Mone Van Geit, WWF Belgium, KLIMOS, 20 March 2018, Brussels

Transcription

1 ECOmakala Meeting energy needs, fighting poverty and protecting the forests of Virunga National Park, eastern Democratic Republic of Congo Private sector development for the production and marketing of improved cook stoves and sustainable charcoal Mone Van Geit, WWF Belgium, KLIMOS, 20 March 2018, Brussels

2 Localization

3 - Forest degradation mainly due to charcoal production - Deforestation due to encroachment - Poaching - Oil concessions Threats Virunga NP

4 Contextual and underlying causes of the threat linked to charcoal production High population number, density and growth High poverty rate Poor access to electricty and lack of alternatives for energy, with energy wood as the basic fuel Politically unstable region with weak and pluralistic government systems Decades of conflict, presence of armed groups and ethnical tensions Unequal land use rights and a high competition for land ViNP as the major reservoir for the supply of energy wood Illegal charcaol business managed by & financing armed groups Unfavorable policy environment for stimulating the forestry sector and the production of sustainable charcoal

5 Standing forests & reforestation = development (><cutting forests) Stimulating and setting the basics for an enabling environment for businesses linked to reforestation, ecomakala production, efficient wood stoves, NFTP) in favor of decreasing pressure on the forest resources of the ViNP while contributing to socio economic development of the local communities living in the vicinity of the ViNP Addressing the supply side by providing an alternative for the illegal charcoal coming from the ViNP as well as the demand side by reducing charcoal consumption In a region like eastern DRC, nature conservation needs to go hand in hand with socio economic development, taking into account its relation to & impact on livelihoods Need for a more holistic, intersectoral & decentralized approach regarding the energy topic >> mix of renewable energy sources in which ecomakala has and will continue to have its place ECOmakala: vision/approach

6 ECOmakala: an integrated program

7 Private sector development for the production & marketing of efficient cook stoves ongoing - Objective: to reduce the consumption of firewood and charcoal by at least 30% for at least 75% of the households living in urban centers close to the Virunga NP - To overcome the existing barriers to widespread production and usage - Start: Goma

8 Barriers to the production and adoption of improved stoves Difficult access or poor availability of raw materials for production on a large scale Lack of operating capital in the craft associations to enable continuous production Insufficient number of trained craftsmen to achieve the necessary production capacity to meet a strong demand Theft of improved stoves in craft workshops, due to a lack of storage facilities No quality assurance Lack of awareness about the benefits of improved stoves Lack of awareness on the proper use of improved stoves

9 Initial phaze ( ) - Relying on existing capacity & experiences in the region, collaborating with small structures already in place - Quality assurance - Demonstration activities and usage of modern marketing techniques - Minimizing subsidies to the producers associations (PA s) since the start, integrating a business perspective

10 Initial phaze ( ) WWF Goma: 1 FTE in charge + contribution costs structure Financial & technical support to the PA s: raw material, training, performance tests, quality monitoring, marketing : year of development : accelerated production and sales

11 Initiatives supporting the accelarated prod & sales Market study Training to assure quality Initial limited subsidies to the PA s covering the raw material costs enabling them to constitute operating capital to assure a continuous production Intensive information campaigns on the radio for several months Redeployment of outlets of improved stoves to strategic locations in the city

12 Subsidies to PA s and constitution of operating capital Per Jiko Nguvu stove in US$ Cost raw materials 3,53 Cost labor (production) 1 Cost demonstration 1 activities & sales Total costs 5,53 WTP > selling price 5 Loss -0,53 Subsidy (for a limited 3,53 number of stoves) Available for constituting 3 operating capital

13 Subsidies to the PA s enabling them to (re)constitute operating capital Between 1,000 and 4,000 US$ per producers association When the reconstituted operating capital was drained at PA level, amounts of the subsidies provided were increased: between 6,000 to 8,000 US$ per PA But, a slower reconstitution rate was observed: - due to difficulties in selling a bigger amount of stoves within a specific period - due to the re-use of the reconstituated operating capital without declaring it => Need to develop a strategy to enable better use and control of the subsidies and the operating capital

14 Evolution 1st phaze In 2012, creation of a network of producers associations in Goma, REPROFCA: - each PA set aside 0,2 US$ /stove in order to contribute to the constitution of the operating capital - a subsidy of US$ was provided to REPROFCA to allow them the purchase of metal sheets of good quality and at a lower price >> from then onwards, no subsidies needed anymore More and more manufacturers abandoned the production of traditional stoves 3 years after launch: 6 out of 10 housholds used an improved wood stove (in 2008: 1/10) ¾ of the users use a Jiko Nguvu

15 Second phaze ( ) Quantity of IS sold from 2008 up to end 2016: approx of which in Goma In Goma (REPROFCA network): Scaling up by evolving to semi-industrial production by providing equipment (locally crafted machines) Preparations in view of evolving from a nonprofit making organization to an enterprise (limited liability company (LLC)) In Beni: Duplication of the improved stoves project and support to the creation of the Jiko Bora network of producers associations (2014)

16 Actual phaze (2017 ongoing) In Goma: Creation of GomaStove LLC In Beni ( DGD program): Up-scaling ( stoves) Evolution to semi-industrial production Preparations in view of evolving to an enterprise (based on Goma experience) DGD budget: approx (1 FTE, operating costs (support to production, monitoring, performance tests, marketing), structural costs WWF office in Goma & monitoring costs WWF BE)

17 Primary focus: production & marketing of improved stoves at a large scale (prod of 1000 to 3500 IS/month) Other foreseen activities: - marketing of «ecomakala» - production & marketing of briquettes GomaStove s shareholders: -REPROFCA - 12 private individuals - invested funds via shareholders: US$ GomaStove LLC

18 GomaStove LLC US$ loan made available by WWF Swiss Impact Venture initiative: repayable within 7 years at an interest rate of 3% US$ loan at 0% made available by WWF DRC (for stimulating the production & marketing of sustainable charcoal or écomakala) US$ co-funding by Elan (marketing)

19 GomaStove LLC Production of different models of improved stoves (ranging from 10 to 15 US $ and from 100 to 150 US$) Profit margins lie around 20 to 25% Jiko Nguvu stays the stove which is the most often wanted and used (5 US$) Profits are expected after 3 years if 3500 IS are produced and 3000 sold per month We will see what the future brings

20 Comparison of the Jiko Nguvu cost-revenue-profit structure prior and under GomaStove

21 Private sector development for the production & marketing of sustainable charcoal ongoing (DGD funding) - Support to the creation & organization of producers cooperatives - Actual DGD budget: euros (majority allocated to local partner DIOBASS) learn from the improved stoves project experience 1st quantities of ecomakala are planned to be sold through GomaStove

22 AKSANTI SANA!