New Swimwear for Plus-size Women in Brazil

Brazil is well known for its stylish swimwear, with styles usually targeted at young women and those with more conventional, media-friendly body shapes. But now a company is making visiting the beach more comfortable and empowering for plus-size women.

Prior to the arrival of plus-size swimwear, women turned to over-sized tshirts and baggy shorts to hit the beach. Now, Brazilian companies are pioneering fashionable and sexy swimwear for women of all sizes.

Brazil has a well-known beach culture – a culture celebrated over the years in popular pop tunes like ‘The Girl From Ipanema’ (http://en.wikipedia.org/wiki/The_Girl_from_Ipanema). The country has successfully turned its alluring beach culture into lucrative businesses,including fashion enterprises that have become global brands. The global hit brand of beach flip flops Havaianas (havaianas.com) is a good example.

Lehona (lehona.com.br) makes ‘Moda Praia’ – plus-size – swimwear for women. The swimsuits are specially designed to flatter larger body shapes and give women the confidence to go back to the beach. It is seeking to end the discrimination inherent in beach culture that favours the “thin, the rich and the chic.”

Body shapes have been changing in Brazil – as they have been across the world and the global South. While one cause is the global obesity crisis -ballooning as diets change with rising prosperity – there is also another, more positive cause: greater access to nutrition and increasing consumption of milk and meat tends to lead to larger body shapes. This has happened across the world and in many countries irrespective of the racial and ethnic background of the people. Norwegians in Northern Europe were once some of the shortest people in Europe and suffered from poverty and malnutrition. But, as food security increased and nutrition improved, they have over time become the second tallest people in Europe behind the Netherlands (The Changing Body: Health, Nutrition,and Human Development in the Western World since 1700).

For Brazil, malnutrition was widespread until recently. Records show 10 per cent of the country’s rural northeast in the 1970s was considered underweight.

The Brazilian statistics institute has found the past decade’s economic boom has had another consequence as well as lifting many millions out of poverty. It has found 48 per cent of adult women and 50 per cent of adult men are now overweight. This compares with 1985, when 29 per cent of women and 18 per cent of men were overweight.

Diets have changed in the intervening years. Rice, beans and vegetables are now in competition with potato chips, processed meats and sugary soft drinks.

And apart from nutrition and diet changes because of increasing incomes,there is also a cultural change. While the wealthy are more used to lifestyles with plenty of exercise, newly prosperous people do not necessarily have the fitness habit. One study found just 10 per cent of Brazilian teens and adults exercise regularly.

The Lehona brand has become a quick hit and receives many telephone calls and emails from would-be customers, its owners claim.

The Brazilian cultural expectation for women’s beachwear is skimpy, showing more rather than less. This prejudices women who do not have slim body shapes or who are not under 30.

Started in 2010 by clothing designer Clarice Rebelatto and run by her son Luiz Rebelatto, Lehona was started out of personal need.

“Honestly, the problem went way beyond just bikinis. In Brazil, it used to be that if you were even a little chunky, finding any kind of clothes in the right size was a real problem,” said Clarice Rebelatto, a size 10, to The Associated Press.

“And I thought, ‘I’m actually not even that big compared to a lot of women out there, so if I have problems, what are they doing?'”

The approach to the swimsuits is counter to many other brands targeting plus-size women. They are bold and emphasize the shape rather than try to cover it up and hide it.

The brand sells itself through specialty stores for large and tall women in Brazil. A bikini sells for around 130 reais (US $66).

“Some brands, they don’t want their image to be associated with chunky women= Only the thin, the rich and the chic,” Luiz Rebelatto told The Associated Press.

“We’re working from the principle that bigger women are just like everyone else: They don’t want to look like old ladies, wearing these very modest, very covering swimsuits in just black.”

The plus-size market has even been taken up by conventional Brazilian swimwear manufacturer Acqua Rosa (http://www.acquarosanet.com.br/site/). It released its plus-size line in 2008 and claims sales now account for 70 per cent of their total sales.

One woman frequenting Copacabana beach copacabana.info) in Rio de Janeiro is Elisangela Inez Soares. She is happy and confident with the new swim suits.

“It used to be bikinis were only in tiny sizes that only skinny girls could fit into. But not everyone is built like a model,” concludes Soares.

By David South, Development Challenges, South-South Solutions

Published: May 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Havana’s Restaurant Boom Augers in New Age of Entrepreneurs

Cuba, the Caribbean island nation known for its 1959 revolution and its tourism industry, is undergoing a shift in its economic strategy. The country has had heavy state control of its industries and business activities since the country adopted the official policy of state socialism and joined the Communist economic sphere headed by the Soviet Union.

When the Soviet Union fell apart in 1991, Cuba was pitched into an economic crisis as it lost access to preferential trade subsidies. This period is known as the ‘Special Period’ (http://en.wikipedia.org/wiki/Special_Period) and was marked by a severe reduction in access to fuel as supplies and subsidies from the Soviet Union disappeared. Some of the iconic images of the time include people abandoning their cars and turning to bicycles to get around, or using make-shift truck-buses packed with workers. Exports collapsed and slashed the size of the economy by a third.

Fast-forward to today, and tourism is booming. A record 2.7 million tourists went to Cuba in 2011, earning the country US $2.3 billion. And it is catering to this tourism market that probably offers the best near-term opportunities. With wages still just 50 per cent of what they were in 1989 many are taking up this new opportunity to become entrepreneurs.

To become an entrepreneur, Cubans need to apply for a pink identification card with their name and photo and the words “Autorizacion Para Ejercer el Trabajo por Cuenta Propria.” This gives authority “to work for your own account.” With the card, a person can start a business, hire staff and pay them what they like.

Cuba’s economy has been through many phases since the revolution, swinging between loosening up the ability of people to establish private businesses – and pulling back, restricting private enterprise. But since 2008, there has been a significant shift to encouraging greater private enterprise, entrepreneurship and the ownership of private property – once banned – to stimulate the economy.

“This is the most important thing to happen in Cuba since the revolution in 1959,” Juan Triana, senior fellow at the Centre for the Study of the Cuban Economy at Havana University, told The Sunday Times Magazine.

One visible sign of this change is the flourishing of what is called locally ‘paladar’ (http://en.wikipedia.org/wiki/Paladar), or privately run restaurants.

Paladares are usually located in a person’s home and staffed by family members. Their customers are a mix of tourists, expatriates living in Cuba, and Cubans with a high enough income to be able to afford restaurant meals.

The cost of a meal in these restaurants can run from US $40 to US $60 for two people.

Stocking the kitchen is not easy. Cuba experiences food shortages and there is still rationing for many. Basics like eggs can be hard to find. As for exotic, imported ingredients, many chefs rely on visitors to stock their larders.

Cuba will have to re-build its food sector to make this a lasting improvement.

The agriculture sector has declined and, where Cuba once provided a third of the world’s sugar harvest, the country now has to import half of its food supply. Measures are in the works to change this, with smallholder farmers now able to own 165 acres of land and sell their produce to private customers and hotels.

One restaurant owner, Héctor Higuera Martinez, told The New York Times:“You dream up a recipe that you’d like to make but then you can’t find the ingredients.

“One day you go out to get salt and there’s no salt. And I mean no salt,Anywhere.”

Martinez trained with a well-known Cuban chef and did a stint in Paris before returning to Havana. He has turned a 19th-century mansion into the restaurant Le Chansonnier (http://www.cubajunky. com/havana/restaurant_le_chansonnier.html) and decorated the walls with the work of local artists.

Martinez sees the paladares as a turning point in changing Cuba’s reputation for having boring food. “I believe we can play an important role in revolutionizing Cuban cuisine.”

Cuba is making the difficult shift from having an economy where 80 per cent of activity is in the state sector, to a mixed model balanced between private and public ownership.

Havana’s historic district offers tourists renovated colonial architecture mixed with shops, restaurants and bars. As a tourist strolls from the renovated district, they quickly come across the rest of Havana, which has beautiful buildings from the colonial period, 1950s American-influenced architecture with its fading retro signage, and more utilitarian Soviet-era architecture.

While charming and home to most of the city’s residents, much of it is rundown and crowded and in need of investment and renovation.

But things are changing fast. Oyaki Curbelo and Cedric Fernando use spices brought in by visitors for Bollywood, their restaurant in the Nuevo Vedado area (http://cubantripadvisor.com/destinations/havana-cityoutskirts/bollywood-paladar/). It has a small menu of Indian and Sri Lankan dishes, including shrimp curry with ginger and tamarind. The restaurant sources its curry leaves from a tree located in the Sri Lankan Embassy.

Another restaurant, Atelier (http://www.cubaabsolutely.com/articles/travel/article_travel.php?landa=70),located in a mansion in the Vedado neighbourhood, serves European Continental food and has a roof terrace letting diners enjoy the a view of the Havana skyline.

The restaurant Doña Eutimia (https://www.facebook.com/paladardona.eutimia) serves up Cuban favourites off the Cathedral Square. Specialties include a dish made of shredded beef with garlic, tomato, oregano and bay leaves.

At Vistamer (http://www.stay.com/havana/restaurant/4249/paladar-vistamar/),diners can enjoy garlic-laden lobster tails and lemon meringue pie. At the paladar Café Laurent (http://www.cubaabsolutely.com/articles/travel/article_travel.php?landa=71), the menu includes meatballs with sesame seeds and mustard in red-wine and tarragon sauce, according to The New York Times.

Habana Chef in the Vedado district (http://cubantripadvisor.com/destinations/havana-city-outskirts/habana-chefpaladar/) was started by Joel Begue and chef Ivan Rodriguez. Begue gained his experience in the state restaurant sector and took the opportunity to get a licence when the government offered them in 2011. He borrowed US $25,000 to start the restaurant and has been able to pay back half so far. His current success is prompting him to look into opening a second restaurant in the capital.

An enthusiastic Andrew Macdonald, who is looking for investment opportunities for a half a billion dollar fund held by the Escencia Anglo-Cuban firm, told The Sunday Times magazine, “Cuba is the top emerging tourism market in the Caribbean by a mile, and it’s in the top five emerging markets globally.”

By David South, Development Challenges, South-South Solutions

Published: May 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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Global South’s Rising Megacities Challenge Idea of Urban Living

 

The world crossed the threshold from being a majority rural world to a majority urban one at the end of the first decade of the 21st century. The reason for this is the fast-growing urban areas of the global South. And this is having a profound affect on how the world’s people live.

Across the global South, there are many examples of unchecked growth leading to squalor and poor housing conditions, and in turn to poor health and high rates of crime and disorder. Yet, the urbanization happening today across the global South is unprecedented for both its speed and its scale.

And, unlike previous surges in urbanization, it is this quality that is far more challenging for governments and policymakers.

Many countries and regions are experiencing highly stressed environmental conditions, with poor access to water and rising air pollution damaging human health, for example. But on the other side, there is also unprecedented change in technology and communications taking place. Every year, more and more of the world’s population gain access to 21st century communications such as smart phones and the Internet or ‘apps’ (applications), allowing the exchange of solutions and ideas at a rapid pace.

Many are weighing up the benefits and downsides of such an urban, dense world. Denser cities make it easier and more efficient to deliver services, and proponents see a rapid rise in living standards in these megacities. Others see wide-scale poverty and vicious fights over resources in crime-ridden, unhealthy packed megacities. These pessimists point to current conditions in many megacities across the global South.

No matter what perspective, many agree there has to be a cultural change in how people live and behave to make the megacities work.

The contrasting approaches taken by two giants of the global South – India and China – provides lessons and ideas.

The first big push from rural to urban took place in Europe in the 19th century. In 1800, just three per cent of the world’s population lived in cities. All the cities now seen as cosmopolitan hubs of economic and creative energy were just shadows of themselves prior to the 19th-century industrial revolution.

Lessons were learned from hard experience and one of the most important lessons was this: if a city is to grow – and grow quickly – then it must plan for this growth and put the well-being of people at the centre of this plan. This is critical to ensure public health is improved and that the transition to more dense living conditions improves human well-being, rather than making it worse.

A megacity is a city with a population greater than 10 million people (http://en.wikipedia.org/wiki/Megacity). The number of such cities will double over the next 10 to 20 years and many of these cities are in south and east Asia. By 2025, seven of the world’s top 10 megacities will be in Asia. Whole new cities are rising up that most people across the world have never heard about – yet.

One of the most rapidly urbanizing countries in the world is China. At the beginning of 2012, Chinese authorities announced the country was now a majority urban place, with most citizens living in cities. This population of 690.79 million people outpaced the rural population of 656.56 million people.

China is exploring a variety of solutions to making high-density city living work. Some of these solutions include creating multiplexes containing modern shopping, leisure, recreational and housing in one location. One example of this is The New Century Global Centre (http://cd.qq.com/a/20101018/000099.htm) in Chengdu, the capital of Sichuan. It is being called the world’s largest standalone complex. Chengdu is now a city of 14 million people and projected to be heading to 20 million people.

It includes design by noted Iraqi architect Zaha Hadid (zaha-hadid.com).

There are 1.5 million square metres of floor plans, two 1,000-room five-star hotels, an ice-skating rink, a 20,000 capacity marine park with 400 meters of artificial coastline and 5,000 square metres of artificial beach, including hot springs.

In contrast, the more chaotic and unplanned approach taken in India – also a country experiencing rapid growth in its cities – has come under intense criticism. Dr Rumi Aijaz of the Delhi-based Observer Research Foundation (observerindia.com) told The Guardian that Indian infrastructure improvements will be difficult to achieve: “Our urban areas are in a raw form.

All the basics are at a very low level. And the Indian state has been trying for a very long time to address this but a lack of capacity and endemic corruption has meant not much success.”

In 2001, India had 290 million people living in cities. By 2008, this reached 340 million. It is predicted this will reach 590 million people – 40 per cent of the population – by 2030. McKinsey and Company (mckinsey.com) believe by 2030 India will have 68 cities of more than one million people, 13 will have four million people and six megacities will be greater than 10 million people.

India faces an urban infrastructure crisis of epic proportions, McKinsey believes. Many millions will not have access to clean drinking water, adequate sewage, and will have to cope with poor transport.

China, on the other hand, has invested seven times more in urban infrastructure than India. And one example of how this investment pays off is Chengdu.

The fast-growing city of Chengdu’s mayor is trying to manage growth directly through the city’s policies. This involves managing the push and pull incentives driving people to cities and lifting the standard of living in the surrounding countryside.

Chengdu’s mayor Ge Honglin told The Guardian: “The first thing I did was to improve the conditions – schools, shops, garbage collection, the sewage system. We had to cut the gap between rural and urban areas. If people could have a brighter future in the countryside, they’d stay there. So we’re not seeing people swarm into the city= Instead there are people in the city considering moving to the country.”

“Chengdu is the only super-large central city that has narrowed the urbanrural income gap alongside rapid economic growth in China,” Ge said.

Hundreds of schools have been built surrounding Chengdu and partnerships made between rural and urban schools to help raise standards.

Chengdu is also pioneering new ways to address urban squalor with new information technologies. Patrols use mobile phones and cameras to document broken infrastructure and health and safety problems, and to locate and assist the homeless.

“You can barely see a begger in Chengdu,” said Gu. “We have a special system for monitoring them, and it works. Beggars are taken to the assistance centre, where they are given food and shelter and money to take them back to their home. If I say there are no more than 10 beggars on the street you will think there’s some sort of tyranny, but there isn’t. We’re trying to solve their problems.”

By David South, Development Challenges, South-South Solutions

Published: May 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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Frugal Innovation Trend Meets Global South’s Innovation Culture

There is a trend occurring across the global South that some are calling the next great wave of innovation. It has different names but many are dubbing it ‘frugal innovation’. Frugal innovation is basically innovation done with limited resources and investment. In short, innovation on the cheap but packing a big punch.

The phenomenon has several strands. One involves innovators and companies from the developed world setting up in the developing world and beta testing their inventions and innovations there. Another strand involves innovators in companies and governments in the global South increasingly targeting the so-called ‘BOP’ – bottom of the pyramid – market of the poor.

Another strand is focused on capitalizing on innovations for tackling the problems of the poor that are coming from the poor. Many of these innovations are improvised solutions. They may not be slick but they solve a problem.

And finally, there are companies and entrepreneurs in the global South taking their innovations to the markets of the wealthy, developed countries and finding a welcome reception from price-savvy consumers.

In the global South, frugal innovation is transforming lives – and it is finding its way into developed, wealthy countries too. It has been celebrated in the new book Jugaad Innovation: A Frugal and Flexible Approach to Innovation for the 21st Century (http://jugaadinnovation.com/) by Navi Radjou, Jaideep Prabhu and Simone Ahuja. The authors are innovation experts with a wide mix of backgrounds, from an academic to a Silicon Valley “thought leader and strategic consultant” to the founder of a marketing and strategy consultancy specialising in emerging markets innovation.

The authors propose “jugaad innovation” as a solution to the urgent need to innovate quickly and efficiently in a fast-changing world where little can be taken for granted. This breed of frugal innovation comes from India. Jugaad is a Hindi word (http://en.wikipedia.org/wiki/Jugaad) and basically means a work-around, improvised solution to a problem because it is cheaper. This is commonly used to describe makeshift vehicles people construct in India (http://wheels.blogs.nytimes.com/2011/03/25/jugaad-cheaper-than-a-nanobut-watch-for-splinters/).

As champions of the jugaad philosophy, the authors proclaim the old innovation paradigm is obsolete. The idea that throwing more capital and more resources at a problem will boost innovation, no longer works, they contend. Better results can come from being frugal and flexible. Being more creative allows for a fluid and improvised innovation culture to develop.

“In today’s interconnected world powered by social media, top-down R&D (research and development) systems struggle to open up and integrate the bottom-up input from employees and customers,” the authors say on their website.

“Jugaad on the other hand is flexible, frugal and democratic: it is often bottomup rather than top-down and involves a much larger number of people beyond those who are typically tasked with doing innovation in corporations. The strength of jugaad innovators lies in their ability to get more from less,experiment continually, and creatively engage people who are typically left out of the innovation process.”

And they have a message for the Western, developed nations. They must look to “places like India, China, and Africa for a new, bottom-up approach to frugal and flexible innovation,” if they want to experience continuing prosperity in the 21st century.

For global South inventors, entrepreneurs and manufacturers, this will prove a great opportunity. As debt-laden Western consumers deal with their lower spending power and incomes, they will be looking for products that cost less and yet tackle problems and improve their standard of living with minimal expenditure.

The Indian company Mahindra and Mahindra (http://www.mahindra.com/What-We-Do/automotive) sells its small tractors to American hobby farmers. The Chinese company Haier (http://www.haier.net/en/about_haier/haier_global/china/) has a range of frugal products that have become popular sellers. They include air conditioners, washing machines and wine coolers. Haier is so successful with these products it has been able to capture 60 per cent of the market in these categories in the United States.

Some of the hallmarks of frugal products are their efficient production, rapid development cycle, lower price point, and appeal to poorer customers.

The book argues that adopting a “jugaad” mindset will enable people and companies to innovate “faster, better and cheaper,” “generate breakthrough growth” and “outperform competition.”

“Jugaad innovation has three major benefits. First, it is frugal: it enables innovators to get more with less. Second, it is flexible: it enables innovators to keep experimenting and rapidly change course when needed. Third: it is democratic: it can therefore tap into the wisdom of otherwise marginalized customers and employees.”

“In contrast to the traditional structured approach to innovation, jugaad is inherently more customer-centric rather than technology or product centric.

Because jugaad innovators seek to solve a customer problem first and then develop a suitable solution, jugaad is more market-based than more structured approaches (that may be driven by the motivation to develop technology for technology’s sake) are.”

There are so many of these innovations and inventions happening, a culture has emerged to gather and document them and share them with others.

A good advocate of jugaad innovators in India is the Honey Bee Network (http://www.sristi.org/hbnew/). It has been building a database of grassroots innovation and knowledge (http://www.sristi.org/hbnew/augment_innovation.php).

But this dynamic innovators culture is not limited to India. Across Africa,information technology hubs and start-ups have been sprouting up. One of the more well-known is the iHub in Nairobi, Kenya (http://ihub.co.ke/pages/home.php) but there are centres of information technology innovation in Ghana, South Africa, Uganda and Nigeria.

One of the more outstanding and pioneering chroniclers of this frugal innovation culture in Africa has been the Afrigadget website (afrigadget.com).

It is packed with home-grown inventions. These include a young Kenyan boy using a rigged network of light bulbs to ward of lions from the cattle herd, a mobile phone security system for cars, and a home-made remote control toy car for children. Another great way to see this movement in action is at the Maker Faire Africa (http://makerfaireafrica.com/) which has been bringing together every year “handcrafters from Africa’s tiniest villages to her most expansive urban burgs”.

By David South, Development Challenges, South-South Solutions

Published: May 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=m5GYBgAAQBAJ&dq=development+challenges+may+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmay2012issue

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Battery Business Brings Tanzanians Cheap Electricity

Access to electricity is critical for making substantial development gains. With steady supplies of electricity, it is possible to read and study at night, to run modern appliances, to better use the latest information technologies and to work using time- and labour-saving devices. A home with electricity literally switches the light on modern life and gives a family huge advantages compared to those without electricity.

But there are two potential obstacles to providing electricity for the poor: one is just getting access to a steady supply; the other is paying for it.

In Africa, much of the population suffers from an electricity famine. The situation is worse than on any other continent: the proportion of people in Africa still without electricity is higher – and the rate of urban electrification is lower – than anywhere else. Four out of five rural residents in Africa live without electricity. The rate of rural electrification is also lower than on any other continent and the proportion of Africans who depend on inefficient traditional energy sources is higher than elsewhere (Desertec-Africa).

EGG-energy (http://egg-energy.com) is a Tanzanian company using an innovative business model to bring affordable electricity to rural communities.

Its co-founder, Jamie Yang, said Tanzania has a huge potential market for offgrid energy services. About 85 per cent of the population lacks access to electricity, a figure that rises to 98 per cent of the rural population.

EGG-energy says it is “dedicated to helping low-income consumers in sub-Saharan Africa gain access to clean, affordable energy, using a unique strategy based around portable rechargeable batteries.” The company has eight full-time staff based in their Makumbusho office, 6 kilometres north of Dar es Salaam, the capital.

It calls its system the “portable grid,” and it works like this: customers have a power system installed in their home that runs on brick-sized, re-chargeable batteries. The batteries are re-charged at a central charging station using power from the Tanzanian power grid, and sent to local distribution centres where customers can pick them up. Customers rent the batteries for a subscription fee, and they last about five nights in a home. When the battery is empty, the customer returns it, swaps for a fresh battery and pays a small swapping fee.

It is a brilliant solution to the problem of getting power from the main Tanzanian power grid to people’s homes. According to EGG-energy, most Tanzanians live within 5 kilometres from a power grid line. Yet the majority of the population lack access to electricity.

“After researching the energy situation in Tanzania and other countries with similar electricity access problems, it became clear that one of the primary problems was a lack of last-mile distribution,” explained Yang. “The only way to get power from the source into homes and businesses were power lines, and for the vast majority of rural Tanzanians, this was very much out of reach.

We saw situations in which power lines would pass right over large populations that were still using kerosene for lighting. We also saw that distributed generation like solar was finding only very limited markets because there was no share or sell power from that source without an affordable way to distribute the electricity.”

While EGG-energy is based in Tanzania, it hopes hope to expand across the developing world.

In order to develop an effective distribution network, EGG-energy partners with local store owners and delivery businesses to help with distributing the batteries. The batteries are based on those used in the airline industry and are light enough to be held in one hand.

Yang believes marketing is critical to the success of the technology.

“Don’t underestimate the cost of sales, marketing, and distribution,” he said.

“Many companies focus on the technology and in lowering the cost of the technology, while not paying enough attention to the gaps in the distribution channels.

“We have a sales team that communicates what we do through a variety of methods, including door-to-door sales, road shows and village meetings. We also make contact with the local political leaders and offer referral awards to our existing customers. Potential customers come to our charging stations to purchase the system and to connect to EGG.”

When a customer signs up with EGG-energy, a technician is dispatched to their home to make sure the electricity system is sound and effective. The company also sells energy-efficient lights, radios and mobile phone chargers to complement the electricity system. It’s a wise business model, since having a steady and reliable supply of electricity is a great motivator for customers to purchase other electric-powered appliances.

“We have technicians that have received vocational training through the Tanzanian system and technicians that we train ourselves,” Yang said. “We have very standardized electricity installations that are easy to teach, and have more experienced technicians that we rely on for troubleshooting and support.”

EGG-energy also makes the claim it can reduce a household’s energy expenses by 50 per cent as they make the switch from traditional batteries for radios and kerosene lamps for light.

EGG-energy calls itself a “for-profit company with a social mission.” It sees the provision of affordable electricity and energy as a spur for small entrepreneurs to build their businesses, boost educational opportunities through longer study time, and help with connecting families with the outside world.

It uses regular feedback with customers to make sure their service is actually cheaper than other options – a good habit for any business looking to build a lasting customer relationship.

“One of the key deficiencies in the energy supply chain is customer support,” said Yang. “We have seen multiple solar installations given by NGOs to community organizations that are no longer functioning because the user doesn’t have someone reliable to call or hasn’t allotted a budget to maintain the system.

“Customer support is a key component of last mile distribution, and something that EGG-energy is focusing on as an energy services company with a local, physical presence.”

By David South, Development Challenges, South-South Solutions

Published: April 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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