Turning point: how to take off the lighting products in the African market?

According to the forecast, Africa off grid lighting market annual sales growth rate will reach 40-50%, before 2015, about 500-600 million families in Africa will use high-quality portable (mainly solar lighting products).

The project "light up Africa" has accelerated the market penetration rate: in 2010 alone, the number of solar powered portable lights that led to a 70% increase in quality testing in Africa was increased by. More than 672000 of Africans have access to clean, safe and reliable lighting products to improve energy efficiency.

All participants in the value chain contribute their power to such changes.

Market situation

Departure from the start of the network lighting market was initially triggered by the LED donation activities, then the higher cost of LED products, and the technology is not perfect, can not meet the needs of consumers in the African market. Today, the market is driven entirely by corporate interests: innovative business models, unique marketing strategies and products tailored to consumer demand.

Manufacturers and distributors

Manufacturers and distributors began to design and sell high quality products to adapt to the bottom of the people of Pyramid lighting preferences. These lighting products longer life, better lighting effect. Of course, there are a lot of poor quality products in the African market, but the quality of lighting products continues to increase. "Illuminating Africa" promotes the development of quality assurance programs and encourages manufacturers, distributors and consumers to test and improve their product design and quality. At present, there are 8 products passed the quality test, and become a "light Africa" partner. These products are on sale in the African market, the retail price of between $22-97.

Consumers benefit from the high quality products that suit their needs. The characteristics of a new generation of lighting products to meet the specific needs of consumers, such as charging for mobile phones. In the past 5 years, LED, solar modules and battery prices have dropped significantly. The direct result is that low-income families can buy off the net products. Consumers have also learned to distinguish between high quality and inferior solar lighting products. For example: "lighting Africa" consumer education action training for more than 9 million of the rural residents in Kenya, they understand solar lighting products to fuel lighting advantages, so that they become rational consumers.

For African consumers, the main obstacle to clean, off grid solar lighting is higher upfront costs. Kerosene lamps may be expensive, dangerous, hazardous to health, and environmental pollution, but they do cost more, and the cost is small. A Kenya rural family, from the net every day in a kerosene lamp costs 20-50 Kenya shillings (about $0.25), but in the purchase of a Kenya to spend 2000 shillings (about $24.6) of high quality portable solar lamp still hesitate. Some organizations are starting to address this cash flow problem. In many African countries, solar lantern distributors to cooperate with some credit institution, for those who have to buy solar portable lamps consumer loans. This is a case for the solar lighting system to provide consumer finance program Developing a Model to Support Consumer Financing Schemes for Solar Powered Lighting Systems project. This project from November 2008 to June 2010 in Kenya, this project is also produced from the "lighting Africa market development competition" the winners of this competition is to provide seed money from the development and innovation of lighting products network. In Uganda, the "charge for a few hours of solar lighting" marketing model allows consumers to lease a set of solar lamps, in order to establish long-term consumer confidence in new products.

African governments are looking for ways to clean, off grid lighting as a rural community without electricity. Although it is not possible to replace the grid, clean off grid lighting products can provide an over - the - way solution, and can bring benefits to those without electricity. Many African governments have adopted this approach to complement and improve their rural electrification program. For example, "illuminating Africa" has signed a memorandum of understanding with Mali, Senegal and Ethiopia to support their efforts to improve the lighting of the rural population.

Small financial institutions and banks are starting to explore the potential for clean and off grid lighting in africa. Although Africa is considered to be a high risk market, it is changing rapidly. Before 2015, 65 million of African people will use portable solar lights. For financial firms, trade finance and cash flow limited consumers in the region are the main obstacles to the development of the market. Financial companies may not be familiar with portable solar lights, the lack of vigilance on the quality of investment products, the light of the African project and the Bank jointly developed a decentralized risk mechanism for distributors. In the past six months, Faulu, a major small financial company in Kenya and the "light up Africa" project, started to provide small loans for those who buy solar portable lights in rural areas.

Lighting Africa is the main driving force for the use of off grid lighting in sub Saharan Africa, as a neutral third party to illuminate the rapid growth of Africa's support for innovative enterprises in the supply chain. This is a contribution to the global market, which will have a huge impact on the lives of tens of thousands of people around the world.