Innovations Against Poverty
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1 Innovations Against Poverty Innovations Against Poverty Annual Conference & Awards 2012 Waterfront Congress Centre, Radisson Blu, Stockholm
2 AGENDA 9.30 Introduction and welcome Knowledge Exchange Workshops: Pyramid Distribution Channels that reach BoP markets Energy Solutions at the Base of the Panel session on how to translate innovation into commercial success -Sida -Elimentaire Sarl -Finaccess Hugo Sintes, Oxfam Enterprise Development Scaling up by opening up. Daudi Were, Ushahidi Coffee break Socio-Ecological Innovation Per Ohlsson, SRC Student competition presentation IAP Presentation of portfolio and summary of first 18 months Award Ceremony Mingle Lunch
3 Two groups, two topics Last mile distribution to clients at the base of the pyramid Clean energy innovation & solutions at the base of the pyramid
4 Distribution Challenge Consumers are dispersed, short of cash, risk averse, distant from major retail points: hard to reach. Product may be unfamiliar: market needs creation. Margins have to be kept low to be affordable and achieve scale. But rolling out typical distribution networks and marketing strategies or creating new ones can be expensive!
5 Distribution Channels How to create distribution channels that cross the last mile to hard-toreach consumers? While ensuring affordability and proximity for the consumer? While building market awareness and demand? At an affordable cost and manageable risk?
6 Project name Product Target market Proposed route to market Energy-related projects HiNation Hi-light: solar powered lighting and charging Households with mobile phones, businesses requiring lighting in Zambia Entrepreneurs selling mobile charging services; businesses requiring lighting. Possibly micro-finance institutions. d.light design, Inc. Solar powered lighting Rural families in Nigeria Innovative consumer-financing to allow gradual payback Sunny People mobile charging Rural mobile phone owners Rural entrepreneurs operating offering charging services Nuru Energy Lighting plus pedal-power recharging Rural households in India Village level entrepreneur Vagga till Vagga Biomass pellet stoves Zambian households To be clarified, probably local entrepreneur. Greenway Waste to heat converter BOP markets, India and Burkina Faso Local sales and assembly team GreenLaiti cooking fuel gel Zambian households, initially urban, later remote Networks of locally employed women and youth Cafédirect Online farmers platform, advice from other farmers Agriculture-related projects Farmers in Kenya Online platform Ignitia Weather forecasts via text Farmers in Ghana Sales to Farmers Associations and agricultural companies for yearly fee IDE Farm Extension Extension services and agri products Farmers in Mozambique Franchisees: independent Farm Business Advisors Health, sanitation, water, nutrition related projects MAKIT menstrual cup Poor women and girls in Kenya Network of women vendors Swedstream Portable ultrasound Pregnant women in poor areas of Tajikistan & Uganda Community health workers Bonzun Digital health information Pregnant women, doctors, midwives in China Internet platform Sanergy Toilets, sanitation Urban dwellers in Kenya Local franchisees Elime.ntaire sarl Nutrient=rich food additive Undernourished households, Madagascar Domestic companies producing school meals or babyfood; therapeutic food producers, local NGOs. Calimera Solokraft drinking water (bottled) Rural households Tbc: franchisor operates factory and distributes Financial sector projects Finacess Mobile financial services Mobile phone users (unbanked) in Nepal Mobile banking agents M-Birr Mobile money service Mobile phone users in Ethiopia MFI institutions, local grocers & agents Extract from the IAP Knowledge Exchange Report 2012
7 Project name Product Target market Proposed route to market Energy-related projects HiNation Hi-light: solar powered lighting and charging Households with mobile phones, businesses requiring lighting in Zambia Entrepreneurs selling mobile charging services; businesses requiring lighting. Possibly micro-finance institutions. d.light design, Inc. Solar powered lighting Rural families in Nigeria Innovative consumer-financing to allow gradual payback Sunny People mobile charging Rural mobile phone owners Rural entrepreneurs operating offering charging services Nuru Energy Lighting plus pedal-power recharging Rural households in India Village level entrepreneur Vagga till Vagga Biomass pellet stoves Zambian households To be clarified, probably local entrepreneur. Greenway Waste to heat converter BOP markets, India and Burkina Faso Local sales and assembly team GreenLaiti cooking fuel gel Zambian households, initially urban, later remote Networks of locally employed women and youth Cafédirect Online farmers platform, advice from other farmers Agriculture-related projects Farmers in Kenya Online platform Ignitia Weather forecasts via text Farmers in Ghana Sales to Farmers Associations and agricultural companies for yearly fee IDE Farm Extension Extension services and agri products Farmers in Mozambique Franchisees: independent Farm Business Advisors Health, sanitation, water, nutrition related projects MAKIT menstrual cup Poor women and girls in Kenya Network of women vendors Swedstream Portable ultrasound Pregnant women in poor areas of Tajikistan & Uganda Community health workers Bonzun Digital health information Pregnant women, doctors, midwives in China Internet platform Sanergy Toilets, sanitation Urban dwellers in Kenya Local franchisees Elime.ntaire sarl Nutrient=rich food additive Undernourished households, Madagascar Domestic companies producing school meals or babyfood; therapeutic food producers, local NGOs. Calimera Solokraft drinking water (bottled) Rural households Tbc: franchisor operates factory and distributes Financial sector projects Finacess Mobile financial services Mobile phone users (unbanked) in Nepal Mobile banking agents M-Birr Mobile money service Mobile phone users in Ethiopia MFI institutions, local grocers & agents The last mile distribution challenge cuts across many different sectors
8 Project name Product Target market Proposed route to market Energy-related projects HiNation Hi-light: solar powered lighting and charging Households with mobile phones, businesses requiring lighting in Zambia Entrepreneurs selling mobile charging services; businesses requiring lighting. Local Possibly entrepreneurs micro-finance institutions. d.light design, Inc. Solar powered lighting Rural families in Nigeria Innovative consumer-financing to allow gradual payback Sunny People mobile charging Rural mobile phone owners Rural entrepreneurs operating offering charging services Nuru Energy Lighting plus pedal-power recharging Rural households in India Village level entrepreneur Vagga till Vagga Biomass pellet stoves Zambian households To be clarified, probably local entrepreneur. Greenway Waste to heat converter BOP markets, India and Burkina Faso Local sales and assembly team GreenLaiti cooking fuel gel Zambian households, initially urban, later remote Networks of locally employed women and youth Cafédirect Online farmers platform, advice from other farmers Agriculture-related projects Farmers in Kenya Online platform Ignitia Weather forecasts via text Farmers in Ghana Sales to Farmers Associations and agricultural companies for yearly fee IDE Farm Extension Extension services and agri products Farmers in Mozambique Franchisees: independent Farm Business Advisors Health, sanitation, water, nutrition related projects MAKIT menstrual cup Poor women and girls in Kenya Network of women vendors Swedstream Portable ultrasound Pregnant women in poor areas of Tajikistan & Community health workers Uganda Bonzun Digital health information Pregnant women, doctors, midwives in China Internet platform Sanergy Toilets, sanitation Urban dwellers in Kenya Local franchisees Elime.ntaire sarl Nutrient=rich food additive Undernourished households, Madagascar Domestic companies producing school meals or babyfood; therapeutic food producers, local NGOs. Calimera Solokraft drinking water (bottled) Rural households Tbc: franchisor operates factory and distributes Financial sector projects Finacess Mobile financial services Mobile phone users (unbanked) in Nepal Mobile banking agents Local entrepreneurs Local entrepreneurs Local entrepreneurs Local entrepreneurs Local entrepreneurs Local entrepreneurs Local entrepreneurs Local entrepreneurs M-Birr Mobile money service Mobile phone users in Ethiopia MFI institutions, local grocers & agents The most common distribution solution so far is local entrepreneurs
9 Project name Product Target market Proposed route to market Energy-related projects HiNation Hi-light: solar powered lighting and charging Households with mobile phones, businesses requiring lighting in Zambia Entrepreneurs selling mobile charging services; businesses requiring lighting. Possibly micro-finance institutions. d.light design, Inc. Solar powered lighting Rural families in Nigeria Innovative consumer-financing to allow gradual payback Sunny People mobile charging Rural mobile phone owners Rural entrepreneurs operating offering charging services Nuru Energy Lighting plus pedal-power recharging Rural households in India Village level entrepreneur Vagga till Vagga Biomass pellet stoves Zambian households To be clarified, probably local entrepreneur. Greenway Waste to heat converter BOP markets, India and Burkina Faso Local sales and assembly team GreenLaiti cooking fuel gel Zambian households, initially urban, later remote Networks of locally employed women and youth Cafédirect Online farmers platform, advice from other farmers Agriculture-related projects Farmers in Kenya Online platform Ignitia Weather forecasts via text Farmers in Ghana Sales to Farmers Associations and agricultural companies for yearly fee Existing network IDE Farm Extension Extension services and agri products Farmers in Mozambique Franchisees: independent Farm Business Advisors Health, sanitation, water, nutrition related projects MAKIT menstrual cup Poor women and girls in Kenya Network of women vendors Swedstream Portable ultrasound Pregnant women in poor areas of Tajikistan & Uganda Community health workers Bonzun Digital health information Pregnant women, doctors, midwives in China Internet platform Sanergy Toilets, sanitation Urban dwellers in Kenya Local franchisees Elime.ntaire sarl Nutrient=rich food additive Undernourished households, Madagascar Domestic companies producing school meals or babyfood; Existing network therapeutic food producers, local NGOs. Calimera Solokraft drinking water (bottled) Rural households Tbc: franchisor operates factory and distributes Financial sector projects Finacess Mobile financial services Mobile phone users (unbanked) in Nepal Mobile banking agents Micro-finance Online platform Existing network Online platform Micro-finance M-Birr Mobile money service Mobile phone users in Ethiopia MFI institutions, local grocers & agents Other common distribution solutions include use of an online platform, a micro-finance network, or tapping into another pre-existing network.
10 Distribution Challenge Panellists: David Auerbach, Sanergy Toilets & sanitation services in Kenyan slums Lewis Temple, IDE Farm advice via franchisees / farm agents in Mozambique
11 Distribution working group Discuss and explore examples from Sanergy, IDE, and others. What are the main advantages and disadvantages of different approaches? What are the main challenges encountered when attempting distribution to BOP markets? What solutions are working?
12 Energy Challenge Inadequate energy access is a major burden on expenditure, time, productivity and health at the base of the pyramid. Spending on energy is disproportionately high; quality is low. Market opportunity! Plethora of new technologies have emerged, but patchy success. It s proving difficult!
13 Energy solutions? A host of technologies: biomass, biogass, solar power, pedal power, lpg for lighting, cooking, phone-charging, household and business power. Innovation up and down the value chain, from R&D to maintenance.
14 and biomass projects d.light design, Inc Nigeria Pay-As-You Go Solar Systems for low-income households Large Grant Eco-Fuel Africa Limited Uganda Bio-mass briquettes from agricultural char Large Grant Nuru Energy India A rechargeable cycle-powered device to provide affordable, clean and safe lighting solutions to rural households in India Sunny people Kenya Solar recharging for mobile phones provided by local entrepreneurs ONergy India Rural Energy Centres in remote rural areas to facilitate access to a variety of clean energy solutions (solar, biomass) Pamoja Cleantech Uganda Biomass powerplant for improved electricity access in rural areas GreenLaiti Zambia Gel based fuel. Distribution channels for new low energy products Greenway Burkina Faso, Burundi, India Converting waste heat from cooking into electricity for multiple low power devices HiNation Zambia Mobile phone charging and light through solar energy to a rural population Vagga till Vagga Tanzania and Zambia Replacing charcoal and fuel wood with biomass pellets, with an integrated fertiliser component. Waste 2 Energy Ltd. (W2E) Uganda Medium-scale commercial production of biogas from municipal waste Large Grant Large Grant Large Grant Small and Large Grant Small Grant Small Grant Small Grant Small Grant Small Grant Solar projects Biomass & biogass
15 Much harder than selling sachets of shampoo R&D, product design Manufacturing, supply chain Marketing Distribution Customer finance Maintenance & servicing Disposal and replacement The complexity of the energy value chain, from R&D to maintenance, disposal and replacement, is what poses so many challenges.
16 Energy Solutions Panellists: Johan Beckmann, Sunny People Mobile recharging equipment in Kenya Peik Stenlund, Pamoja Biomass plant
17 Energy Solutions Discuss and explore innovations in clean energy at the BoP How are clean energy products and supporting services being marketed, distributed and financed? What are the main challenges for entrepreneurs in these energy projects? What solutions are emerging?
18 Further information Practitioner Hub on Inclusive Business Visit the Know-How Themes including: Last mile distribution to the base of the pyramid Climate-friendly solutions
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