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Monday
Jun222015

New Appetite for Nutritious Traditional Vegetables

 

 

Throughout the history of farming, around 7,000 species of plants have been domesticated. Yet everyday diets only draw on 30 percent of these plants and even this number has been going down as more people consume mass-market foods (FAO).

One consequence has been poor nutrition resulting from the reduction in consumption of high-vitamin foods, leading to stunted mental and physical development across the global South.

Once-rich culinary traditions have wilted and left many people not knowing what to do with formerly common vegetables and fruits, even if they can actually find them in markets.

Between 94,000 and 144,000 plant species — a quarter to a half of the world’s total — could die out in the coming years, according to an estimate by Scientific American (2002). Among them are vital food crops, threatened by a world in which climate change is causing more weather turbulence and diseases and viruses can spread rapidly and destroy crops.

This scale of plant loss risks leaving the world’s food security dependent on fewer – and more vulnerable – domesticated species.

Despite being rich in vitamins, minerals and trace elements, African leafy vegetables have been overlooked in preference for cabbage, tomatoes, carrots, and other imported produce. But with rising food prices at local markets, people are looking again at these neglected African vegetables. In East Africa, this includes indigenous plants like amaranth (http://en.wikipedia.org/wiki/Amaranth), African eggplant, Ethiopian mustard, cowpea, jute mallow and spider plant.

Like tomatoes and potatoes, some of these vegetables are members of the nightshade family — but unlike those imports, they are indigenous to Africa. According to Patrick Maundu of Bioversity International (http://www.bioversityinternational.org/), African nightshades provide good levels of protein, iron, vitamin A, iodine, zinc, and selenium at seven times the amounts derived from cabbage. The high levels of vitamins and micronutrients, he says, are especially important to people at risk of malnutrition and disease, particularly HIV/AIDS.

As the cost for basic foodstuffs have shot up during the global economic crisis, growing food has become an increasingly lucrative source of income. Estimates of the number of people doing this across Africa range from hundreds of thousands to millions.

In the bid to reduce the over-dependence on imported foods, urban farming is coming to the rescue and becoming an effective survival tactic in Africa’s fast-growing cities. Thousands of urban workers in Kenya’s capital, Nairobi, are supplementing their wages by investing in farms growing food.

Eunice Wangari, a nurse in Kenya, supplements her US $350/month salary with money earned from growing food. “For too long our country has been flooded with imported food and westernized foods,” Wangari told The Guardian newspaper. “This is our time to fight back – and grow our own.”

In Kenya, this type of agriculture usually involves an urbanite taking a stake in farmland outside the city. Relatives then do the farming. Mobile phones play a key role in this approach. The urban dweller can keep in touch with the farm by phone and receive updates on progress. They use their knowledge of urban food tastes to then adjust the crops and increase profits.

An accountant, James Memusi in Nairobi, is growing mushrooms in a spare bedroom in his home and then selling them to hotels and supermarkets, according to The Guardian. Miringo Kinyanjui is selling unrefined maize and wheat. Loved for its nutritional qualities, the flour is also flavoured with amarathan, a common green vegetable in Kenya.It is a clever way to make the most of the fact that many urban dwellers have some access to land in the countryside.

Pride is also returning to the topic of food, as people re-discover traditional foods and vegetables and fruits.

In Liberia, president Ellen Johnson-Sirleaf has launched a “Back to the Soil” campaign to get urban dwellers to farm and help the country lose its dependence on foreign food imports.

Liberia is trying to reduce the importing of rice and tomatoes.

In Zambia, the embracing of traditional foods has been fuelled by recipes used by a chain of popular restaurants. This appetite has driven demand for dried pumpkins, ‘black jack’ leaves and fresh okra.

The success of this revival of traditional foods has attracted big multinationals as well. Unilever Kenya ran a campaign in 2008 called ‘taste our culture,’ promoting African herbs and spices.

By David South, Development Challenges, South-South Solutions

Published: November 2009

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=JxSYBgAAQBAJ&dq=development+challenges+november+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsnovember2009issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Monday
Jun222015

African Countries Re-branding for New Economic Role

 

Africa’s diverse countries have been subject to years of negative stories in the media. The effect on global audiences has left many to cast the whole continent in a bad light and to know little about the individual countries and cultures.

This has damaged business confidence over the years. Just like products and people, nations need to have a strong and positive brand to do well in the global economy. Nation branding, the process by which countries alter people’s perceptions, has taken hold in Africa as the continent seeks to reverse the bad vibes.

South Africa is the continent’s leader in nation-branding, and countries including Nigeria, Kenya and Ghana are newly pursuing it. South Africa’s ‘Proudly South African’ (http://www.proudlysa.co.za/) campaign is known around the world.

The past decade has seen economic growth and rising tourism in many African countries. But the reality that many people around the world can’t tell the difference between most African countries, or have mostly negative impressions formed from news reports, means they are unaware of the positive developments and opportunities.

Author and researcher Simon Anholt, in his book Brand New Justice, claims Africa’s biggest obstacle to growth is the image of the continent itself. He argues that in a globalized world it is the responsibility of good governments to understand, measure, and exercise control over a country’s reputation if it is to prosper. However, he has criticized nation-branding if it is just a marketing strategy without substantial changes to how things are done in a country.

And it is clear the winners in nation re-branding will be the countries that prove on the ground that they are changing and living up to the fine words and catchy phrases.

In Nigeria’s Lagos State (www.lagosstate.gov.ng), Governor Babtunde Fashola – known as ‘Nigeria’s Obama’ – has launched a campaign to turn around the country’s long-standing reputation for corruption. Using the slogan Good People, Great Country, the city of Lagos has set itself ambitious goals that are dependent on significant increases in investment.

Lagos wants the city to be transformed into a place anyone can do business and be attractive to tourists.

The city has seen its population triple in the last 50 years and is on track to be the third largest city in the world by 2015. Thinking long term, plans are in place for the city to eventually be home to 40 million people.

Critics are blunt about their hostility to the re-branding exercise: “How do you re-brand a product when the content stinks?” asked Akinola M.A. on news website Mynaija News. “I can’t understand the meaning of this project when basic facilities like good roads, water and electricity are virtually not available.”

Supporters say the governor’s strategy is based on action, not words. Investment is going into a Rapid Bus Transit (BRT) system, traffic management, security, street lighting, beautification, and public-private partnerships to improve services.

“Nigeria cannot wait until it solves all her problems before it can stand to give serious thought to re-branding its battered image,” Nigeria’s information minister Dora Akunyili told Online Nigeria. “This is because our development is tied to our image. This negative perception has had destructive effects on our people and stymied our growth and national progress.”

Showing the power of trans-African approaches, the Wisdom Keys Group, a Nigerian company founded in South Africa (http://www.wkg.co.za/network.html) and working in 16 countries with partners, was contracted to do the campaign.

As the pioneer of brand power in Africa, South Africa’s International Marketing Council (http://www.imc.org.za/) heads a relentless campaign to engage an international audience and expatriate South Africans. It is a sharp, multi-media outfit tackling every aspect of South Africa’s domestic and international reputation. Products include e-newsletters, campaigns to lure back expert South Africans, a vast network of web content, and a highly targeted advertising and marketing campaign that lures businesses and tourists to the airport (via ads on taxis and in subways) and on to flights to South Africa.

For Kenya (http://www.brandkenya.go.ke/), the focus is on instilling pride within the country. As Kenyan media consultant Kwendo Opanga told the Nation Branding website, “it is not branding Kenya for foreigners that is difficult. It is branding Kenyans for Kenya and Kenya for Kenyans that is a tough call.”

“We even work with the school system to ensure that this is in the curriculum so that children are told that they need to start living dignified lives.”

Rwanda, despite experiencing a horrific genocide in 1994, is gaining attention for turning its image around. It has taken a different approach and has targeted building powerful networks of support around the world to make deals. As Rwandan government adviser Elaine Ubalijoro told FastComany, “How do you take a country that’s been through hell and bring it to security and prosperity? This is about healing, and this is about hope. We think it can be done.”

The Rwandan strategy is hinged on exploiting a global network of high-profile and powerful contacts that includes former British Prime Minister Tony Blair, Starbucks CEO Howard Schultz and Google chief Eric Schmidt. The results include a training programme where British civil servants work in Rwanda. Starbucks, meanwhile, has become one of the top purchasers of Rwandan coffee.

Ghana’s newly launched Brand Ghana office was set up to coordinate the development of an engaging national image for the country. Its head, Mathias Akotia, told Nation Branding: “We are in competition with other nations for attention, wealth, tourism and for the export of products. Country branding is about the management of our national identity and values in a way that will take us forward.”

Still in the early stages of re-branding, Ghana plans to hold a national summit to draft a plan and identify the country’s values and identity.

Branding is not merely slogans and catch phrases. Word-of-mouth can radically change a country’s image, and its prospects. The international magazine Monocle (www.monocle.com), a publication that prides itself on spotting the next big thing, has highlighted the East African nation of Burundi (http://en.wikipedia.org/wiki/Burundi) as the place to watch. The magazine thinks that by reinventing itself as a place of tourism, coffee and oil, with some of Africa’s best inland beaches and a wealth of art-deco architecture recalling Miami’s South Beach area, Burundi can distance itself from past conflict and become a must-see destination. At present, 80 percent of its earnings come from coffee and tea exports. It is hoping to become a tourist and transport hub with a new port, linking central and east Africa.

As the magazine says, “Bujumbura has got all the substance – and architecture – required to turn Burundi’s backwater capital into an African success story, and the country’s upcoming elections are a chance to create lasting peace after 15 years of civil war. But corruption could still derail the dream.”

The Nation Branding website (http://www.nation-branding.info/) (“everything about nation branding and country brands”) is the place to visit for all those interested in nation branding, country brands and how countries can improve their image abroad. Upcoming nation branding events can be found here: http://www.nationbrandingevents.com/nationbranding.

By David South, Development Challenges, South-South Solutions

Published: November 2009

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=JxSYBgAAQBAJ&dq=development+challenges+november+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsnovember2009issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Monday
Jun222015

Kenyan Mobile Phone Innovations

 

A couple of enterprising Kenyan engineering students are showing how mobile phones are an inventor’s dream. Their two inventions – one a way to re-charge phones while bicycling, the other an aid for catching fish – show the potential for adapting this technology to the needs of the poor.

The rapid spread of mobile phones across the South is giving rise to a flurry of invention and experimentation. While many of the new mobile phone-users do not have much money, they are often driven by poverty to invent solutions – and in so doing prove the phones offer many ways to generate income.

According to the International Telecommunications Union (ITU), Africa is the world’s fastest-growing mobile phone market, and the number of subscribers surpassed 300 million in 2008. The number of mobile phone users in the world passed 4 billion in 2008, and the fastest growth was in the South (ITU). The trend towards increasing development of inexpensive handsets means more phones will be reaching even more poor people in the future.

Kenya has seen blistering growth in mobile phone ownership: from just 200,000 users in 2000, there are now more than 17.5 million people with mobile phones out of a population of 38.5 million

As powerful as mobile phones are, they need electricity to keep working. The struggle to find a steady supply of electricity vexes many in the South, so finding cheap or free ways to recharge the phones represents a huge market opportunity.

While mobile phone recharging has become a business in its own right across the South, it is costly as well as time-consuming. Some people spend hours just getting to recharging stations.

To tackle this chronic problem, Engineering students Pascal Katana and Jeremiah Murimi of the Department of Electrical and Information Engineering at the University of Nairobi, Kenya (http://uonbi.ac.ke/departments/index.php?dept_code=HE&fac_code=32) have invented a device called the “smart charger.” It is powered by the dynamo that is standard issue with most bicycles sold in Kenya. Dynamos on the bicycle’s back wheel are little electricity generators that use pedal power to illuminate the bike’s lights.

It takes an hour to charge the mobile phone by peddling the bicycle: around the same time it takes to charge a phone using an electricity plug. A one-time charge for somebody can cost up to US $2 at a recharging service. But the smart charger sells for 350 Kenyan shillings (US $4.50) – around the cost of two charges.

“We both come from villages and we know the problems,” Murimi told the BBC.

“The device is so small you can put it in your pocket with your phone while you are on your bike.”

The smart charger has been assembled from bits and pieces the duo found: “We took most of (the) items from a junk yard,” Katana said. “Using bits from spoilt radios and spoilt televisions.”

To test the experimental device, workers at the university campus were recruited to have a go.

“I use a bicycle especially when I’m at home in the rural areas, where we travel a lot,” said campus security guard David Nyangoro. “It’s very expensive nowadays charging a phone. With the new charger I hope it will be more economical, as once you have bought it, things will be easier for you and no more expenses.”

Kenya’s National Council for Science and Technology (http://www.ncst.go.ke/) has now backed the project and the students are exploring ways to mass-produce the smart charger.

Another invention by Katana has adapted a mobile phone to improve fishermen’s success, according to Afrigadget (www.afrigadget.com). It amplifies the sounds made by fish as they feed. As the sound is broadcast outwards from the feeding, other fish are attracted to the same place, believing there is more food. A GPRS/GSM (http://en.wikipedia.org/wiki/General_Packet_Radio_Service) mechanism in the fishing net is triggered when there is enough fish in the net, and an SMS text message is sent to the fisherman letting him know it is time to haul in the net.

It looks like Pascal Katana can re-charge your phone and fill your plate!

By David South, Development Challenges, South-South Solutions

Published: September 2009

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=uXWUyfb4MacC&dq=development+challenges+september+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsseptember2009issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

 

Sunday
Jun212015

Kenyan Bank Helps the Poor and Gets Rich

 

Good quality banking services are a basic building block to rising incomes. Yet the poor across the South are often overlooked and denied access to savings accounts and loans.Many low-income people are openly discriminated against as ‘bad risks’ by banks, and denied the sort of banking services middle and higher income people take for granted. Yet it is a myth that the poor do not have money or do not wish to save and invest for their future or for business.

The so-called Bottom of the Pyramid (BOP) – the 4 billion people around the world who live on less than US $2 a day – are being targeted by a wide range of businesses. Indian business consultant and professor CK Prahalad (http://en.wikipedia.org/wiki/C.K._Prahalad) , the man who coined the term BOP, has gone so far as to claim this is a market potentially worth US $13 trillion, while the World Resources Institute puts it at US $5 trillion in its report, “The Next 4 Billion” (http://www.nextbillion.net/thenext4billion).

A Kenyan commercial bank has proven it is possible to target the BOP and become successful doing it; so successful that they have seen off foreign rivals and were voted Kenya’s third most respected company.

By offering Kenya’s poor people savings accounts and microloans, Equity Bank (http://www.equitybank.co.ke/) has captured 50 percent of the Kenyan bank market. It now has more than 3 million customers and 2.8 million account holders and opens 4,000 new accounts a day.

Its chief executive officer, James Mwangi, said Equity Bank built its success by doing the opposite of what other banks have done – it doesn’t target the middle and upper classes, but the “the watchmen, tomato sellers and small-scale farmers”.

The Kenyan banking sector in the past was dominated by foreign banks. But by investing in the 46 percent of the population who still live below the food poverty line, Equity has become the third most profitable bank in the country. Its approach was once considered odd. Most of the bank’s borrowers work in the informal sector and have few assets to use as collateral for the loans. So Equity uses what it calls ‘social collateral’. This includes a mix of measures: in some cases, account holders join together to guarantee a person’s debt. Even more unusually, women offer their matrimonial beds as security – it would be shameful for a woman to admit her bed has been taken to pay for the debt.

“For us it’s psychological security. Nobody wants to be excommunicated and lose their inheritance,” said Mwangi.

“By focusing on the previously excluded, Equity has revolutionized the banking sector,” James Shikwati, a director of Kenyan think tank the Inter Region Economic Network (http://www.irenkenya.com/), told The Guardian newspaper. “It has forced the multinational banks to change their business strategies.”

Started in 1984, the bank was still insolvent by 1994, when Mwangi joined as an accountant. Things were looking grim as Kenya’s economy was in a slump and foreign banks like Barclays were closing branches outside big centres.

Mwangi and other Equity Bank managers realized there were millions of low-paid poor in Kenya – all BOP – but who wanted to save and borrow but had nowhere to go.

“Banking was the only industry in Kenya led by supply rather than demand,” said Mwangi. “There was no ‘bottom of the pyramid bank’.”

While absolute poverty in Kenya has declined in recent years, inequality remains high. The population of 37 million people make on average a per capita income of US $580.

By 2003, as the economy picked up, Equity Bank gained 256,000 account holders. It now has 100 branches across the country and 500 automatic teller machines (ATMs). It uses armoured trucks to go into rural areas so that the people can receive banking services. While traditional banks require pay slips and utility bills as proof of a person’s address before letting them open an account, and charge high monthly fees, Equity only requires an identity card.

Within just one year, the bank saw the number of account holders jump to 600,000. Mwangi likes to say that the bank’s competition is the bed mattress, since most people have never had a bank account before. Most savers have around US $148 in their savings account.

The bank’s micro credit operation makes loans of less than US $7 and gives borrowers a few months to repay them.

The bank claims loan defaults are less than 3 percent on 600,000 outstanding loans – the banking industry average is 15 percent.

It keeps its transaction costs down by using the latest in information technology. These efficiencies enabled the bank to earn pre-tax profits of more than US $40 million in 2007.

Equity does face competition, as its success attracts mainstream banks into the BOP market.

In Africa these days, banking is hot: a South African research and analysis company BMI-TechKnowledge (http://www.bmi-t.co.za/) in a report identifies a boom in banking services across Africa. In particular, South Africa, Botswana, Namibia, Angola, Mauritius, Tanzania, Kenya, Ghana, Nigeria, Egypt and Morocco – all have seen surges in profit and services as a result of improving banking regulations and political conditions.

Mwangi isn’t worried, however, since the number of people still without bank accounts is huge. Equity Bank is expanding its operations into Uganda, Rwanda and Sudan.

Elsewhere, mobile phone banking in Kenya is proving highly successful. Equity has a service, but so does Safaricom with M-PESA (http://www.safaricom.co.ke/index.php?id=745). Customers can deposit, transfer and withdraw money using their phones. Over 4 million are now using the service.

By David South, Development Challenges, South-South Solutions

Published: January 2009

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=bbCXBgAAQBAJ&dq=development+challenges+january+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-january-2009-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Friday
Jun192015

Solar Power Bringing Light and Opportunity to the Poor

 

Meeting the South’s energy needs will be crucial to achieving radical improvements in quality of life and human development. It is estimated that 1.7 billion people around the world lack electricity (World Bank), of whom more than 500 million live in sub-Saharan Africa.

Africa’s greater global engagement and economic growth in the past few years has started to draw attention back to the continent’s dearth of reliable power sources and inadequate power infrastructure. With demand for electricity growing fast, it is people running small enterprises and organizations – especially in rural areas – who often get cut out.

Being able to see at night unleashes a vast range of possibilities, but for the very poor, lighting is often the most expensive household expense, soaking up 10 to 15 percent of income.

There’s a direct link between lighting and economic development. Each 1 per cent increase in available power will increase GDP by an estimated 2 to 3 per cent.

A reliable power supply helps people to work longer, important for small businesses, and this increases the amount of wealth that can be created. Lit streets are safer at night, and lure people outside to do business and seek entertainment. It makes it easier for students to study into the night, and in consequence improve their grades.

To take up this challenge, entrepreneurs are using different approaches across the South, to make solar power affordable and able to reach millions of poor people.

Marrying new lighting technology such as compact fluorescent light bulbs (CFLs) and light emitting diodes (LEDs) with solar power generation, opens up the possibility to bring clean, portable, durable, low cost, high quality lighting to Africa’s poor. These new lighting systems also come with huge health and safety benefits, compared to gas alternatives.

In Kenya, more than 80 percent of people lack access to the national grid and depend primarily on fossil fuels for their lighting needs, leading to respiratory diseases and environmental hazards associated with indoor air pollution.

Kenyan solar entrepreneur Charles Rioba of Kodesha Mwangaza – Rent a Light is impressed by the interest in solar power solutions. An expert in renewable technologies with 15 years’ experience teaching in universities, he “realized that to reach the lower end of the market, one had to design an affordable solution.”

“The biggest challenges faced are still affordability, and very little disposable income from the potential end users,” he said. “We are currently discussing with a number of micro institutions who have expressed interest on coming on board on rolling out the project.”

Rioba’s business provides rental solar-charged Powerpacks designed to make electricity affordable for the majority of urban poor, rural households and slum dwellers. The rental system allows the consumer to rent a fully charged Powerpack from designated distributors in the neighbourhood, without having to invest in an off-grid power source, such as a solar panel. The project will set up 100 distribution agents and 10 service centers for the Powerpacks to reach approximately 8,000 households within 18 months. In addition the Powerpack will be used for mobile charging and powering radios, and hopes to create a new market concept for portable electrical energy distribution among the poor in Kenya.

“My model targets to reach the lower end of the market,” Rioba said. “We are doing this by using existing businesses and groupings without creating new ones. We are also sourcing directly from the suppliers and we are working our project on numbers. In this way the margins are very low but aimed at achieving high usage hence return on investment.”

Rioba has just been awarded funding by the World Bank’s Lighting Africa initiative, which aims to provide up to 250 million people in sub-Saharan Africa with access to non-fossil fuel based, low cost, safe, and reliable lighting products and associated basic energy services by the year 2030. It uses equipment that can weather long-term use in remote and difficult areas, trains people to service the equipment, and comes up with commercially viable business models to make all of this affordable to the rural poor.

Rioba says that “for solar to be more attractive in Africa, there are a number of challenges. On the technology side, to make products which are both durable and affordable to the masses. Such new products such as LED lighting may ultimately reduce the size of the solar system and hence the cost.”

In Laos, the rental mode is also proving effective. Only 48 percent of the country’s 5.7 million people have access to electricity, and most turn to firewood and kerosene for light and energy. Over 74 percent of people live on less than US $2 a day and could not afford to buy a solar-power system outright.

The company Sunlabob rents solar-powered lanterns for prices beginning at 35,000 kip (US $3.80) per month, lower than the 36,000 to 60,000 kip (US $4.00 to US $6.60) per months households typically pay for kerosene fuel. After 10 hours’ use, the lanterns are recharged for a small fee from the village’s central solar-power collection facility. All fees go towards maintaining the central solar recharging station. The equipment is rented to a village-appointed Village Energy Committee, which sub-leases it to households at prices it sets. Rent covers all costs, including replacements and operational servicing costs. In the event of breakdowns, rent payments are suspended until repairs are made.

Sunlabob has installed over 5,600 solar power systems since 2000 in over 450 villages and is also working in Cambodia and Indonesia.

“Sunlabob really works well with local people,” says Bouathep Malaykham, head of the Lao Government Rural Electrification Program. “Because they are a private company they can make things happen quickly.”

In Bangladesh, more than 230,000 households are now using solar power systems thanks to the government’s Infrastructure Development Company Ltd. (IDCOL), giving rise to opportunities for a whole new generation of entrepreneurs to make use of this new power supply for the poor. IDCOL is run by the Ministry of Finance, and is on course to install 1 million Solar Household Systems (SHS) using solar panels by 2012. The Bangladeshi government is hoping to bring electricity to all its citizens by 2020 – meaning this is now a prime time for entrepreneurs specializing in providing energy efficient products to the poor.

The Executive Director of IDCOL, Ehsanl Haque, told a recent press conference: “SHS system, containing photo voltaic panels, battery, charge controller, solar lamp and switch, is a convenient mode for supply of power for small electrical loads such as lights, radio, cassette players and black and white TV.”

It doesn’t provide electricity 24 hours a day, but Haque says even with a few hours of electricity available each day, the rural economy is being transformed. “Now they are using SHS for income-generating activities and working hours have been increased for small businessmen, weavers, tailors, hairdressers, and makers of handicraft items.”

Among the many benefits of the electricity has been the ability to listen to radio and watch TV: an activity women reported made them feel safer at night.

By David South, Development Challenges, South-South Solutions

Published: September 2008

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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