New Apps Make Driving and Travelling in Egypt Easier, Safer

Mobile phones are ubiquitous across the global South. They have spawned whole new business opportunities and changed the way people solve problems and find solutions.

Sub-Saharan Africa is now home to approximately 650 million mobile phone subscribers, more than the United States and the European Union (World Bank).  A recent World Bank report estimated mobile phones led directly to the creation of 5 million jobs in Africa in 2012, contributing to seven per cent of Africa’s gross domestic product (GDP).

Mobile phones have also led to contests and challenges, set up to spark further innovation in this area and spur the development of so-called “apps”, or applications, to run on these electronic devices.

These prizes encourage and reward useful innovation that directly tackles the problems and challenges of the South.

In Cairo, Egypt – a city notorious for some of the worst traffic congestion in the world – many have been trying to find smart solutions to the gridlock. The World Bank says in its Cairo Traffic Congestion Study that the annual cost of congestion in Cairo is estimated at up to US $8 billion. This is four per cent of Egypt’s gross domestic product (GDP) – four times the impact on national GDP experienced by other comparable large cities. The study found that at least 1,000 Cairo residents die each year in traffic-related accidents, more than half of them pedestrians. And rapid growth in the city is making it ever-harder to get on top of the problem.

Rising traffic congestion is a problem around the world. In the United States, traffic jumped 236 per cent as the population grew by 20 per cent between 1982 and 2001 (IBM).

The IBM Commuter Pain Study conducted in 2011, ranking the emotional and economic toll of commuting in 20 international cities, found that the commute in Beijing is four times more painful than the commute in Los Angeles or New York, and seven times more painful than the commute in Stockholm.

Commuter pain leads to productivity loss as people lose time stuck in traffic and fuel is wasted as engines idle in traffic jams – not to mention damage to the environment from the increased pollution.

According to the World Business Council for Sustainable Development, 95 per cent of congestion growth in the coming years will be in developing countries. Even in developed countries like the United States, in 2000, the average driver experienced 27 hours of delays (up seven hours from 1980) (MIT Press). This ballooned to 136 hours in Los Angeles.

Developing countries are seeing vehicle numbers rise by between 10 and 30 per cent per year (World Bank). In economic hotspots, growth is even faster.

The Cairo Transport App Challenge (https://www.facebook.com/CairoTransportAppChallenge) is a contest aimed at taming the city’s traffic chaos. It is hosted by the Technology Innovation Entrepreneurship Center (TIEC) (http://www.tiec.gov.eg/en-us/Pages/default.aspx) and is organized by the World Bank in collaboration with others.

The contest’s press release says it aims to connect transport and urban development experts with volunteer technology communities to build “applications to address pressing transport challenges in Cairo through leveraging the new information and communication technologies (ICT) – such as mobile phones, smartphones and GPS-enabled devices – as well as the talent of Egyptian software developers and innovators.”

The first winner of the US $3,000 in prize money is a mobile phone app that helps drivers get help on the road and with car maintenance.

Users can use the Belya app to find the best routes, and to get help if their vehicle breaks down. The app is essentially a portable virtual car mechanic. It uses Global Positioning System (GPS) technology to locate service centres, which are then contacted when somebody needs help. The app gives details to the repair shop on what is wrong, the date and time.

“It is also linked to the General Traffic Administration, to provide quick and regular updates of the traffic situation,” according to a statement from Egypt’s Ministry of Communications and Information Technology, which awarded the prize.

The content’s second prize was won by E-mokhalfa (http://www.emokhalfa.com/emokhalfa/),which helps communities create safer roads by using peer pressure to make drivers behave better. Third place went to the app called “Where is my bus?” (https://twitter.com/AutobeesyFeen). It helps passengers find bus stations, routes, journey times and all mass transport options on their mobile phones.

By David South, Development Challenges, South-South Solutions

Published: March 2013

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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Diaspora Bonds to Help Build up Infrastructure

Many people are aware of the significant role played in global development by remittance payments from migrant workers working in the wealthy North to the global South. But they may not be aware of the significant sums migrant workers have saved in bank accounts in these wealthy countries. Across the global South, efforts are underway to lure these sums back to home countries to boost development efforts.

As the hard-earned money migrant workers save sits in bank accounts in wealthy Western countries earning very low interest rates – a consequence of the current global economic crisis – so-called “Diaspora Bonds” seek to offer a way to earn good interest returns and help build up home countries at the same time.

The money can help developing countries build facilities they need but cannot afford: roads, bridges, railways, water supplies, power, sewerage, street lighting. It is a way to bypass dependence on foreign aid and borrowing from aid agencies or the general marketplace.

US $501 billion in remittance payments was sent in 2011, of which US $372 billion went to developing countries, involving some 192 million migrants or 3 per cent of the world’s population (World Bank). On top of this, migrants from developing countries have saved an estimated US $400 billion – and these funds are being targeted by those selling diaspora bonds (The Economist).

The idea is being promoted by the World Bank and draws on the successful experiences with bonds for Israel and India. Both countries have long histories of turning to diaspora communities to raise funds through bonds.

The bonds work by playing on patriotism and the genuine desire of migrants to want to see conditions improve back home. As the thinking goes, patriotic investors are more likely to be patient. This is critical because many countries cannot offer rapid profits and a quick pay off – something sought by short-term investors obsessed with the ups and downs of the stock market. They are also sterner investors, less likely to run away when the going gets tough. Their local knowledge means they will not panic and pull their investments when bad news hits the headlines. And probably best of all, they don’t mind if the local currency declines in value – that just means they can pick up a local house on the cheap or buy a business for even less money.

One business working in this area is Homestrings (homestrings.com): Motto “Come make a difference.” An Internet platform offering diaspora bonds, it is run by founder and chief executive officer Eric-Vincent Guichard. An American born to a Guinean father and American mother, he spent 20 years growing up in rural Guinea and knows the country well. He also heads up GRAVITAS Capital Advisors, Inc. (gravitascapital.com), founded in 1996, which advises governments on how to manage their assets. A graduate of HarvardBusinessSchool and a former World Bank scholar, he is based in Washington, D.C.

According to its website, Homestrings works like this: “It all starts with your ability to scan through a catalog of projects, funds and public-private partnership opportunities that focus on regions you come from or that you care deeply about. Each of these projects and/or funds is detailed in a Fact Sheet that is set up to help you do the due diligence needed to make an investment decision. Then, Homestrings directs your investment into the selected project or fund, with the help of our administrator.”

Investments are monitored on a monthly or quarterly basis and are selected for their socio-economic impact and investment profitability.

The website has a personal “Dashboard” that allows investors to use the site to vote for or against investments and make comments. And Homestrings will promote the investments that receive the most support and positive comments.

To make an investment, a potential investor selects a fund or project that matches their interest. They read the Fact Sheet and choose. The funds are then passed on to the investment bond and an interest percentage or dividend is paid at regular intervals. Investors can keep track of the investment through the personal Dashboard on the website.

Fact Sheets are organized by geographical region, industry focus, and development theme. Investments “cover infrastructure, health care, education, transportation, and small and medium sized enterprise finance – all critical areas of economic growth.”

The Homestrings Catalog of investments includes the governments of Kenya, Senegal, Ghana, Nigeria and also AFREN PLC, which is looking to finance oil and gas exploration off the coast of Nigeria.

Dramatic improvements in global communications in the past five years have also made it much easier for everyone involved to stay in touch and for bond promoters to identify and target potential customers.

The World Bank is currently advising countries on how to run diaspora bond schemes. Kenya, Nigeria and the Philippines have schemes in the works, according to The Economist.

Ethiopia has announced the “Renaissance Dam Bond” (http://grandmillenniumdam.net/). Proceeds will be used to fund the construction of the Grand Renaissance Dam, the largest hydroelectric power plant in Africa, able to generate 5,250 megawatts. Ethiopia tried a similar scheme before with the Millennium Corporate Bond to raise funds for the Ethiopian Electric Power Corporation (EEPCO). This did not entirely meet expectations and sales were slow. Reasons given for this included a perception that EEPCO could not meet payment expectations when the hydroelectric power plant was operating. There was also a lack of trust in the government and its financial stability and the overall political risks.

The second attempt at a bond is believed to better thought through. It comes with an aggressive marketing and awareness-raising campaign aimed at the diaspora, and it starts at US $50, making it more affordable for more people.  It can be used as collateral in Ethiopia – an advantage for those wanting to do business back in the home country.

For potential investors, it is worth remembering that bonds are debts that are rewarded with regular interest payments and paid back at the end of the bond term. They are not risk-free and the risk can lie either in the sovereign solvency of the country or in the investment.

The secret to a successful bond issue is to keep up good relations with the diaspora; countries that are too oppressive could find themselves short of people willing to take up the offer.

By David South, Development Challenges, South-South Solutions

Published: October 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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Hip-driven Pump Brings Water to Parched Fields

Finding ways to increase agricultural productivity is key to expanding food supplies and making farming pay. With the world’s population continuing to rise and becoming more urban, there is a pressing need to improve both the quantity and quality of food supplies.

The many small-scale farmers across the global South – and their high levels of poverty – demonstrates the urgent need to change the way farming is done.

Based on Food and Agricultural Organization (FAO) census data, it has been estimated that some 525 million farms exist worldwide, providing a livelihood for about 40 per cent of the world’s population. Nearly 90 per cent of these are small farms with less than 2 hectares of land (Nagayets, 2005). Average farm sizes around the world run from 1.6 hectares in Africa to 121 hectares in North America.

Small farms occupy about 60 per cent of the arable land worldwide and contribute substantially to global farm production. In Africa, 90 per cent of agricultural production is derived from small farms (Spencer, 2002).

One social enterprise is pioneering the development and selling of innovative farming tools for these small-scale farmers to increase their efficiency and make their lives better and more profitable. The MoneyMaker Hip Pump is a lightweight irrigation tool designed to be used by anyone, but aimed especially at women farmers. It helps to increase the amount of water that can be pumped into a field during the dry season. To date, the makers of the pump, Kickstart (kickstart.org), claim to have sold 190,000 pumps. It can irrigate up to 0.40 hectare of land.

Kickstart, which calls itself a non-profit promoting technology and entrepreneurism in Africa, develops and markets simple agricultural tools for Africa’s rural poor so they can improve their businesses. The company estimates it has helped 600,000 people since it was founded in 1991.

The MoneyMaker Hip Pump was launched in stores in 2006 and received a sales and marketing push in 2008. It sells for US $30 and weighs 4.5 kilograms. Kickstart says the pump’s most effective attribute is its simple pivot hinge. This pivot hinge allows the user to combine their body weight and strength from their legs with sheer momentum to power the pump rather than straining upper back and shoulder muscles – something that is very hard on farmers’ bodies and leads to repetitive strain injuries that shorten a farmer’s effective working life.

The pump can pull water from 7 metres and push water up a field for 14 metres.

Kickstart says that by early 2012, it had sold 32,037 pumps.

Reporting in a paper for the World Bank, Vincent Nnamdi Ozowa found smallscale farmers needed five things that will make a big difference to their productivity: better access to information on new methods, scientific advances and timely market updates; better education and improved literacy rates;access to credit; better marketing; and better technology that minimizes drudgery and improves efficiency.

In 2011, Worldwatch Institute’s State of the World report found small-scale agriculture could be key to tackling world hunger and poverty. It urged a move away from industrial agriculture and towards small-scale farming in sub-Saharan Africa, believing it could make big gains by being more efficient and reducing waste.

Kickstart has found communities are receptive to the idea of using the pumps and building agro businesses.

“These are people who are already entrepreneurs, so it is not like we are sensitizing them; they are people who are trying to find ways to make money,” Kickstart Tanzania’s Anne Atieno Otieno told AllAfrica.com.

“When we meet them in the communities we talk to them about the value of irrigation versus relying on rainfall. Most of them are used to having to wait for the rain. At the time we were working with the Super MoneyMaker pump, which is a bigger, more expensive pump. They asked if we could make a low entry pump, which we passed on to our tech deputy and that is how we came up with the MoneyMaker Hip Pump.”

It is part of a range of products Kickstart makes to aid small farmers become more productive (kickstart.org/products).

KickStart believes that self-motivated private entrepreneurs managing smallscale enterprises can play a dynamic role in the economies of developing countries.

These entrepreneurs can raise small amounts of capital (US $100 to US $1,000) to start a new enterprise. KickStart then helps them to identify viable business opportunities and access the technologies required to launch the new enterprises.

Kickstart also uses something called a Mobile Layaway service to make it easier for farmers to afford a pump. This service lets farmers pay off the cost of the pump in small instalments by mobile phone. The farmer can choose how large or small the instalment is according to their means.

“Speaking to the women, and going out into the field and speaking with farmers, we identified a major obstacle – purchasing power, the ability to buy the pump. In Africa, in the field, the pump is a capital item,” Otieno said.

“They really have to organize themselves to be able to save for it. And so when we were speaking to the farmers, many were asking us, ‘Can you come up with a credit facility?’ or some system whereby they could purchase the pumps, because many of them wanted the pump but they were not able to afford it.

“The program works through a mobile phone service, MPesa (http://www.safaricom.co.ke/index.php?id=250) … so the farmers are able to save money, and send money through that program.”

Kickstart recently received an award from the US State Department and the Rockefeller Foundation for “transforming agriculture for women by harnessing technology and spurring entrepreneurship.”

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.  

Follow @SouthSouth1

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Pakistan Simplifies Job-matching Services

An innovative job-matching service from Pakistan is trying to bring together people who normally live separate lives. It is eliminating the middlemen who gouge both employers and employees for job-seeking fees and opening up a new world of opportunities for the poor.

Connecting employees and employers is a problem being compounded in countries all over the world by the global economic crisis, as people retrench to their own communities and stick with known and trusted contacts. While this is a natural response to crisis, it is highly damaging to economies and social mobility.

Pakistan (http://www.tourism.gov.pk) has had to contend with multiple challenges in the last few years. It has been hard hit during the global economic crisis. It is also experiencing stress from the ongoing conflict resulting from terrorism and the nearby war in Afghanistan. And 2010’s floods devastated large swathes of the country’s crops.

As the World Bank noted in its Pakistan Economic Update June 2011, “Pakistan continues to face significant political challenges in achieving durable development. The domestic security situation as a result of (the) campaign against terrorism is a direct and indirect tax on the costs of economic activity and the achievement of the kinds of social stability required to promote a supportive environment for businesses.”

The World Bank estimates that 30 percent of the population lives below the poverty line, although Pakistan’s finance ministry has recently estimated it to be 43 percent.

“Due to the global financial crisis, many businesses in Pakistan either scaled down their operations or had to close down,” said Asim Fayaz, one of the people behind Pakistan Urban Link and Support, or PULS (http://www.puls.pk).

“As a result, the income of the informal sector was also affected because many of them became unemployed. In turn, the supply surplus meant the job market became more competitive, further affecting their income growth.”

Job-hunting is time-consuming for everyone involved in any country, worse still during an economic downturn. The hunt for a job or for the right employee is part and parcel of a dynamic economy. The more dynamic and fast-evolving an economy, the more employees will move around looking for the best deal and the more employers will need to seek out people with the latest skills and best attitudes to stay competitive. A fluid labour market is a good thing if a country wants to be competitive.

PULS bills itself as a “Telecommunications Software Platform for Job Search and Networking between the Working Poor and Educated Elite of Pakistan” (http://www.puls.pk). It was a semi-finalist in the 2011 Dell Social Innovation Competition (http://www.dellsocialinnovationcompetition.com/ideaView?id=08780000000DaC6AAK).

“Conventionally, the informal sector workforce has found employment primarily through personal connections,” explains Fayaz. “In cases where that doesn’t work, they approach employment agencies and get enlisted. These employment agencies, behaving as middle men, charge both the employer and the employee upon making a connection. PULS removes the need for the middle man. Employees sign up on this platform themselves. Employers will only be charged a very small amount if they wish to contact a listed employee. If the employee is actually hired, PULS does not find out about the transaction and does not make anything off it.”

As an e-marketplace accessible through SMS and Web, PULS matches the working poor to the educated elite of Pakistan. It is hoped it will boost the creation of jobs in Pakistan and help in raising incomes. PULS defines working poor as skilled but undereducated domestic workers (cooks, drivers, guards, gardeners, tailors, etc.), independent laborers and self-employed craftspeople.

Pakistan has a population of over 169 million (World Bank, 2009). Of that, PULS estimates there are 20 million people who are literate and have access to mobile phones but not the Internet.

Then there is the elite, defined as educated employers and formal-sector professionals. They live in extended family households and employ one or more domestic workers. Of this elite group, around 10 million are regular Internet users.

The much larger group of working poor have little access to the resources found on the Internet or in employment databases. Because of this, most turn to word-of-mouth and informal connections to the elite for new jobs and upward mobility.

These groups have traditionally failed to meet. The educated elite, with their access to online search-engines and classifieds, only ever see other people engaged with the formal employment sector. Those in the informal sector are left out of the loop in accessing these better quality jobs with better pay.

Fayaz says PULS enables jobseekers to “get access to more employment opportunities outside their network.”

“They will be able to contact those potential employers directly without going through a middle man,” he said. “Most importantly, this service will be free for employees.”

He says the platform could potentially be used for other transactions, such as buying and selling cars, electronics and other equipment.

PULS has built a multi-use, “mobile-to-web software platform explicitly designed for semi-literate mobile phone users and fully literate Web users.”

The first version, PULS 1.0, has an SMS (short message service) interface in the Urdu language and enables domestic employees to register, create a profile, and communicate with employers. All an employer has to do is pull up the PULS 1.0 website. The employer creates a profile as well, searches for potential employees, and sends SMS messages to employees through an anonymous gateway.

“In addition to employer-to-employee broadcasting, PULS will also (eventually) provide the informal sector a simple means to self-promote and broadcast custom messages back to employers,” Fayaz said. “Presumably PULS will eventually offer a multi-use tool for advertising, networking, job search, and even financial transactions, all via SMS-to-Web.”

PULS is a non-profit entity developed by a team from The Fletcher School, Tufts University in the United States (http://fletcher.tufts.edu) and aims to be financially sustainable as it grows and the service stays affordable for its users. Employees can use the system for free as long as they pay standard SMS charges, while employers must buy credits. To get things started, employers are given 1,000 credits for free. PULS is also offering premium services such as mass-communication surveys, market research, and advertising.

Developing the technology didn’t prove difficult in Pakistan, Fayaz says.

“We have a large of pool of skilled workers equipped to develop such platforms, very high cellular penetration and one of the lowest SMS rates in the world!”

Fayaz advocates taking an organic approach to developing a new technology like PULS.

“Setting up the technology is just one part of the picture,” he said. “You should identify a problem, look at how it’s currently being addressed, see how you can improve, research on how it’s being addressed in similar circumstances elsewhere (in our case, India works best), design your solution with just the main use cases addressed, and aggressively roll out.

“You should remember that you have to make revenue at some point but don’t let it be a hurdle in the short term. Don’t jump back to the drawing board if the first few people find your service hard to use. Also, you may want it to look fancier than Facebook but remember, they also took time getting there!”

By David South, Development Challenges, South-South Solutions

Published: August 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.  

Follow @SouthSouth1

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Solar Sisters Doing it for Themselves: Tackling African Light Famine

A social enterprise is seeking to capture the power of the sun to bring light and economic opportunity to women in Africa. Using a direct-marketing distribution system, it sells solar lamps and lanterns to some of Africa’s remotest communities. Solar Sister (www.solarsister.org), launched in Uganda in 2010, is hoping to do for power generation what mobile phones have done for communication in Africa: make a technological leap to a model of grassroots power generation, rather than waiting for large-scale power schemes to eventually reach the poor and rural.

More than 1.7 billion people around the world have no domestic electricity supply, of which more than 500 million live in sub-Saharan Africa (World Bank).

Solar power is being creatively used in many countries to tackle energy poverty and give women, in particular, viable sources of income. In India, whole villages are already using solar energy and improving their standard of living. Various companies and projects are selling inexpensive solar appliances – from cooking stoves to lanterns and power generators – across the country.

A billion Africans use just four percent of the world’s electricity (The Economist). Energy poverty is already harming further economic growth and development gains. With Africa’s population expected to double to 2 billion by 2050, the gap between people’s needs and the power available is stark: in Nigeria, out of 79 power stations, only 17 are working (The Economist).

A report by the International Finance Corporation called the sub-Saharan solar market the largest in the world – a market of 65 million would-be customers, who could access off-grid lighting over the next five years (IFC). The report anticipated high growth rates of 40 to 50 percent for anyone entering the market, with less than one percent of the market currently being served.

Being able to see at night unleashes a vast range of possibilities, such as being able to work or study later. But for the very poor, lighting is often the most expensive household expense.

As Solar Sister founder Katherine Lucey points out, households “rely on kerosene lanterns and candles for light. They spend up to 40 percent of their family income on energy that is inefficient, insufficient and hazardous. Widespread use of kerosene has an adverse impact on local air quality as well as on global climate change.

“Poor lighting, smoke and rudimentary lanterns are responsible for a large number of infections and burn injuries. Within the household, women are responsible for kerosene purchases and use – in order for new clean energy technology to be adopted at the household level, women have to ‘buy in’ to the technology.”

And this is the challenge: to find an affordable – and sustainable – way to bring electricity and energy to people living in remote and rural areas. These are places that face stark options: to remain off-grid and energy poor, or to abandon their communities and join the many millions across the global South on the march to urban and semi-urban areas in search of income and opportunity.

Lucey says that could be “a recipe for disaster”.

“In a country like Uganda, with a population of 32 million people, it is not possible to have them all move to Kampala to access electricity,” she said. “It would overburden already stretched infrastructure and services and disrupt the social and economic structures of an entire population. In the end, it can challenge the stability of entire nations.”

The Solar Sister direct-marketing model works like this: micro-investment capital of US $500 is invested in one Solar Sister Entrepreneur and she receives a ‘business in a bag': a start-up kit of inventory, training and marketing resources. As her own boss, she has a strong incentive to succeed. She uses the money to purchase a consignment of lamps or lanterns, which she then sells, encouraging people to replace kerosene lamps with solar lamps: healthier, safer and better for the environment. She is encouraged to use her existing networks of family, friends and neighbours to reach rural and hard-to-reach customers.

The Solar Sister, after succeeding in selling the first consignment of lamps, then receives training in marketing and inventory and business skills. She can then move on to be a team leader and recruit other Solar Sisters. She earns a commission from the lamp sales, which help to improve her ability to pay for healthcare, education and food for her family. She then repays the cash for the lamps and the cycle starts all over again with a new consignment.

The model will sound familiar to many: it is what has built successful marketing machines like the famous all-women’s make-up and beauty products seller Avon (www.avon.com). Or the other famous direct marketing behemoth, Amway (www.amway.co.uk).

The Solar Sister model is heavily dependent on the success of word-of-mouth to grow:

“What we have found is that the women are the best distribution system for bringing new technology to rural households since they sell through their trusted networks of family, friends and neighbours,” Lucey said. “They use the lamps themselves, and then talk passionately about the benefits: the better light, the money they save by not having to buy kerosene, the amount of time their children are able to study, the cleaner air and safer environment for their kids.”

According to Lucey, the business model “brings solar technology right to the women’s doorstep. The Solar Sister business model developed as a grass-roots solution to the gender-based technology gap. Women make up 70 percent of the rural poor, but are often left out ‘in the dark’ when it comes to technology solutions.”

It is still early days for Solar Sister, which has been in operation for just over a year and now has 107 Solar Sister Entrepreneurs working in 10 teams reaching 34 communities in three countries – Uganda, Rwanda and Sudan. Lucey says the goal is to build a network of 1,500 female entrepreneurs in Africa over the next two years, benefiting over 1 million people.

Apart from the business model and the new technology, there is a radical concept at the heart of Solar Sister: to replicate for electricity generation the distributed and rapid growth that has been seen with mobile phones. In just five years, the availability of mobile phones in Africa increased by 550 percent.

“Distributed energy, such as solar, puts the investment in energy generation rather than transmission, and breaks the problem into smaller, achievable, components that do not have to wait for political processes for implementation,” explains Lucey. “It allows for the possibility that people can solve their own problems rather than wait for government or NGOs to come solve their energy problems for them. Distributed solar has the potential to leap-frog the 20th century grid-based solution, much like mobile phones have done in the telecom industry.”

One of the solar lanterns for sale is manufactured by D.Light Design. Their newest lantern model is called Kiran (http://www.dlightdesign.com/products_kiran_global.php). It sells for US $10 and provides up to eight hours of light on a full battery, its manufacturers say. D.Light Design calls it the “$10 Kerosene Killer” because it believes it has the right mix of price and technology to trump the need to use kerosene lanterns. The lantern gives off a white light powerful enough so people can read, study or do domestic tasks. A solar panel sits on top of the lantern, which is shaped like a drinking thermos with a large carry handle on top.

Other solar lamps/lanterns have been burdened by cost, ranging in price from US $15 to US $30: a prohibitive price for many poor people.

The ubiquity of mobile phone payments in Africa has made it much easier to transfer funds back and forth between the entrepreneurs and Solar Sister. And since its launch, Solar Sister has learned how to change and adapt to local conditions.

“These women are the experts in their local communities of what works and what doesn’t,” Lucey said. “Solar Sister Voila (http://www.solarsister.org/voila-uganda) decided to visit the roadside market stalls at night when shopkeepers were burning kerosene lamps for light. She got their instant attention with the high brightness of her solar powered lamps.

“Solar Sister’s mission is to bring more and more women from the veils of smoke, darkness and anonymity to the forefront of a clean energy revolution.”

By David South, Development Challenges, South-South Solutions

Published: April 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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