone technology.

Kerosene and fuelwood ‘fatigue’ was also observed by the consultant during the fieldwork. People are aware that the smoke from kerosene and fuelwood may be causing them health problems, hence the need to replace their cooking and lighting technologies with clean energy products. In general, the use of fuelwood, charcoal and other inferior fuels and technologies is not out of choice or any specific cultural reason, but because many people are simply not aware of alternatives such as better ICSs and solar lanterns available in the market. The scarcity of fuelwood in some areas, and complaints about the smoke from fuelwood and kerosene lamps and the high costs of fuelwood and kerosene, are likely to drive the large number of VSLA members (over 3 million altogether in the three countries) towards switching to solar lanterns and improved cookstoves, especially since the members have access to finance in the form of VSLA loans to purchase the products.

It has been written by many researchers that innovative financing is what is required to ensure that clean energy technologies such as ICSs and solar lanterns reach the bottom of the pyramid. The VSLA method of financing is innovative and it is just what is required to enable poor households to access clean energy technologies.

CARE’s wPOWER program places a high emphasis on delivery channels to cover the ‘last mile’ to reach places where poor rural households are located. The wPOWER program has ensured that suppliers of clean energy technologies working within the program have put in place measures to distribute the products to the rural areas. However, many VSLAs reside in off road areas which can sometimes be difficult to reach. The suppliers, although well-meaning, are likely to face serious difficulties with regard to reaching VSLA customers who are off-road and may lose momentum along the way.

10.2 Recommendations

10.2.1 Overall Strategy

Clearly, involving VSLA members in purchasing and selling clean energy products is a viable option. The strategy for involving them should incorporate the elements below.

10.2.2 Awareness creation

Potential consumers not knowing about clean energy options seems to be a primary bottleneck. For this reason, a widespread information campaign on the following issues would be useful:

Different types of ICS, solar lanterns, their benefits and prices.

How to use and care for the products.

Basic maintenance and repair of the products.

Roadshows and radio media can be used to popularize the products and give information on where they can be found.

10.2.3 Support for VSLA members and VAs

Members of VSLAs would require the following support in order to function well within the clean energy distribution network:


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Extended payments: Some members cannot afford to take a loan from the group to purchase the lamp and pay it back in 1 month, and would like to be allowed to pay in months installments over 2-3 months. Many VSLA members in Kenya have purchased solar lanterns and improved cookstoves using loans with repayments made in installments over 3 month.

Better information about the benefits and durability of the products, how they work, and how long they last, as well as information on how to care for the products. For example, there are complaints in Kirehe, Rwanda about the solar lantern cable connection not working properly. This, the consultant established, could be due to the amount of dust that the customers allow to accumulate on the solar lantern and the cables.

Credit measures from suppliers to enhance sales (e.g. a VA gives a deposit to the supplier and pays the balance after the products are sold).

Training on entrepreneurship (sales, marketing, bookkeeping, etc). Most VAs have basic bookkeeping skills that they acquired from CARE to enable them to establish and support new VSLAs. Refresher courses would be ideal to allow them to get more knowledge and confidence in selling clean energy products.

10.2.4 Support for suppliers

The roles of CARE staff, its franchise distributors and the VAs/women entrepreneurs as last mile distributors should be clarified. Transportation to distribution points/district and local hubs (i.e. deliveries to VSLA meetings and VAs shops/enterprises) should be divided between franchisees and the supplier. It should also be made clear which areas the supplier and the franchisees will distribute in, as this would reduce delays in delivery. The fact that there are still many groups in areas further from the supplier hubs that have not yet seen the clean energy products means that CARE should do more to enforce the clause in the MoUs with suppliers that covers sharing of product distribution/delivery.

10.3 Way forward: Short Term

10.3.1 Liaise with government’s ongoing efforts

Keep regular contact with relevant renewable energy government institutions, i.e. Department of Energy in Kenya, REA in Tanzania and EWSA in Rwanda, to discuss wPOWER progress and to establish how the wPOWER program can benefit from other government activities.

10.3.2 Plan next steps with CARE Country offices

a) Provide each country office with product samples of the ICSs and solar lanterns that are being promoted in each country. These can be used during visits to VSLAs that have not yet seen the products. The staff can also observe the products over time in order to learn more about how they operate, and the limitations of each product.

b) Address the budgetary constraints faced by country teams, which include inadequate funds for training the potential entrepreneurs and lack of transport vehicles and drivers to undertake field visits.

c) Reinforce the Tanzania project staff, particular the Moshi Office as it has only one staff member.

10.3.3 Develop and Implement an Efficient and Robust Monitoring System

Develop a monitoring form to be used by each VA or VA to monitor performance of each product sold to members of the VSLAs. Follow up rigorously and encourage regular use of products, especially ICSs, to avoid loss of interest by the consumers. Kenya country office can share experience on the monitoring with the Rwanda and Tanzania.

10.3.4 Distribution

Establish franchisees in major centers, as is being done in Nyamira / Kisii, Kenya. The distribution model below can be used in particular, to cover areas that are remote and/or difficult for the suppliers to reach.


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Distribution Model for Remote VAs and VSLAs

N.B. The franchisee – which should be an entrepreneur or local organization – should have the experience and resources to distribute products to the last mile. The franchisee should be under CARE’s direct control and should manage logistics. In Rwanda, there are many people who work within the water delivery chain, to households. The franchisee should be encouraged to use the services of these men to deliver to VAs in remote areas of Kirehe and Ngagatare Districts.

The Model can be applied in the following counties / districts and regions:

Kenya: Siaya and Vihiga counties as well as Garisssa (367km), Wajir (690km) and Mandera (1139km) Counties. All distances are between the counties and Nairobi.

Rwanda: Kirehe District, and the Rubavu (156km from Kigali) and Gatsibo (102km from Kigali) districts where wPOWER will be implemented in future.

Tanzania: Babati District (200km from Arusha).

a) Encourage Village Agents (sales agents) to use M-Pesa34, the mobile money system to pay deposits for orders and the subsequent balance. This system could first be used in Kenya and Tanzania where mobile money (sending and receiving) is an everyday phenomenon. Most members of the VSLAs and the VAs have mobile phones.

34 M-Pesa (M for mobile, pesa is Swahili for money) is a mobile-phone based money transfer and micro

financing service for Safaricom and Vodacom mobile network operators in Kenya and Tanzania. M-Pesa allows users with a national ID card or passport to deposit, withdraw, and transfer money easily with a mobile device. http://en.wikipedia.org/wiki/M-Pesa. Other money transfer systems in operating in East Africa are airtelmoney and tigopesa.

• CARE Country Office

ICS and Solar Lantern Suppliers

• Local Entrepreneur

Franchisee

• Village Agent

Sales Agents

• Members of VSLAs

Other Community members

http://en.wikipedia.org/wiki/Safaricom

http://en.wikipedia.org/wiki/Vodacom

http://en.wikipedia.org/wiki/M-Pesa


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Mpesa store

10.3.5 Suppliers and Products

Replace the solar lanterns that were sold in the pilot project in Rwanda and malfunctioned immediately. This should be done as a matter of urgency, to protect CARE’s image. This may require paying to purchase and replace the lanterns and taking up the matter with the supplier for reimbursement.

Halt sales of any product that is being complained about by more than 10% of the consumers, and reassess. Aim for zero returns.

Identify women in key village markets (with assistance from CARE), and involve them in the distribution of ICSs and solar lanterns. These include the women in Kenya and Rwanda with whom preliminary discussions were undertaken by the ENERGIA consultant, who showed interest in selling ICSs and the solar lanterns. Introduce another solar lantern brand, such as Barefoot Power, in areas where the pilot was implemented, as there were complaints about ToughStuff solar lanterns that malfunctioned and have still not been replaced. Participants in the focus group discussions did confirm that they would happily purchase solar lanterns of another brand.

It is better for CARE to stick to more modern types of ICSs, i.e. the Ezystove and Envirofit’s M5000 and CH5200, for the entire wPOWER program in all the three countries. Participants in Kirehe and Nyagatare, Rwanda appeared mud-stove weary, and the Camarumwe is a basically a mud stove. Discuss further, the stove models being distributed by L’s Solution in Tanzania. The G3300, for instance, has been upgraded to M5000, which is already being promoted within the wPOWER program by ARTItiEnergy (Tanzania) and The Paradigm Project (Kenya).

10.4 Long Term

1. CARE should set up a private company to operate exclusively as a social enterprise in each country. This can be done at the start of 2015 before the program’s conclusion to ensure that distribution continues beyond 2015. The profit margins on the solar lanterns and improved cookstoves are already very small and as a result the suppliers are not likely to reach remote VSLAs. A CARE social enterprise could potentially take on this role, while at the same time offering other basic products such as water filters. Connect with JITA in Bangladesh, a CARE social Enterprise established in 2012 to distribute products to remote areas, while at the same time creating entrepreneurs out of extremely poor women. Other social enterprises to learn from are Solar Sister (solar lanterns), operating in Kenya, Tanzania


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and Uganda, and SCODE based in Kenya dealing in improved cookstoves. Funding can be solicited for external partners to establish the CARE social enterprise.

2. Arrange social enterprise training for all staff working on the wPOWER program prior to establishment of the private company.

3. Work with the suppliers of ICS to develop an improved stove that can burn both charcoal and fuelwood.

4. Connect with organizations such as the Global Alliance for Clean Cookstoves and Lighting Africa to share experiences and the results of the wPOWER innovative financing mechanism.

5. Contact the implementers of the World Bank’s ACCES program to share ideas and possibly resources for scaling up wPOWER in the future. Assess the potential of local manufacturers such as the Jua Kali in Kenya and the Cooperative AJDR in Rwanda to locally produce the Ezystove, for example. Locally produced ICSs would not attract import duties, which would bring down the cost of the ICSs and make them more affordable for poorer households.

6. Explore the possibility of working with mobile phone networks to promote the wPOWER program, clean energy products and other products that may be added in future. Most members of VSLAs have mobile phones and would benefit from this service.


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11 REFERENCES

1. East African Community, 2009. Regional Strategy on Scaling-up Access to Modern Energy Services in the East African Community. http://www.energy.eac.int/index.php?option=com_docman&task=cat_view&gid=52&Itemid=70

2. Energising Development (endev), 2012. Dynamic market for improved cooking devices in Kenya. http://www.cleancookstoves.org/resources_files/dynamic-market-for-improved-cooking-devices-in-kenya.pdf

3. ESMAP. Expanding Women’s Role in Africa’s Modern Off-Grid Lighting Market.

www.esmap.org/sites/esmap.org/files/gender_lighting_highres_LOW%20RES.pdf

4. GVEP, 2013. DEEP Booklet 2013. http://www.gvepinternational.org/sites/default/files/deep_booklet_2013_0.pdf

5. http://www.euei-pdf.org. National Energy Policy and National Energy Strategy 2008-2012, Ministry of Infrastructure, Rwanda.

6. http://www.euei-pdf.org/country-studies/biomass-energy-strategy-best-rwanda

7. http://www.migeprof.gov.rw/?Gender-Equality,88

8. Isumbingabo, 2012. Presentation made by the Minister of State for Energy, Emma Françoise Isumbingabo. Energy Investor Forum. Kigali, Rwanda, February 29, 2012). www.ewsa.rw

9. Kariuki, P. and Balla, P. GVEP’S Experience with Working with Women Entrepreneurs in East Africa.

www.gvep.org

10. Kenya Institute for Public Policy Research, 2010. A Comprehensive Study and Analysis on Energy Consumption Patterns in Kenya. http://www.cofek.co.ke/ERCStudy_ExecSummary_02082010.pdf

11. Kirrin, G, et al 2012. Invincible Market - Energy and Agricultural Technologies for Women’s Economic Advancement. International Centre for Research on Women (ICRW).

12. Paul Mbuthi, et al., 2007. Gender Audit of Energy Policy and Programmes in Kenya.

www.energia.org

13. Republic of Kenya, 2012. Kenya National Energy Policy. http://www.energy.go.ke/index.php/universal-access/download/finish/3-ministerial-documents/6-national-energy-policy-third-draft-may-11-2012

14. TATEDO. Annual Report 2011. http://www.tatedo.org/files/publications/Annual%20Reports/TATEDO%20Annual%20Report.pdf

15. The United Republic of Tanzania, 2013. Scaling-Up Renewable Energy Programme (SREP). Investment Plan for Tanzania. https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/SREP_Tanzania_Investment_Plan_Design.pdf

16. The United Republic of Tanzania, Ministry of Energy and Minerals, 2003. The National Energy Policy

http://www.mem.go.tz/Resources/eLibrary/tabid/93/language/en-US/Default.aspx

17. The World Bank, 2011. Household Cookstoves, Environment, Health, and Climate Change. A New Look at the Old Problem. http://www.cleancookstoves.org/resources_files/household-cookstoves-

1.pdf

18. The World Bank. Africa Clean Cooking Energy Solutions Initiative: Scaling-Up Access to Clean Cooking Technologies and Fuels in Sub-Saharan Africa. http://siteresources.worldbank.org/EXTAFRREGTOPENERGY/Resources/WorldBank_ACCES_AFREA_AFTEG_ESMAP_FINAL.pdf

http://www.energy.eac.int/index.php?option=com_docman&task=cat_view&gid=52&Itemid=70

http://www.cleancookstoves.org/resources_files/dynamic-market-for-improved-cooking-devices-in-kenya.pdf

http://www.cleancookstoves.org/resources_files/dynamic-market-for-improved-cooking-devices-in-kenya.pdf

http://www.esmap.org/sites/esmap.org/files/gender_lighting_highres_LOW%20RES.pdf

http://www.gvepinternational.org/sites/default/files/deep_booklet_2013_0.pdf

http://www.euei-pdf.org/

http://www.euei-pdf.org/country-studies/biomass-energy-strategy-best-rwanda

http://www.migeprof.gov.rw/?Gender-Equality,88

http://www.ewsa.rw/

http://www.cofek.co.ke/ERCStudy_ExecSummary_02082010.pdf

http://www.energy.go.ke/index.php/universal-access/download/finish/3-ministerial-documents/6-national-energy-policy-third-draft-may-11-2012

http://www.energy.go.ke/index.php/universal-access/download/finish/3-ministerial-documents/6-national-energy-policy-third-draft-may-11-2012

http://www.tatedo.org/files/publications/Annual%20Reports/TATEDO%20Annual%20Report.pdf

https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/SREP_Tanzania_Investment_Plan_Design.pdf

https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/SREP_Tanzania_Investment_Plan_Design.pdf

http://www.mem.go.tz/Resources/eLibrary/tabid/93/language/en-US/Default.aspx

http://www.cleancookstoves.org/resources_files/household-cookstoves-1.pdf

http://www.cleancookstoves.org/resources_files/household-cookstoves-1.pdf

http://siteresources.worldbank.org/EXTAFRREGTOPENERGY/Resources/WorldBank_ACCES_AFREA_AFTEG_ESMAP_FINAL.pdf

http://siteresources.worldbank.org/EXTAFRREGTOPENERGY/Resources/WorldBank_ACCES_AFREA_AFTEG_ESMAP_FINAL.pdf


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19. Uwamahoro, 2012. Overview of Energy Sector Projects. Presentation made by Deputy Director General in charge of Energy-EWSA. The Energy Investors 'Forum Kigali, 29th February 2012. www.ewsa.rw

http://www.ewsa.rw/


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ANNEXES

1. FOCUS GROUP DISCUSSIONS & INTERVIEW PARTICIPANTS

Below is an outline of the members of the VSLAs and households consulted and the interviews held:

Field Visits: Kenya

Country Kenya VSLAs Households Village Agents

County / District Siaya 26 Participants representing VSLA groups A, B, C and E (Ndori)

11 participants from 1 VSLA. Pala sub Location. All women.

18 participants from Par Mapiyo Women’s Group. Masala sub Location

24 participants representing Funny, Mandeleo, Upendo and Tingamalo VSLAs. Pala sub Location

16 participants from ACK Church, Mother’s Union. Siaya Town

11 VAs from Ndikwa, Central Asembo, Ndori, Maranda, Sounth Ramba, Ligala and Pala sub Locations

Homa Bay 1 cluster of VSLAs made of 10 groups (48 participants). All women.

34 Participants (representing 10 VSLA groups)

1 VA (female) 1 Stockist (man)

Vihika 7 participants from Word of Faith Church, Mbihi sub Location

1 VA (female). Vihiga town.

TOTAL 85 99 14

Field Visits: Rwanda

Country Rwanda VSLAs Households Village Agents

County / District Kirehe 11 Participants: Twuzuzanye VSLAs

11 participants: Twubakanye VSLA (the area is connected to electricity grid)

9 Twanze U Bukene VSLA

7 members representing the households within the Twuzuzanye, Twubakanye and the Twanze U Bukene VSLA VSLA areas.

Three village Agents in charge of 21, 20 and 12 groups respectively.

Nyagatare 14 Participants: Tuzamurane VSLA

14 Participants: Twitezimbere VSLA

Households representing both the Tuzamurane and Twitezimbere VSLA areas.

Two Village Agents in charge of 60 and 54 groups, respectively.

TOTAL 59 29 5


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Field Visits: Tanzania

Country Tanzania VSLAs Households Village Agents

County / District Babati 10 participants Amka VSLA (all women). Manyra Region, Kwere Ward

12 participants (11 women, 1 man): Mwanachama VSLA area. Manyra Region, Mrara Ward

Eight Village Agents in charge of 3, 5 and 4 (women VAs), and 8, 8, 4, 6, and 7 (men Vas) groups respectively. The VSLAs are in Bonga, Kwere, Mrara, Kata-Kiru, Nangara and Singe Wards.

Arusha 18 Participants (all women):Enyuata VSLA, Olasiti Ward

21 Participants: Songambele VSLA,

21 participants: Ndumusoi VSLA (11 women, 10 men). Kisongo CMC

11 Participants Enyuata VSLA and 9 participants Amani VSLA, Lesiraa Ward, Kisongo

Enyuata VSLA households

Songambele VSLA households

Ndumusoi VSLA households

Naduvo VSLA households (3 women, 3 men) Naduvo village, Kisongo

One Village Agent in charge of all the Arusha groups visited.

TOTAL 81 66 9


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2. FOCUS GROUP DISCUSSIONS & INTERVIEW TOOLS

The tools in this section were used to conduct focus group discussions, interviews and meetings with suppliers and government officials.

Private Partner Meeting – SOLAR LAMPS AND IMPROVED

COOKSTOVES

Approach

Key informant discussions with select retailers / distributors, to understand the communities’ demand for and ability to pay for energy services, the range of products available, distribution channels being used and their receptivity towards engaging with the VSLA channel.

Data collected will assist with the following:

Establish the current status of women’s ownership and management of clean energy product enterprises,

Develop an inventory of existing cooking and lighting technologies in use and of suppliers of clean energy products and services,

Understand and document the preferences of the target customers, as well as those of Village Agents, prospective women entrepreneurs and surrounding communities,

Assess the market potential for improved cookstoves and solar lamps,

Assess the viability of women and VSLA networks in distribution of clean energy products and technologies.

Questions / Discussion Points

1. Do you have an MoU with CARE, if so when did it come into place?

2. What type of solar lanterns do you sell?

3. Price for each type (bulk, retail, etc)

4. Which ones are part of the CARE wPOWER program?

5. Please provide technical specs of the products that are part of CARE wPOWER project, including shelf life.

6. How long have you been selling these?

7. Monthly sales?

8. How many have you sold so since establishment of the business?

9. What strategies do you use to sell to poorer customers?

10. What distribution channels do you use? How many have you sold through these?

11. What distribution challenges have you experienced when selling to rural areas?

12. How did you resolve these?

13. Do you have a Replacement Policy? If yes, how does it work?

14. Who are your customers? Men/ women? Both?


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15. How many women and men have you sold the solar lanterns to?

16. How do customers purchase your solar lanterns, cash or credit?

17. If credit, what are the repayment terms?

18. What is the repayment performance? Success, not good, etc?

19. Which do you believe (according to sales) is the preferred solar lantern? Which models? Why?

20. Have you received feedback from consumers why they prefer this particular type of solar lantern?

21. What, according to your observations are the selling points of your solar lanterns?

22. Do you have any observations, as who, women or men are better retailers of your products?

23. Have you provided training for CARE’s Village Agents, and if so, what type of training?

24. What do you think of VSLA’s as a potential distribution network? Would you be willing to work with VSLA groups in your business? Will you be willing to train them? On?

25. Under what conditions would you work with VSLAs?

26. Which NGOs (or other organizations, government departments, etc) have you engaged with / continue to engage with for distribution on cookstoves?

27. How many solar lanterns have you sold to these organizations?

28. Did they purchase the solar lanterns to sell in rural areas or to give away?

29. Any anticipated sales in the near future to the same or similar organizations?

Village Agents – Key Informant Interview

Approach

Key informant interviews with Village Agents, to understand their willingness to train and support VSLAs involved in CARE’s wPOWER program as well as to their potential to scale up their solar lantern / improved cookstoves activities. The exercise will also establish the perceived demand for the products and the specific information, knowledge, skills and capacity would be necessary to make Village Agents successful solar lanterns / improved cookstoves entrepreneurs. Village Agents are community based trainers and they are also sales agents within the wPOWER project.





Assess the market potential for improved cookstoves and solar lamps,

Assess the viability of women and VSLA networks in distribution of clean energy products and technologies, and


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1. Have long have you been involved with VSLA?

2. How long have you been involved in CARE’s wPOWER program? What are their exact tasks? Area of coverage? How often do you visit each village?

3. How many groups of VSLA do you currently support and where are they based?

4. Do you have an Agreement with CARE which has established you as a sales agent for solar lanterns / improved cookstoves?

5. When did this come into place?

6. Are you already involved in other businesses?

If so what products do you sell?

How is the response?

Would you like to expand the business to include clean energy devices? Why/ why not?

7. Since the start of your engagement as a sales agent how many solar lanterns / improved cookstoves have you sold?

8. To who and in which areas?

9. What do you see as the best places for selling the solar lanterns / improved cookstoves?

10. Which for solar lantern / improved cookstove appears the most liked by consumers?

11. Have you received feedback as to why they like this particular product?

12. Have your received training from the supplier involved, and if so what type of training?

13. Have you been able to train members of VSLAs after this training?

14. What other training and information would you like to receive from the supplier to assist you in your activities as a sales person / village agent?

15. What are your thoughts on VSLAs ability to distribute (act as a market or retailers) for clean energy products in future?

16. Do you know other women in your area who are own solar lantern / improved cookstoves enterprises but are not part of VSLA’s.

17. If so can you share their details?

18. Bookkeeping / record keeping skills?

VSLA Focus Group Discussion

Approach

Key informant interviews with VSLAs, to understand their willingness to deal with clean energy products and services, their assessment of demand for such products and what specific information, knowledge, skills and capacity would be necessary.


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Assess the market potential for improved cook stoves and solar lamps,

Assess the viability of women and VSLA networks in distribution of clean energy products and technologies, and


1. How long has your VSLA existed?

2. How many members?

3. How does your VSLA function? Committee?

4. How often do you meet? Why did you decide this way?

5. Savings and Loans, minimum / maximum per member.

6. What is the highest amount you have loaned out to members?

7. What is the interest charged on loans?

8. What do members use the loans for?

9. Are you involved in businesses?

10. What products do you sell?

11. Do you make profit?

12. What lessons and bottlenecks have you learned / experienced in selling these products?

13. Do members have bookkeeping / record keeping skills?

14. Are you aware of renewable energy technologies such as solar lanterns and improved cookstoves?

15. Are you already involved in CARE’s solar lantern / improved cookstove program? If yes when did you become involved?

16. Which CARE solar lamp or ICS products have you acquired, for household use or for sale?

17. Would you be interested in CARE’s solar lantern / improved cookstoves program?

18. Under which conditions would you want to be involved?

19. What kind of support would need from the program? Training/ inventory/ investment, others?

20. What type of training would you want to receive if you were purchase a solar lantern / stove for household use?

21. What type of training would you want to receive if you were purchase a solar lantern / stove for retail?

22. If you are interested in lantern / stove for retail or are already doing it what do you see as the best areas for selling the products.


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23. If you are already selling a solar lantern / stove, which product type appears as favourite for the consumer?

24. Have you received feedback as to why they like this particular product / brand?

Households Focus Group Discussion

Approach

In-depth focus group discussions with men and women in select communities to document current energy use pattern, challenges faced in the existing product mix, people’s (men and women) aspirations with respect to energy services, their willingness and ability to pay for these and their views on the VSLA network. The existing level of awareness on the role of women in clean energy markets in the target locations will be established during the same meetings. The consultant will also use own observation (experience) to establish this.


Development of an inventory of existing cooking and lighting technologies in use and of suppliers of clean energy products and services.

Understanding and documenting the preferences of the target customers, as well as those of Village Agents, prospective women entrepreneurs and surrounding communities.

Assessing the market potential for improved cook stoves and solar lamps.


1. What type of energy fuel do you use for cooking and lighting in the home?

Cooking:

Lighting:

2. Do you use the cooking and lighting fuel with a particular technology, if so which one?

Wood

Charcoal

Kerosene

Torch (dry cells)

3. Where do you source the cooking and lighting fuel?

Wood

Charcoal

Kerosene

Torch (dry cells)

4. How long does it take to source the cooking and lighting fuel (days/ weeks/ months)?

Wood

Charcoal


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Kerosene

Candles

Batteries

5. How much do you pay (weekly or monthly) for the cooking fuel and technology?

Wood

Charcoal

Kerosene

Candles

Batteries

6. What challenges have you experienced with the current fuels / technology that you use?

Wood

Charcoal

Jiko

Kerosene

Kerosene lamp

Glass lantern

Candles

Batteries

7. Which fuels and technologies would you rather use and why?

8. Would you be willing to pay for your preferred fuel (and technology) and about how much can you afford (one time cost as well as recurring)?

9. Do you know about improved cookstoves, where it is available (how far), how did you get to know about them, have you seen them, how much are you willing to invest in ICS?

10. Do you know about solar lanterns, how did you get to know about them, have you seen them, how much are you willing to invest in solar lanterns??

11. Have acquired ICS or solar lantern, when, and how often do you use the technology?

Jiko / ICS

Solar lantern

12. If no, why do you not have the technology?

13. Would you be interested in owning and ICS or solar lantern?

14. What Jiko / ICS and solar lantern models available locally, where and which is the best and why?

Jiko / ICS

Solar lantern


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15. What features do you need in a Jiko / ICS and solar lantern?

Jiko / ICS

Solar lantern

16. What are the problems with the Jiko and solar lantern models available locally? How much do you pay for it?

Jiko / ICS

Solar lantern

17. What is the distribution channel for it?

Jiko / ICS

Solar lantern

18. How long do the Jikos / solar lantern last?

Jiko / ICS

Solar lantern

19. Components replacement – where available, who stocks, cost, frequency of replacement

Jiko / ICS

Solar lantern

20. Which communication channels are used by men, women? Radio/ village extension worker/ any other? Which is the best?

21. Are there any women in the village who could work as extension workers for new energy devices?

22. Are the village shops likely to stock these? Why/ Why not?

23. Are VSLA members the right people for disseminating these?

24. What kind of support would the VSLA need?

25. Household decision making (cooking and lighting devices): Who pays? If women wanted a new device, would they be in a position to make the purchase decision and pay for it?

26. Profile of households – list of assets: TV/ radio/ land, etc. Are some of them women headed?

27. How were the devices financed?

village savings loanassociations: market potential for clean … wpower... · vslas often have a...

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