Empower girl micro-franchisees with business opportunities and bring light to urban slums in Nairobi.
Kenya has a population of almost 40 million people, approximately 34 million (85%) of whom do not have electricity. Kenyans predominantly use kerosene as a source of lighting. In 2008, the UN estimated that Kenyans spend approximately 20 Kenyan Shillings (KES) per day on kerosene ($0.25 USD/day or $7.50 USD/mo.), and roughly 5-10% of their annual income.[1] Since 2008, the Kenyan Shilling has devalued by more than 20% and the global price of oil has also increased, and local incomes have not kept pace with devaluation driven inflation therefore it can be estimated that off-grid Kenyans now most likely spend more than 20-30% of their annual income on kerosene.
In d.light’s experience solar powered lighting displaces the majority of kerosene consumption. With no access to electricity in selected areas of Nairobi, through the introduction of solar powered lighting and mobile charging these consumers will be able to save significant amounts of income previously allocated to kerosene and batteries for LED torches. We anticipate that access to solar powered lighting will provide the following benefits to the consumer:
Increased productivity. World Bank studies demonstrate that access to bright, reliable lighting can increase a poor household's income by up to 30% .
Cost savings. Families in Sub-Saharan Africa spend up to $76.80/year on kerosene and batteries, and up to the same amount for charging their mobile phones. Solar lighting products can displace the majority of this spending.
Improved learning environment. Students can increase their study times when provided with bright light. The World Bank in Sudan found students improved their pass rates from 57% to 97% after 1 year with solar lighting .
Improved health and safety. WHO claims that indoor air pollution claims the lives of 1.5 million people/year. By displacing kerosene, d.light products can prevent thousands of deaths each year.
Green-House Gas Mitigation. GHG emissions from kerosene in developing countries are ~265 million tons/year. Each light would eliminate 0.08tCO2e per year.
d.light would like to use a micro-franchise approach to bring d.light solar lighting products to the slums of Nairobi, including Huruma, Mathare and Eastleigh. In partnership with the International Rescue Committee (IRC) d.light will equip 24 girl youth with brand activator kits to sell d.light’s portable solar lanterns in their communities.
The immediate target of this project is female youth aged 17-19 who will be supported to develop and manage their own micro-franchise business, providing them with the opportunity to increase their income, money management skills and their own sense of security.
d.light and the IRC share a conviction in the power of girls to act as catalysts for development; micro-franchise presents a unique opportunity to unlock this economic power. It is widely recognized that investments in young women return multiple dividends, contributing to healthier families, communities, and societies. The proposed project will provide a path out of poverty for girls in the urban settlements of Eastleigh, Huruma and Mathare, empowering them to reinvest in their families and become independent economic actors in their own right. Also by providing lanterns to these girl entrepreneurs they will feel safer while selling or travelling in their communities at night.
Simultaneously, by making high quality solar powered lighting solutions available to the population of the urban settlements of Eastleigh, Huruma and Mathare, we estimate that these girl micro-franchisees will be able to sell 6,961 lights over 12 months, which will benefit a total of 34,805 people.
Approximately 10% of the total population of Eastleigh and Huruma consists of girls between the ages of 15 and 24 (18,000 girls). Using this same 10% extrapolation, there are an additional 30,000 girls aged 15 to 24 in Mathare. Girls in Huruma and Mathare face a number of distinct socio-economic challenges. In an initial assessment conducted by TechnoServe sampling portions of this population, 44% of adolescent girls in Huruma and 72% in Mathare reported that they had children, as opposed to just 8% in Eastleigh. On the other hand, girls in Eastleigh are three times as likely as those in Huruma to lack any formal schooling. Nearly one-third of girls in Huruma and 22% of girls in Mathare have finished secondary school, an achievement that is matched by only 2% of girls in Eastleigh, where language barriers are a much more significant problem. In Mathare, 28% of girls have completed secondary school. Girls in Eastleigh, Huruma and Mathare report a pervasive fear of sexual violence. Security is a major problem in the area. Girls are particularly vulnerable when they have to travel at night to use pit latrines. Meanwhile, there are few employment or recreational activities available for young women, many of whom rely on extended family networks for financial support. It is relatively common for girls to engage in transactional sex from an early age.
d.light with support from IRC has designed a sustainable business model based on girl distribution of solar products directly to women's and youth groups throughout urban areas. During the initial 2 weeks of basic business and & life skills training, IRC will pair two girls together to create a micro-franchise sales team that will act as d.light brand activators. We plan for girls to begin selling approximately 1.6 units per day, increasing to 5 units per day over a two-year period. The end consumer will benefit from d.light's low market prices of less than $15 for the average solar light, which has a payback period of less than 6 months in savings on kerosene. From d.light's perspective, we expect this program to be fully sustainable and profitable for d.light within 18 months of launch. Based on very conservative sales assumptions, we expect each of the girl teams to earn commission-based sales from day 1, with an average salary approximately 3x higher than alternative employment and growing with sales increases to an average salary that is 7-8x higher than what girls typically earn on a daily basis. These income increases are on-going and sustainable, supported by a d.light distribution program which we expect to be fully sustainable within 18 months if we receive Kopernik funding.
|
Item |
Explanation |
Unit cost |
Quantity |
Total Cost |
|
Demo units & samples |
Will allow girls to begin micro-franchise businesses |
$715 |
12 |
$8,580 |
|
Toolkit maintenance |
First 3 months tool-kit maintenance for girl micro-franchise businesses |
$250 |
36 |
$9,000 |
|
Project Implementation Officer |
This person will manage all 24 girls, track progress on daily basis and proactively recommend changes to optimize effectiveness. |
$500 |
12 |
$6,000 |
|
Total
|
|
|
|
$23,580 |
Fluctuations in currency exchange rates and shipping costs may change the final quantity of technologies shipped for this project.
Financial contribution: IRC Kenya will provide $3,900 for the up-front purchase of start-up kits to help offset the cost of initial marketing materials and program start-up costs. Because we would like to provide the girls with high-quality d.light technology, we need additional funding to kick-start these micro-franchise models for our girl population.
Non-financial contribution: IRC Kenya will provide a dedicated full time staff to oversee and monitor the 24 girls enrolled in the program and coach them on sales strategies, financial controls, and business skills. d.light will contribute additional training on sales for all girls, including an upfront three-day session for all 24 girls enrolled in the program.
Urban settlements of Eastleigh, Huruma and Mathare in the city of Nairobi.
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