·Kasakula will be Malawi’s first community with 100% universal solar access — how do you see this milestone influencing the broader off-grid solar market in the country?
It will open up new business opportunities for the local entrepreneurs who will be critical to the nationwide scale. It will help the Government to have a proven model that can be scaled to reach all non-electrified households. It will shift consumer expectations of a service from sector players; consumers will feel in control, protected, and be in a position to demand quality service, which is not the case today. Speed of deployment is unprecedented; the model can connect masses of people within a very short period of time, which is what we need to achieve the SDG7 target within the timelines.
·SolarAid’s Energy-as-a-Service model has gained international recognition — what competitive advantages does it offer compared to conventional solar distribution approaches in rural African markets?
Total commitment to connecting everyone and giving people the opportunity to a flexible payment plan that aligns with their income stream. Removal of the access barrier of down payment, which restricts people from accessing products when they do not have enough disposable cash. Bottom-up approach of the business model development process, which captures consumers’ voices and increases buy-in from the first day. Speed of deployment, enabling the reach of masses within a short period of time.
·With Malawi’s government considering a nationwide rollout, what market opportunities and challenges do you foresee in scaling this model to other regions?
Opportunities
- Emerging startups as new service companies
- product supply for the manufacturers
- new jobs for the youth created in the rural communities
- after-sales services – recycling and general waste management business opportunities
- sales of other peripheral products such as mobile phones, radios, TVs, etc
- New business lines, such as in Agriculture, Transport, and Clean cooking, are emerging due to huge customer data being gathered and analyzed
Challenges
- Issues of forex is likely to be the major obstacle
- Development of standardised operating systems and tools that enable consistency in quality of service and customer satisfaction
- Financing to import adequate volumes needed to reach scale
- Consumer education to drive mindset change from paying for the hardware to paying for service
·How can this success story in Kasakula serve as a template for similar markets across Africa, where off-grid demand is high but income levels are low?
Knowledge sharing with key stakeholders, Development of the how-to-guide materials, which must be made publicly available to help others to either adopt or adapt. Creation of a sector-wide independent platform to coordinate activities focusing on scale beyond Malawi. Development and sharing of open source tools and templates for operations.
·Considering global renewable energy trends and policies, how might partnerships with international bodies like GOGLA help accelerate market adoption in Malawi and beyond?
Visibility of the model to a wider group of sector actors for adoption in Malawi and regional/global scale. Influence Governments to adopt and commit public financing to accelerate the deployment of the solution, Alignment of the objectives of the business model with Government development priorities policy alignment, and influence investors to join the movement and raise the capital needed. Independent public reporting on how the model is performing, which will increase the credibility of the model to Governments, Investors, and other Development partners.
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