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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Bolivia Grabs World Media Attention with Salt Hotel

 

Tourism is a great way to attract foreign currency to a country and build local economies, especially in remote or isolated places. But the catch is finding a way to get people to go the distance and come and visit and spend their money.

In a global South twist on the well-known Ice Hotel in Sweden (www.icehotel.com) – a hotel entirely built out of ice – enterprising Bolivians have built a hotel out of salt.

A Bolivian hotel in the middle of the world’s largest salt flats has found a clever way to attract tourists to this remote holiday destination: build the hotel entirely out of salt, right down to its furniture.

The South American nation is one of the poorest in Latin America, and its income distribution is among the region’s most unequal. Bringing in foreign currency and attracting more tourists can help to reduce this poverty. According to the World Travel and Tourism Council, travel and tourism will contribute 2 percent to the country’s gross domestic product (GDP) in 2011. Around 75,000 jobs are directly dependent on the tourism business in the country and this is projected to rise to 96,000 jobs by 2021.

And it is a good business to be involved in: “Travel and tourism is one of the world’s great industries, providing 9 percent of global GDP and 260 million jobs; it drives economic growth, business relationships and social mobility,” according to David Scowsill, President and CEO of the World Travel and Tourism Council.

The Hotel de Sal Cristal (http://www.hosteldesal.com/?L=2), near Colchani, hosts guests who come to visit the salt flats of Salar de Uyuni (http://en.wikipedia.org/wiki/Salar_de_Uyuni). They are believed to store 50 to 70 percent of the world’s lithium supplies and an economic boom has started in the area. The striking and blinding white salt flats were featured in the James Bond film “Quantum of Solace.”

The hotel’s unique construction from rock-hard salt hewn from the salt flats is working to encourage tourists to stay longer in the area during their holiday. Before, they would just take a quick excursion on to the salt flats before moving on to their next destination.

The Hotel de Sal Cristal is built using blocks of salt cut from the surrounding flats. The architectural design is inspired by the ancient Chinese balancing philosophy of Feng Shui (http://en.wikipedia.org/wiki/Feng_shui). Following the principles of the philosophy, it faces the sun and balances both masculine and feminine energies. Shaped like three coca leaves, the feminine side, this balances with the more masculine side reflected in the salt flats, the hotel’s website claims.

The hotel has 27 rooms with hot water and heating. – and beds made of salt. In the dining room, people can sit on chairs made of salt and eat at salt tables. The rooms are wall-to-wall salt, bright and white.

The hotel’s pool is surrounded by sand-like salt.

The hotel’s ‘Resto-Bar’ offers views of the salt flats and promises it will “allow the cosmic energy…” to flow freely.

The menu offers llama meat and risotto of quinoa (http://en.wikipedia.org/wiki/Quinoa) alongside traditional Bolivian dishes, salads and soups and Bolivian-themed treats.

The hotel has an ‘astronomic observatory’ for star gazing, making the most of the low level of light pollution on the flats.

One of the hotel’s tour guides, Pedro Pablo Michel Rocha from Hidalgo Tours (http://www.salardeuyuni.net/), told the Daily Mail newspaper: “I love it when visitors come to this place for the first time.

“They can’t get over the fact that everything is made out of salt and I’ve even seen a few people lick the furniture to make sure!

“It is a wonderful experience to come somewhere like this where they’ve used the natural materials available to create something like a hotel.”

The salt flats, formed from prehistoric lakes, have a salt crust hard-baked by the sun with a pool of salty water underneath which is rich in the rare element lithium. Lithium (http://en.wikipedia.org/wiki/Lithium) is sought-after for its use in things like re-chargeable batteries for mobile phones, computers and electric cars.

The area’s economy has boomed since 3.4 million tons of lithium – believed to be half the world’s supply – was discovered underneath the salt flats.

The power of tourism to alleviate poverty has been documented by Caroline Ashley, co-author of Tourism and Poverty Reduction: Pathways to Prosperity (http://www.earthscan.co.uk/?TabId=92842&v=497073), after extensive research on tourism’s impact on poverty in countries across Africa andAsia.

She argues that “tourism can fight poverty.”

“Note, we say ‘can’, not that it always does. The share of spending by tourists within a destination that reaches poor people can vary from less than 10 percent to a high of 30 percent,” Ashley told BusinessFightsPoverty (http://www.businessfightspoverty.org).

“When it works, international tourism is actually a very good way of channelling resources from rich to poor. In destinations as diverse as hiking on Mount Kilimanjaro in Tanzania, business tourism in Vietnam and cultural tourism in Ethiopia, between one quarter and one third of all in-country tourist spending accrues to poor households in and around the destination.”    

Ashley said a successful tourism strategy needs to focus on “the 4Ps: pay, procurement, persuasion and partnership.”

“Pay a living wage to local employees; take a hard look at procurement and potential to source locally … persuade – or at least inform – your clients how to take up opportunities to spend in the local economy…” and build a partnership with government to integrate tourism into the local economy.

And it looks like the hotel can’t get more connected to the local economy than being made of the very salt that surrounds it.

By David South, Development Challenges, South-South Solutions

Published: November 2011

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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African Ingenuity Attracting Interest

 

The tide of science and innovation from the South is grabbing the world’s attention. While the big giants of India, China and Brazil are well-established hubs of invention, it is the once-overlooked continent of Africa that is generating current excitement. The atmosphere can be equated to the flush of innovation in the late 19th and early 20th centuries, as inventors tackled the budding new technologies of the combustion engine, flight, electricity and radio waves. These days, it’s the challenges of development, rapid urbanization and finding ways to ‘hack’ (http://en.wikipedia.org/wiki/Hack_%28technology%29), like adapting existing  technology such as mobile phones or bicycles to new purposes.

That previous period of invention had a spirit of pioneering and making-do, of dreams and adaptability triumphing over poverty, and it laid the path for many new companies to sprout up and create wealth and jobs for millions. At this August’s Maker Faire Africa gathering (http://makerfaireafrica.com/) in Accra, Ghana, African pioneers in grassroots innovation offered inspiring inventions.

The rapid changes happening in African countries – especially the tilt to having a larger urban population than a rural one – means there is an urgent need to boost incomes.

Handled right, these grassroots inventors could grow to become part of the already expanding South-South trade, which grew by an average of 13 percent per year between 1995 and 2007, to make up 20 percent of world trade.

Inspired by the US magazine Make (http://makezine.com/) – a do-it-yourself technology magazine written by makers of computers, electronics and robotics – the first Maker Faire gathering was held in 2006 in the San Francisco area of the United States.

The African Maker Faire modelled itself on this approach and has tapped into Africa’s well-entrenched do-it-yourself development culture. It went looking for more inventors like those celebrated on the website AfriGadget (http://www.afrigadget.com/), with its projects that solve “everyday problems with African ingenuity.” The Faire works with the participants to share their ideas and to find ways to make money from their ideas.

The Faire in Accra ran in parallel with the International Development Design Summit (http://2009.iddsummit.org/), which came to Ghana from its home at the Massachusetts Institute of Technology (http://web.mit.edu/) in the United States. Its aim was to bring technology closer to “potential end users of the projects.”

“It is part of the revolution in design that aims to create equity in the distribution of research and development resources by focusing on the needs of the world’s poor,” organizers said.

This spirit of African invention is about breaking the perception that invention is a purely Northern phenomenon that requires complex and expensive materials. African ingenuity is about taking whatever is available and tackling common problems. It is an empowering approach that celebrates local initiative and seeks to find ways to turn these inventions into sustainable incomes.

“What’s different about African mechanics and gadgets is that it’s generally made with much fewer, and more basic, materials,” said Afrigadget founder Erik Hersman. “Where you might find a story on how to make hi-tech robots at home in Make, its counterpart in Africa might be how to create a bicycle out of wood. No less ingenuity needed, but far more useful for an African’s everyday life.”

The African Maker Faire featured a wide range of solutions, from a low-power radio station to a bicycle-powered saw and a simple corn planter.

Shamsudeen Napara, from northern Ghana, brought a US $10 corn planter that looks like a pill dispenser to help speed up crop planting. He also has invented a cheap shea nut (http://en.wikipedia.org/wiki/Shea_butter) roaster. These inventions are cooked up in his metal fabrication shop which builds tools for agricultural use. Shea nut processing is a lucrative task for women in Northern Ghana. Napara’s roaster costs US $40 and reduces the energy and time to process the nuts. He has also made a soap cutter using piano wires and guitar screws.

Bernard Kiwia, a bicycle mechanic from Arusha, Tanzania, is a pioneer working with windmills, water pumps, mobile phone chargers and pedal-powered hacksaws – all made from old bike parts.

Hayford Bempong, David Celestin and Michael Amankwanor from Accra Polytechnic (http://www.accrapolytechnic.edu.gh/), built a low-power radio station. Made from scrap electronic parts and an antenna from copper pipe, the radio was put straight to use to broadcast announcements at the event over a range of a few thousand metres.

Suprio Das, Killian Deku, Laura Stupin and Bernard Kiwia brought a method to produce chlorine from salt water and other common materials. It can then be used to purify water. Their method can clean vast quantities of water using no moving parts (avoiding breakdowns). It does this by dripping chlorine into the water until a level has been reached, and then the purified water is released. By using a 5 litre bag of chlorine, and a US $3 valve, 100,000 litres of water can be purified.

Electricity was also being made using low-cost batteries from aluminum cans and plastic water bottles. Applying salt water as an electrolyte (http://en.wikipedia.org/wiki/Electrolyte), electricity is created by the oxidation of the aluminum can – a cheaper approach and less toxic than commercial batteries.

A group called Afrobotics (http://www.afrobotics.com) gave a presentation to encourage more African students to go into engineering, science and technology. Afrobotics is set up as a competition to “fuel engineering, science, innovation, and entrepreneurship on the African continent, utilizing robotics.” They have some excellent videos of African robots in action: http://www.afrobotics.com/videos.

By David South, Development Challenges, South-South Solutions

Published: August 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.  

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Small-scale Farmers Can Fight Malaria Battle

Malaria is one of Africa’s biggest killers. Each year globally 300 to 500 million people are infected, and around 1 million die from the disease (theglobalfund). Ninety percent of malaria deaths occur in sub-Saharan Africa – mostly to children under the age of five. The disease costs African countries US$12 billion a year in lost gross domestic product.

Malaria is a parasitic disease – the parasite plasmodium – transmitted by mosquito bites. Symptoms include fever, headache and vomiting. Internal bleeding, kidney and liver failure may follow and can result in coma and death.

The most common and effective treatment, recommended by the World Health Organization, is artemisinin-based combination therapies, known as ACTs. ACTs have low toxicity, few side effects and act rapidly against the parasite. Research shows that artemisinin remedies cure 90 percent of patients within three days.

But there are far fewer doses available than people who need them. WHO has claimed the quantity made available by pharmaceutical companies falls far short of the more than 130 million doses required to combat malaria throughout the world.

And ACTs are very expensive to deliver: in just one country, Tanzania, providing such therapy for three years would cost US $48.3 million. Every year, this would account for 9.5 percent of Tanzania’s health budget, and 28.7 percent of yearly spending on medical supplies: a six-fold increase in budget for malaria treatment (Malaria Journal 2008, 7:4).

But a cheap alternative to the expensive pill form of the treatment is being piloted across Africa. It involves the drinking of a tea made from the bushes of the artemisia plant. Artemisia annua is an annual shrub and the active ingredient in the pills (artemisinin). It is native to China and Vietnam and has been used for 2,000 years to treat fevers.

Bushes cultivated by farmers in Kenya, Malawi, Tanzania, Zambia, Zimbabwe and Mozambique under the supervision of the World Agroforestry Centre in Nairobi, Kenya, are helping to bring down malaria rates without the long wait for the pills to arrive.

The leaves are boiled and made into a tea. Drinking the tea gives a high enough dose of artemisinin in the blood to cure malaria. Helen Meyer, a nurse operating nine mobile health clinics in rural Mozambique, is using the bitter tea made from the dried leaves. Even in treating drug resistant malaria, she has found the artemisia tea effective: “If you drink the tea, you feel better after the first day. Other medicines take a few days.”

A special hybrid of artemisia, A-3, is used because it is adapted for warmer climates. The wild variety grows to only five centimetres in the tropics, but A-3 grows to three metres and packs 20 times more artemisinin. It is also highly economical: thousands of plants can come from a single stem.

The daily adult dose of anti-malaria tea just needs five grams of dried A-3 leaves in one litre of water. The tea is drunk every six hours for seven days. Each plant produces 200 grams of dried leaves, and a thousand shrubs can cure 5,700 people. Since it is a cheap cure, money can be spent instead on other things. Farmers are also able to supplement their income by growing the bushes. And the dried leaves have long-lasting power: even after three years the leaves retain close to a 100 percent of their artemisinin.

Access to authentic artemisinin is critical: it is estimated 16 percent of malaria medicines in Kenya are counterfeit. Elsewhere, the proliferation of counterfeit anti-malarials substantially raises the risk of the emergence of resistance to artemesinin combination therapy, the last truly effective treatment against malaria. Past misuse of other malaria drugs, such as chloroquine in the 1980s and sulphadoxine/pyrimethamine in the 1990s, resulted in the malaria parasite becoming resistant. Hundreds of thousands of people in malaria-prone areas may have died as a result.

The World Agroforestry Centre, recognizing potential problems with artemesinin monotherapies, is working to combine it with indigenous herbal remedies made from other anti-malarial trees, producing a herbal combination therapy (HCT).

“I used to grow fruits and beans here,” said Charles Kiruthi, a Kenyan farmer, to the IRIN news service. “but I will get a better return from this plant. No pests attack it, and until harvesting time it requires very little labour.”

“I expect to get a good return, and I am also very happy to be helping fight malaria,” continued Kiruthi. “I recently lost two friends to the disease, and my child gets sick with malaria sometimes.”

By David South, Development Challenges, South-South Solutions

Published: July 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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