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Value Chain Analysis of Lighting and
Telephone Recharging Options in Off-
grid Cameroon December 2012
Study done by S2 Services Sarl
Durando NDONGSOK
Hervé AZEMTSA
Joseph Magloire OLINGA
Roberte Fani MOMO
Address: Rue Drouot
BP 122 18, Douala – Cameroon
Tel: +237 33 47 26 02/99 00 80 27
Email: [email protected]
Website: www.s2-gmbh.com
3
Executive Summary
- Around 10 million of people, representing 50% of Cameroon’s population still
rely on kerosene lamps and other tradition solutions for lighting, with
enormous negative financial, health and environmental consequences.
- Many households in remote areas nowadays possess mobile phones and
recharging those is significantly costly to them.
- Actual costs of lighting and recharging phones in off grid Cameroon are:
Daily Yearly
FCFA USD FCFA USD
Kerosene lamps + phone recharge 132 0.26 48 180 96
Battery torch + phone recharge 51 0.19 34 308 69
Diesel generator 648 1.30 236 695 473
- Better and cheaper technologies like pico-PV exist in the world but are
struggling to enter the Cameroon market:
Hourly Daily Yearly
CFA USD CFA USD CFA USD
Small pico-PV 4.3 0.009 15 0.030 5500 11.0
Medium pico-PV
5.9 0.012 21 0.041 7500 15.0
Large pico-PV 9.1 0.018 32 0.064 11 667 23.3
Nuru 6.3 0.013 22 0.044 8033.3 16.1
- The Medium pico-PV has been selected as the best alternative to replace
kerosene lanterns and battery torches. Using it will result in avoided
spending per year as indicated in the table below:
FCFA/year USD/year
Cost of using kerosene lamps 44.9 billion 89.8 million
Cost of using battery torches 8.8 billion 17.6 million
Cost of phone recharging 26 billion 52 million
Total 79.7 billion 159.4 million
Cost of using Medium pico-PV to substitute kerosene lamps
1
21.7 billion 43.4 million
Cost of using Medium pico-PV to substitute battery torches
2
6 billion 12 million
Total Medium pico-PV 27.7 billion 55.4 million
Avoided spending 52 billion 104 million
1 Values used for the estimation are: 1500 FCFA/year; 2.3 lamps per household and 72% of
the total market 2 Values used for the estimation are: 1500 FCFA/year; 2 torches per household and 23% of
the total market
4
- The Market Map of the pico-PV development in Cameroon has been done
using the Value Chain Analysis methodology suggested by Hellin and Meijer
(2006); the three layers of the Market Map namely (i) Enabling Environment,
(ii) Value Chain and (iii) Service Providers have been analyzed:
o A full chain of actors is presented and the role of each actor
presented and discussed
o The environment that will facilitate the market development and
different services that indirect actors have to offer are discussed
- The Netherlands Development Organization (SNV) has a worldwide
experience in developing and connecting people’s capacities that can be put
in place in Cameroon to help poor households to break out of lighting and
phone recharging poverty. Keys recommendations to SNV to support the
development of pico-PV market in Cameroon include:
o Support the National Agency for Standards in insuring only good
quality products enter the market
o Develop researches in the market and make this available to all
actors in the value chain of pico-PV in Cameroon
o Train potential pico-PV retailers to take over the awareness raising of
households, the distribution of products and after-sales services.
- A succinct list of pertinent studies in the field of rural lighting in Cameroon
and the world is presented at the end of this report
5
Contents Executive Summary ................................................................................................. 3
List of acronyms ....................................................................................................... 7
Introduction .............................................................................................................. 8
Background of the study ....................................................................................... 8
Objectives of the study ......................................................................................... 9
Expected results of the study ................................................................................ 9
Methodology of the study .................................................................................... 10
Adapting the RMA and VCA for the study ........................................................... 10
Lighting and phone recharging means in rural area of Cameroon .......................... 12
The kerosene lamp ............................................................................................. 12
Battery lamps and torches .................................................................................. 13
Diesel generators ............................................................................................... 14
Comparison of traditional lighting means ............................................................ 15
Recharging phones............................................................................................. 15
Yearly cost of lighting and phone recharging in rural Cameroon using kerosene
lamps and battery torches................................................................................... 16
Using pico-PV for lighting and phone recharging in off-grid Cameroon ............... 17
The small pico-PV ........................................................................................... 17
The medium pico-PV ....................................................................................... 18
The large pico-PV ........................................................................................... 18
The Nuru technology ....................................................................................... 19
The cost of using these alternative technologies ............................................. 20
Comparing traditional and alternative means for lighting and phone recharging in
off-grid Cameroon ............................................................................................... 20
Value chain analysis of pico-PV market for off-grid area of Cameroon ................... 22
The methodology ................................................................................................ 22
The Value Chain Actors ...................................................................................... 23
Group 1 actors ................................................................................................ 23
Group 2 actors ................................................................................................ 23
Group 3 actors ................................................................................................ 24
Group 4 actors ................................................................................................ 25
The Enabling Environment.................................................................................. 25
Service providers ................................................................................................ 27
The Full Market Map ........................................................................................... 28
SWOT Analysis of pico-PV market in Cameroon .................................................... 30
6
Strengths ............................................................................................................ 30
Weaknesses ....................................................................................................... 30
Opportunities ...................................................................................................... 31
Threats ............................................................................................................... 31
Conclusions and strategies to improving the market of pico-PV systems in
Cameroon .............................................................................................................. 32
Conclusions ........................................................................................................ 32
Key strategies to improve the market .................................................................. 33
Group 1 actors ................................................................................................ 33
Group 2 actors ................................................................................................ 34
Group 3 actors ................................................................................................ 35
Group 4 actors ................................................................................................ 35
Key recommendations to SNV for their implication in the development of the market
of pico-PV lanterns in Cameroon ............................................................................ 37
Implication of SNV on the Enabling Environment of the Market Map .................. 37
Implication of SNV on the Support Services ....................................................... 38
Implication of SNV on the Value Chain ............................................................... 38
Brief review of existing studies on rural lighting ...................................................... 40
Cameroon specific studies .................................................................................. 40
Non-Cameroon specific studies .......................................................................... 41
Annex I: List of surveyed households and their villages .......................................... 43
Annex II: List of focus group meetings and attendees ............................................ 45
Annex III: Potential group 2 actors that supported the research ............................. 48
7
List of acronyms AER Cameroon Rural Electrification Agency
ANOR Cameroon National Agency for Norms and Standards
BoP Bottom of pyramid
CDM Clean Development Mechanism
ECAM National Household Survey
FER Rural Energy Fund
GIZ German International Cooperation Company
LED Light-Emitting Diode
MFI Micro Finance Institutions
MINEE Ministry of Water Resources and Energy
MINFI Ministry of Finance
MINFOP Ministry of Professional Training
MINPMEESA Ministry of Small and Medium Size Enterprises, Social Economy and Handicraft
MINRESI Ministry of Scientific Research and Innovation
NGO Non Governmental Organism
NIS National Institute of Statistics
Pico-PV Pico Photovoltaic system
RMA Rapid Market Appraisal
SHS Solar Home Systems
SIE Energy Information System
SME Small and Medium Size Enterprise
SNV Netherlands Development Organization
VAT Value Added Tax
VCA Value Chain Analysis
WB World Bank
8
Introduction
Background of the study Cameroon is a country endowed with a huge and diversified amount of natural
resources located in Central Africa. This resource potential still has to be
transformed into usable energy (electricity, heat, etc…) to better the life of the
population evaluated at 20 million inhabitants. The hydro potential of Cameroon for
instance is the second potential in the whole Africa after Democratic Republic of the
Congo, but less than 5% is exploited (SIE, 2010). When good part of that potential
will be exploited and transformed to electricity, it will need transportation and
distribution infrastructure to be available to households everywhere in the country.
To date, only 48% of the population – around half of the 20 million inhabitants – is
connected to the national electricity grid and therefore has access to electricity
(Lighting Africa Report, 2012). Before the “modern light” becomes in the future
available to everyone, the rest continues to rely mostly on wick-based kerosene
lanterns and to a lesser extend – as this study has found out – on battery torches
for their lighting needs. Wick-based kerosene lanterns are expensive, unpractical,
unhealthy and bad for the environment, compared to solar lanterns, but they are the
best available solutions that non-grid connected households have been using in
Cameroon, like 2 other billion people worldwide.
Before the problem of lighting is solved, for the last 10 years, the mobile
communication has entered the Cameroon market and is fast penetrating off-grid
areas. Like a wick-based kerosene lanterns needs to be refilled with kerosene on a
recurring basis, mobile phones need their batteries to be recharged after a
maximum of 3 days in many cases. Recharging mobile phones is expensive and
time consuming for rural populations. They have to travel to the next grid-connected
area or to the next holder of diesel generator and pay to get their phones recharged.
For many years already, the pico-photovoltaic (pico-PV) systems that can be used
for lighting and recharging small appliances like mobile phones in off-grid area has
been developed, tested and is in used worldwide. The pico-PV systems are offered
in a large range of sizes and prices and are clean, affordable and practical for
households that have adopted it, despite the cost of acquisition that is high in some
cases. In Cameroon, the penetration of pico-PV is rather timid. Very few players
exist, and active players are facing barriers that infringe their growth and
development in the market.
9
The Netherlands Development Organization, SNV wants to become an active
player in the pico-PV market in Cameroon and brings it experience in renewable
energy development around the world. That means to facilitate the movement of
these clean and affordable lighting solutions from suppliers to the end users in rural
and peri-urban areas of Cameroon. SNV has initiated this study to clearly elucidate
the areas of its intervention in this market.
Objectives of the study
The overall goal of this study is to elucidate potential areas of intervention by SNV
in the existing market for pico-PV lighting and phone recharging systems,
particularly in rural and peri-urban areas of Cameroon. The following are specific
objectives:
- Complete rapid market assessments of the existing market of pico-PV in
Cameroon;
- In-depth interviews with bigger players in the market, and organizations
intervening in the distribution of relevant technologies or provision of
services.
- Develop models of the existing methods of provision of lighting and small
appliance charging services and products, from traditional and renewable
energy sources.
- Use these models to develop detailed descriptions of weak linkages and
potential areas of intervention,
- An inventory of other available solar energy studies done in Cameroon and
in the world in general.
Expected results of the study
The following are the expected results from this study:
- A full map of existing (traditional) means for lighting and phone recharging in
rural Cameroon and associated costs and hurdles;
- Existing models of provisions of traditional and alternative lighting and phone
recharging means in rural Cameroon;
- A value chain analysis of pico-PV systems in Cameroon;
- Key strategies to improve the market of pico-PV in Cameroon;
- Proposition of area of intervention of SNV in pico-PV market in Cameroon
10
Methodology of the study The study was conducted applying the Rapid Market Appraisal (RMA) and Value
Chain Analysis (VCA) tools.
Adapting the RMA and VCA for the study The RMA is a tool that was mostly developed by the International Labor
Organization to support SMEs in developing countries in developing markets for
their products.
The RMA tool has however been adapted to studies like this to have in a short time
a good analysis and understanding of a market. The RMA is based on intelligent
rapid data collection and analysis.
The VCA is defined as “the full range of activities which are required to bring a
product or service from conception, through the different phases of production
(involving a combination of physical transformation and the input of various
producer services), delivery to final consumers, and final disposal after use.”
(Kaplinsky R. and Morris M., 2000 p4).
There are no fixed rules in applying the VCA and RMA, but with resources
permitting, Hellin and Meijer recommend to use first a qualitative analysis followed
by a quantitative study (Hellin J. and Meijer M., 2006 P4).
In this study, a mix of qualitative and quantitative data types were researched and
analyzed based on existing data available and understanding of the market by the
research team.
- Primary data were quantitative and collected through questionnaires, but
also, when administering the questionnaires to respondents (households on
the one hand and inventoried pico-PV sellers on the other hand), qualitative
questions were asked.
- Secondary data were collected during focus group meetings where
interactive discussions took place. These data were more qualitative.
- Tertiary data were obtained reading existing literature for related studies in
Cameroon and similar studies around the world to extract qualitative and
quantitative data that were used further to develop the value chain.
Questionnaires
We conducted two questionnaires:
11
- One questionnaire dedicated to households
- Another questionnaire for inventoried companies offering pico-PV solutions
in Cameroon
For the questionnaire dedicated to households, a simple random sampling was
adopted. The size of the sampling was based on 90% precision and 10% margin of
error. For 10 million inhabitants (we focused and applied the questionnaire only to
off-grid area) and applying an average of 5 persons per households, the total size is
2 million households. With 90% precision and 10% margin of error, the minimum
required sampling size was calculated at 68. We conducted 75 questionnaires with
the available time, covering the minimum size required.
Questionnaires were administered in 7 villages and 3 regions of Cameroon (see
Annex I for complete list of villages) from 3 Regions of Cameroon, namely Far
North, East and North West, to have a good representation of the whole country.
For questionnaires dedicated to pico-PV sellers, all 12 inventoried players were
contacted, of which 8 answered the questionnaires representing 67%, which is a
good coverage.
Focus group meetings
We had focus group meetings during which we interactively discussed the potential
value chain to facilitate the penetration of pico-PV in rural area of Cameroon in
Maroua, Bertoua, Yaoundé and Bamenda. Information received from these
meetings where often challenged during the meeting to get a full clarification. A
complete list of attendees to different focus group meetings is available in Annex II.
Literature review
Several studies were read on the rural lighting and phone recharging issue for
Cameroon, but as well general studies in the world. A brief description of related
studies interesting for Cameroon is found in the last chapter of this document.
The documents were mostly searched using Google Search, but also contacting
resources people known by the research team.
These 3 data types were then analyzed, discussed by the research team and SNV
to come out with the results presented in the following chapters.
12
Lighting and phone recharging means in rural area of
Cameroon
The kerosene lamp
Kerosene lamps remain the largest lighting means in off grid rural and area. The
figure below presents the global repartition of first lighting means in surveyed
regions:
We used the result of the survey conducted and different literature to compile the
different costs as indicated in the table below:
Parameter Indication / average value
Yearly cost (FCFA)
Comment/clarification
1 kerosene lamps cost
2000 FCFA per lamp
1000 We suppose a kerosene lamp can last on average 2 years.
2 Lamps per household
2.3 lamps 2300 Computing with the cost of lamp.
3 Kerosene costs 562 per liter 29224 Computing with the kerosene purchase frequency
4 Kerosene purchase frequency
1 per week NA
5 Transportation 3.26 FCFA per time
1695.2 We calculated an average 326 transportation cost each time and take only 10%, because households usually combine the kerosene purchase with other (shopping) activities. Then we multiply by the purchase frequency.
6 Accessories (wig and glass)
2500 Estimated value after discussion with households.
With the estimation above, we compute the yearly cost of using kerosene lamps to
be 35 719 FCFA.
72%1%
1%
23%
3%
Main lighting means
Kerosene lamp
Electric lamp
Solar lamp
Battery torches
Generator
13
The result of the survey and discussion with households show that the light is used
on average 3.53 hours per day. We compute with this value the cost of lighting in
rural area of Cameroon to be 28 FCFA/hour of light.
Result Value
FCFA USD4
Yearly cost of using kerosene lamps in Cameroon
35 719 71.44
Cost per hour of kerosene lamps per household
28 0.06
Battery lamps and torches
We use the following parameters to estimate the cost of lighting in Cameroon using
battery torches. The parameters came from the result of the survey, discussions
with users and literature review.
Parameter Indication / average value
Yearly cost (FCFA)
Comment/clarification
1 Battery torches cost
1000 4000 We assume a torch lasts 3 months (4 torches purchased per year)
2 Number of torches per household
2 8000 Quality is bad and the torch can be broken the next day after purchase.
3 Cost of batteries 250 13 000 We compute using the frequency of purchase and the number of torches per household
4 Frequency of purchasing batteries
Every 2 weeks
5 Transportation 3.26 FCFA per time
847.6 We use the same value as for the kerosene purchase because the principle of buying batteries is the same, but just half less here, since the purchase is every 2 weeks.
With the estimation above, the computed yearly cost of using battery torches is set
to be 21 848 FCFA.
The result of the survey and discussion with households show that the light is used
on average 3.55 hours per day. With that value the computed cost of lighting in rural
area of Cameroon using battery torches is 17 FCFA/hour of light.
3This value is also the default value used in many CDM methodologies applied to rural
lighting. 4 Exchange rate: 1USD = 500 FCFA, used in the whole report
5This value is also the default value used in many CDM methodologies applied to rural
lighting.
14
Result Value
FCFA USD
Yearly cost of using battery torches in Cameroon
22 695 45.39
Cost per hour of battery torches used per household
18 0.03
Diesel generators
Diesel generators have always been used in rural area for electricity generation. But
these were used in public places like shops in rural neighborhood. Due to the
drastic reduction in prices (price range 50 000 – 55 000 FCFA), wealthier
households in rural area can afford a diesel generator for themselves.
We use the following parameters to estimate the cost of using diesel generators in
rural area of Cameroon:
Parameter Indication / average value
Yearly cost (FCFA)
Comment/clarification
1 Cost of diesel generator
55 000 FCFA 11000 We assume a diesel generator can last 5 years when daily used
2 Diesel consumption
1 liter per day NA 365 liter per year
3 Cost of diesel 600 FCFA per liter
219 000 Computed with the daily diesel consumption
4 Frequency of purchasing diesel
1 per week NA
5 Transportation 3.26 FCFA per
time6
1695.2 We use the same value as for the kerosene purchase because the principle of buying diesel is the same
6 Maintenance and accessories
5000 This cost is our own assumption
With the estimation above, we compute the yearly cost of using diesel generators to
be 236 695 FCFA.
The result of the survey and discussion with households show that the light is used
on average 5 hours7 per day for diesel generators. We compute with this value the
cost of lighting in rural area of Cameroon using diesel generators to be 130
FCFA/hour of light.
6We consider only 10% of the spending on transportation are included to the costs of diesel
purchase. 7People with diesel generators use the light longer in rural area. Usually they can associate
the use of the generator with other activities like holding a shop.
15
Result Value
FCFA USD
Yearly cost of using diesel generators in Cameroon
236 695 473
Cost per hour of diesel generators used per household
130 0.26
Comparison of traditional lighting means Means Cost per hour of
light (FCFA) Comments
Kerosene lamp 28 These 2 are comparable, with the battery torch virtually cheaper. But kerosene lamps are more practical and suitable than torches. With torches:
- Households mostly stay in the dark and lighting it just for specific tasks
- Children cannot study at night
Battery lamp and torch
17
Diesel generator 130 Acquisition and running costs are very high for rural households. Only very few (3%) can afford it.
Recharging phones
The mobile phone distribution in rural area of Cameroon seems to be quite high.
Some families have already more than 3 phones in the household8. The figure
below gives the repartition of phones per household:
We use the following parameters obtained from the survey to estimate the cost of
recharging phones in rural area of Cameroon:
Parameter Indication / average value
Yearly cost (FCFA)
Comment/clarification
1 Cost of recharge 72.5 FCFA 11 690 Computed using the frequency of recharge, the number of phones per households, and the average cost for 52 weeks (a year)
2 Frequency of recharge
2.28 times per week
NA
3 Number of phones per household
1.36 NA
8But it’s important to mention the furthest we went was 20 km away from the urban area.
Maybe deeper in the village people will have less mobile phones and pay more for recharge.
23%
21%
9%11%
36%
Mobile phone per household
One
Two
Three
More than three
None
16
4 Transportation9 3.26 FCFA per
time 3865 We use the same thinking as with
kerosene purchase, but the frequency of recharge is different (2.28x52 times per year)
With the parameters above we compile the following results:
Result Value
FCFA USD
Yearly cost of phone recharges 15 555 31.11
Daily cost of phone recharge 42.62 0.09
Yearly cost of lighting and phone recharging in rural Cameroon
using kerosene lamps and battery torches
With the above calculations, and using the existing information, the research team
draws the following input data for the estimation of yearly costs of lighting and
phone recharging in Cameroon:
Parameter Value Comment Source
Total population 20 million
Off-grid population 9.6 million 48% of total population
Off-grid households 1.75 million 5.5 people per household
Households using kerosene lamps
1.26 million 72% of off-grid households This research
Households using battery torches for lighting
0.4 million 23% of off-grid households This research
Households struggling to recharge their phones
1.66 million 72%+23%. The other (5%) are using their diesel
generators mostly
This research
For kerosene lamps
FCFA/year USD/year
Cost of using kerosene lamps
44.9 billion 89.8 million
Cost for lamps and accessories
6 billion 12 million
Cost for kerosene and transport
10
38.9 billion 78 million
9From the survey, more than 70% of households recharge their phones using electricity, and
have therefore to pay for transportation. 10
The transport is included because average household travel to buy their kerosene.
17
For battery torches
FCFA/year USD/year
Cost of using battery torches
8.8 billion 17.6 million
Cost for torches 3.2 billion 6.4 million
Cost for batteries and transport
5.6 billion 11.1 million
For phone recharging
FCFA/year USD/year
Cost of phone recharging 26 billion 52 million
Combined, households in Cameroon spend per year more than 80 billion FCFA
(around 160 million USD) for lighting and recharging phones. The market potential
for penetration of pico-PV is very big for actors who are interested in investing in
that sector in Cameroon.
Using pico-PV for lighting and phone recharging in off-grid
Cameroon
The rapid market assessment of pico-PV in Cameroon shows that there are
different size, type and prices of lanterns in the market. The most spread sizes with
associated costs in the market that the research team has found out are:
- Small pico-PV costing around 5500 FCFA (cannot recharge phones)
- Medium pico-PV costing around 15000 FCFA (can recharge phones)
- Large pico-PV costing around 35000 FCFA (can recharge phones)
The small pico-PV
Many small pico-PV exists in the market in Cameroon.
After analysis, the most used for the moment is the
d.light S10 sold by Total Cameroon at the price of
5500 FCFA.
Product features:
- Integrated polycrystalline solar panel
- Smart LED indicator for solar charge intensity
- Easily-replaceable, high-performance battery
- Two brightness settings (18 lumen for 8 hours or 27 lumen for 4 hours
- Dual-charging (solar & electric)
- Lifetime more than 50,000 hours
18
- 300mW solar panel.
- 3.6V 350mAh Ni-MH battery
- Rated full recharge in 10 hours of full sunlight (1 kW/m2)
The medium pico-PV
The medium pico-PV is another d.light (d.light
250) sold by Total Cameroon.
Product features
- Bright light and mobile charging
- Four brightness settings (4 hours, 6
hours, 12 hours and 100 hours)
- High-efficiency, weather-proof solar
panel
- Rain-resistant housing
- Indicator showing battery charge level
- Robust circuitry for long-life performance
- Deep discharge and overcharge protection to preserve battery life
- Easily replaceable, high-performance battery
- Lifetime more than 50,000 hours
- 3.6V 1500mAh, Ni-MH 2A battery
- can charge a mobile phone to 80 percent of its full battery capacity in as little
as one hour
The large pico-PV
The large pico-PV available in Cameroon market
is the Philips Uday lantern costing 35,000 FCFA
in the market.
Product characteristics:
- Long usage time: 4-5 hours usage on 5W
PLS lamp (8000 hours), output: 125
lumen.
- Solar charge: 5W polycrystalline silicon
solar panel,
- 6-10 hours to recharge the 6V 4.5Ah SLA battery.
- 3 seconds warm-start operation for longer lamp life.
- Extra safe: Overcharging and deep-discharge protection and fuse for battery
disconnection.
19
- Portable use: Lantern can be hung in different positions by versatile strap.
- Grid charge: Wide operating range, 110-270V mains adapter included, so
lantern can also be used in or close to grid areas.
Beside these 3 categories of pico-PV lanterns, the research team has found the
existence of the Nuru technology in the market.
The Nuru technology
The Nuru technology consists of:
1. The Nuru Light: Portable, rechargeable
LED Lights, each many times brighter than
the light produced by a typical kerosene
lamp.
The Nuru Light gives up to 25 hours of light
with a full recharge; and is used individually
in a variety of ways (head/neck lamp, hung
up, resting on flat surface or bottle-mounted) or connected together (multiple
Lights in various configurations)
Technical characteristics are:
- More than 25 lux at 0.75m (on the High setting)
- LED lifetime: 30,000 hours with no degradation demonstrated in the light
output after 2000 hours
- Battery lifetime: > 200 recharge cycles without any battery capacity loss
- Battery replacement: Batteries can be easily disconnected (via the molex
connector) and replaced at the end of life.
- 0.216W / 60mA (LED), 3.6V (Battery pack)
2. NuruPOWERCycle: The Nuru Light is recharged
using a pedal generator. With minimal human
exertion (approx. one rotation per second), up to 5
Nuru Lights are recharged simultaneously in just
under 20 minutes
3. Nuru Phone Charger: Each Nuru Light user can
charge his phone directly taking the energy from his
lamp anytime, anywhere by simply plugging the Nuru
Phone Charger to the lamp and connecting his mobile
20
phone to it. This will avoid dependence to phone recharging points.
The cost of using these alternative technologies
The table below gives the input data used for the estimation of yearly costs of
different technologies for lighting in Cameroon:
Acquisition cost
(FCFA)
Lifetime (years)
Daily usage (hours)
Recharges per month
Cost of recharge (FCFA)
Small pico-PV 5500 1* 3.5 NA NA
Medium pico-PV 15 000 2* 3.5 NA NA
Large pico-PV 35 000 3* 3.5 NA NA
Nuru 2500 3* 3.5 3 200
*The key element in determining the life expectancy is the battery. Other parts of the pico-
PV – like the panel, the LED light, different cables and the plastic container – can last for
very long time. But batteries will scarcely go beyond 3 to 4 years of age. Also, in the
beginning before the market is well developed and different actors of the value chain –
especially technical people – are available everywhere, the usage and maintenance will not
be well done and lanterns will easily fail to work for long period of time. We combined the
specifications of batteries plus discussions with actors in the market already and some users
to come out with the expected lifetime as given in the table above.
The table below gives costs of using these 3 sizes pico-PV and the Nuru technology
based on the input table above:
Hourly Daily Yearly
CFA USD CFA USD CFA USD
Small pico-PV 4.3 0.009 15 0.030 5500 11.0
Medium pico-PV 5.9 0.012 21 0.041 7500 15.0
Large pico-PV 9.1 0.018 32 0.064 11 667 23.3
Nuru 6.3 0.013 22 0.044 8033.3 16.1
Comparing traditional and alternative means for lighting and phone
recharging in off-grid Cameroon
All households in rural Cameroon need lighting and pico-PV can be a good solution
to replace existing kerosene lamps and battery torches. This research has found out
that on average each rural household of Cameroon possesses 1.36 mobile phones
that they also need to recharge more than 2 times per week. The best solution to
offer them is system that can give light and recharge their phones for lesser costs.
Different alternative solutions costs:
- Small pico-PV is 5 500 per year but since it does not recharge mobile
phones, its user will have to spend 15 555 FCFA extra for phone recharge,
making a total cost of 21 055 FCFA per year
- The Medium pico-PV costs per year 7500 FCFA
21
- The Large pico-PV costs per year 11 667 FCFA
- The Nuru technology costs per year 8033.3 FCFA
The Medium pico-PV is therefore the ideal system for the market in off-grid poor
area and this is what the research team used for comparison:
FCFA/year USD/year
Cost of using kerosene lamps 44.9 billion 89.8 million
Cost of using battery torches 8.8 billion 17.6 million
Cost of phone recharging 26 billion 52 million
Total 79.7 billion 159.4 million
Cost of using Medium pico-PV to substitute kerosene lamps
11
21.7 billion 43.4 million
Cost of using Medium pico-PV to substitute battery torches
12
6 billion 12 million
Total Medium pico-PV 27.7 billion 55.4 million
Avoided spending 52 billion 104 million
11
Values used for the estimation are: 1500 FCFA/year; 2.3 lamps per household and 72% of the total market 12
Values used for the estimation are: 1500 FCFA/year; 2 torches per household and 23% of the total market
22
Value chain analysis of pico-PV market for off-grid area of
Cameroon
The methodology As stated before, there is no standard methodology in applying a Value Chain
Analysis (VCA).
Hellin and Meijer developed however comprehensive “Guidelines for Value Chain
Analysis” ((Hellin J. and Meijer M., 2006) that the research team has found well fit to
apply for this study.
The guidelines suggest that a good place to start is to draw a Map of the Market, to
build up an understanding of different players and actors on the product
development chains (from input to final user) and the relationships between them,
along with the factors that determine how well or badly the chains are working.
A good Market Map starts with a Value Chain, followed by a “Mapping and Analysis”
of the Value Chain using a Value Chain Analysis, which is an iterative process using
qualitative and quantitative tools. Tools suggested by Hellin and Meijer are:
- Observation to have a greater understanding of the situation being
researched. The research team has done this extensively.
- Semi-structured interview and focus group meetings. This is as Hellin and
Meijer clearly state “an art than a set of fixed procedures and the interview
process is dynamic and iterative”
- Questionnaires to have quantitative data on the situation being researched
After the Value Chain is “Mapped”, Hellin and Meijer suggest that to understand
more about the extraneous factors that influence the way the value chain works,
there is a need to use the Market Map and they define this as: “The market map is a
conceptual and practical tool that helps identify policy issues that may be hindering
or enhancing the functioning of the chain and also the institutions and organizations
providing the services (e.g. market information, quality standards) that the different
chain actors need in order to make better informed decisions”
The Market Map is made up of three inter-linked components:
- Value chain actors
- Enabling environment (infrastructure and policies, institutions and processes
that shape the market environment)
23
- Service providers (the business or extension services that support the value
chains’ operations)
The guidelines of Hellin and Meijer have been thoroughly adapted by the research
team for this study to get the result presented in the following paragraphs.
The Value Chain Actors The research team has used market observation, literature review and focus group
meetings to draw the following value chain for the market of pico-PV in Cameroon:
The market of pico-PV in Cameroon is not yet very well developed. The value chain
above is not what exists already, but rather what came out from the analysis of the
research team as the scenarios that will develop in Cameroon.
Group 1 actors
These actors are out of Cameroon. To date there is no local lanterns or spare part
producers in Cameroon and this will not likely happen in the nearby future. This is
not happening in any African country for the moment, because there is no
infrastructure to produce at costs that will compete with mass productions in Asia.
These actors therefore do not really influence the market in Cameroon.
Group 2 actors
These actors are:
- Importers: They import solar lanterns in large quantities and sell to
distributors and retailers. They will import any product and let customers
select what they want.
Lanter
producers
Importers
Distributors
Retailers
Sales points
Spare part
producers
Local
assemblers
Group of
users
Individual
users
Group 1 Group 2 Group 3 Group 4
24
- Distributors: They can import, but can also buy from local importer or from
assembler to trade down to Group 3 and/or Group 4. They will usually seal
partnerships with selected Group 1 actors for specific products. TOTAL
Cameroon is for the moment to the knowledge of the research team the
main Distributor of pico-PV lanterns. They distribute d.light13 products in their
petrol stations
- Assemblers: They import raw equipment or semi-finished product and
assemble them locally to produce solar lanterns and then sell to any
interested buyer (Group 3 and 4 or distributors). Only one company Light for
All Production S.A. Cameroon mentioned to the research team they are
planning to assemble solar lanterns in Cameroon.
The research team inventoried 12 Group 2 actors and only 8 were opened to
exchange on the topic. Of the 8 (the complete list and contacts is available on
Annex III):
- 2 were doing the distribution of solar lanterns in Cameroon (TOTAL
Cameroon and Light for All Cameroon)
- 1 was selling a completely different product, the Nuru Light that is a system
of lights mechanically charged with a pedal
- 1 was just an interested NGO (Center for Environment and Development)
and not really selling pico-PV products
- 1 (Light for All Production) is planning to assemble pico-PV products locally
- The 3 others were mostly doing Solar Home Systems14 (SHS)
Group 3 actors
Group 3 actors are divided in 2 categories:
- Retailers: They buy wholesale any product from any Group 2 actor to resell
back to end users.
- Sales points: They represent or are local subsidiaries of Group 2 actors and
sell on their behalf to end users or Retailers.
These actors should be the most important in the market as they are closest to end
users (Group 4). But as said before, the market is still not well developed and the
research team found out that many Group 2 actors nowadays are selling their
13
D.light is a pico-PV producer, one of the largest in the world. In Cameroon, TOTAL is distributing 2 types of d.light products. 14
SHS are large PV systems that can be installed to power a house or group of houses and apart from lighting can run large devices like TV and Fridge, depending on the size.
25
products directly to end users. TOTAL for instance is placing its products in different
petrol stations (that by the way are not in off-grid area) and selling directly to end
users.
To date, there are virtually no well trained Group 3 actors, ready to take over the
distribution. Small shop keepers and kerosene sellers in rural area are continuously
selling their kerosene lamps and kerosene, and battery torches and have not been
approached yet to try selling pico-PV instead. GIZ Cameroon has started a program
to provide selected Group 3 actors with technical and management skills to sell
pico-PV products in off-grid area. Maybe there are similar programs going one, but
all are very new in the market and will need to be encouraged and supported.
Group 4 actors
They are end users and need enough incentive to buy the product, but at the same
time need training and monitoring to be able to use the products to the length of
their entire lifetime. Their satisfaction does not come just after buying the product,
but rather later after the investment is paid back and the product is still functioning
perfectly.
Group 4 are normally households, end users. But during the survey and focus group
meetings, it came out many times that one of the strategies is to sell products to
groups, having the group as a moral guarantee. The acquisition cost of pico-PV
products is high and many households in rural area cannot afford this in one
installment. A group of household can come together and take small loans to buy
solar lanterns to group members one after another and payback the loans in small
installments. This strategy will work better than giving loans to individual
households.
The Enabling Environment According to Heillin and Meijer, “The enabling environment consists of the critical
factors and trends that are shaping the value chain environment and operating
conditions, but may be amenable to change. These “enabling environment” factors
are generated by structures (national and local authorities, research agencies etc.),
and institutions (policies, regulations and practices) that are beyond the direct
control of economic actors in the value chain”
For the market of pico-PV in Cameroon, the following factors can significantly
enable the environment:
- Public awareness: During the research, it was clear people in rural area
most of the time have not even heard of the solar lanterns. Without their
26
understanding of this alternative lighting and phone recharging solutions,
nothing will ever happen in the market. The public awareness can be done
by NGOs and development agencies through information campaign and
demonstrations. But for profit actors have to continuously advertize their
products.
- Quality control of products entering and traded in Cameroon. Pico-PV
products will successfully and sustainably enter the market if end users are
satisfied by the quality that is promised to them. The Cameroon National
Agency for Norms and Standards (ANOR) has to take the lead in certifying
the quality of products entering Cameroon. ANOR to date does not yet have
a department responsible for the certification of pico-PV products. What is
used in other African countries mostly is the World Bank Lighting Africa
certification, which is the highest certification available for the African
market. ANOR could request all products entering Cameroon to have that
World Bank (WB) certification and set up a complementary certification
procedure for locally assembled products that can find the cost of WB
certification very high.
- Research: The habits, cultural beliefs and economic development in
Cameroon are different from one region to others. The demand, adoption
and adaptation of different regions to pico-PV products might vary and only
good and regular researches can help different actors adapt to the market
and offer well suited products to different regions. The Ministry of Scientific
Research and Innovation (MINRESI) and the National Institute of Statistics
(NIS) are well equipped to do such researches. The NIS does permanent
household surveys like the National Household Survey (ECAM) but has not
yet done detailed surveys specific to rural lighting.
- Business environment improvement: The business environment of
Cameroon needs to be significantly improved to attract foreign investors
interested in the pico-PV sectors. In countries like Kenya and Madagascar,
large pico-PV producers like Barefoot15 power are distributing directly their
products in the market, because the business environment is clear and
15
Barefoot power is a pico-PV lantern producers bearing its name
27
predictable. Cameroon is ranked 161 by World Bank Doing Business out of
185 countries, a very poor ranking to easily attract investors.
- Institutional support: The support of institutions is very important to enable
the business environment. For Cameroon, the following institutions are of
prime importance for the development of pico-PV market:
o The Ministry of Water Resources and Energy (MINEE) can set up the
pace in the market by continuously doing its work of formulating
policy and regulations and providing administrative and technical
oversight of the energy sector in general and of the pico-PV market
in particular. The MINEE should be the central institution overlooking
the work of all other institutions involved in the development of the
pico-PV market in Cameroon.
o The Rural Electrification Agency (AER): The AER promote and
implement rural electrification in Cameroon. It also manages the
Rural Energy Fund (FER). The Director of AER indicated during the
research that the FER is not limited to only electrification by can also
accept innovative projects or programs for lighting in rural area of
Cameroon, a good chance for pico-PV, since the fund is 100% grant.
To date, to the knowledge of the research team, no pico-PV
programs has been funded already, but some promising applications
are being studied by the FER.
o The Ministry of Finance (MINFI): The cost of acquisition of pico-PV is
still relatively high for poor households. The MINFI has introduced in
2012 a levy on the Value Added Tax (VAT) on the importation of
solar and wind products in Cameroon. This is 19.25% subsidy that
can be a good boost for the penetration of pico-PV products in
Cameroon.
Service providers For the value chain to be the most effective possible, actors forming the chain have
to be supported by service providers (also called “business and extension services”)
from other enterprises and support organization according to Heillin and Meijer.
These service providers for the market of pico-PV in Cameroon include:
- Financial services, through banks and MFIs. Bank can support Group 2
actors that present bankable business plan in ordering quality products and
28
making those available to the market. MFIs will support Group 3 actors to
set up their businesses and trade down pico-PV products to end users.
- Training and capacity building: For Group 3 actors to exist and take over the
national distribution of pico-PV products, there is a strong need of training on
technical and managerial skills. With a good training, they will understand
the needs of end users and easily negotiate their contracts with Group 2
actors to have encouraging margin and good quality and available products.
Also, some Group 2 actors could be trained to know how to develop good
strategies for their development. For instance, what type of products to
order, which markets to target, how to approach banks with sound business
plans and negotiate investments… all these questions are still unclear to
some of these actors met during the research. In Cameroon, the Ministry of
Professional Training (MINFOP) through different institutions is well
equipped to train Group 2 actors whilst the Ministry of Small and Medium
Size Enterprises, Social Economy and Handicraft (MINPMEESA) can train
Group 3 actors.
- SME support: Apart from training, the MINPMEESA can install and even
support the development of Group 3 actors. This ministry has special
programs to support the development of SMEs that Group 3 actors can
benefit.
The Full Market Map After analyzing different layers of the market map as suggested by Heillin and
Meijer, the full market map of pico-PV in Cameroon can be drawn with all the 3
inter-linked components. The Enabling Environment is on top of the value chain and
influence the whole chain, while Services Providers offer their services to specific
chains:
29
Lantern
producers
Importers
Distributors
Retailers
Sales points
Spare
parts
producers
Spare
parts
producer
s Assemblers
Group of
users
Individual
users
Group 1 Group 2 Group 3 Group 4
Value Chain
Enabling
Environment Public Awareness
Quality Control (ANOR)
Business environment improvement
Research (MINRESI/NIS
)
MINFI AER
MINEE
Support Services Banks MFIs MINFOP MINPMEESA
30
SWOT Analysis of pico-PV market in Cameroon
Strengths # Strength How to best use the strength
1 Prices of solar lanterns have gone down tremendously in the international market and there are more and more pico-PV lantern producers
This is automatically increasing the demand because pricing have gone down to reach almost all poor households in Cameroon.
2 There is VAT levy (19.25%) on solar products entering Cameroon
This has certainly reduced the price of lanterns. All Group 2 actors met during the research knew about this levy, which shows their interest in developing the market
3 There is a better understanding of pico-PV in Cameroon
Things are going in the right direction, but there is a need to capitalize on that and continue the sensitization
4 Many rural lighting projects using solar lanterns are successfully going around the world. That show the product is demanded and household that adopt it are satisfied if rightly trained on the use.
We can learn the strategies from success stories and adopt in the case of Cameroon. Also, the success in other countries will be echoed in Cameroon and begin/continue and facilitate the sensitization that is dearly needed for people to understand the necessity of adopting solar lighting
Weaknesses # Weakness How to manage the weakness
1 Acquisition costs of solar lanterns are still high for BoPs in Cameroon
BoPs in Cameroon are buying mobile phones much more expensive than solar lanterns. If there is a strong awareness and solar lanterns are available, they will buy them.
2 MFIs and other financial institutions do not yet support the development of the market and this is a huge barrier to the development of solar market. Group 2 people needs capital to be able to order good products and make economy of scales, Group 3 needs small financial products and support to set up their businesses, train themselves and start running.
There is a need to train actors on how to best approach investors, but at the same time there is a need to train financial institutions on the benefit (financial and social) they will get by investing in the market.
3 The market of rural lighting in Cameroon is still very complex and not yet understood
This is a strong weakness as to enter the market important players will want to have good understanding of the market. Researches like this are very helpful
4 Transportation to rural and remote areas is very difficult and will increase prices of solar lanterns for poorer population. Many Group 2 actors surveyed already indicated their pricing differences per region (to include transportation costs), which is rather normal for business.
31
Opportunities # Opportunity How to best use the opportunity
1 Around 4 millions kerosene lamps in use in Cameroon
The potential for market development is there and untapped. More actors are needed and each will get a good share of the market
2 Kerosene continues to be very expensive in the Cameroon market
Dedicated training and sensitization of end user on the benefit they get by adopting solar lanterns have to be done.
3 The institutional framework in Cameroon is becoming more and more favorable to investors
It’s important to find favorable texts and make them available to all interested actors
4 The price of kerosene is subsidized by more than 50% by the government of Cameroon. The state will save a lot of money when kerosene lamps are replaced
The government of Cameroon has been thinking for sometime on how to stop subsidizing kerosene and other petroleum products. If the opportunity of bringing solar lanterns to the market is rightly presented to the government, then it will surely support the initiative.
Threats # Threat How to manage the threat
1 Entrance of low quality lighting products in the market
The quality control has to be set up and strictly work in avoiding the entrance of low quality products into the market
2 Lack of receptiveness of new products. People are so used to kerosene lamps they do not think of getting lighting from any other mean.
Sensitization has to go on continuously supported by pilot projects.
3 Increase rate of electrification. This is a good threat as there is a strong need of electrification in the whole country. But this will not happen before decades.
Investors entering the market now will have good return on investment before the electrification rate becomes a real problem
16.
16
A scenario from the government shows that electrification rate will reach only 60% in rural area by 2025 (Lighting Africa, 2013)
32
Conclusions and strategies to improving the market of pico-PV
systems in Cameroon
Conclusions Cameroon is a Sub-Saharan African country with around 10 million inhabitants not
having access to grid electricity. These inhabitants rely mostly on wick-based
kerosene lanterns for lighting (72% according to this research) and battery torches
(23% according to this research). Kerosene lanterns are known to be expensive and
unhealthy for households, but so far has been the solution used for lighting for
about 2 billion people all over the world.
Besides lighting, in the last 10 years the market of telecommunication has grown
bigger and faster in rural area of Cameroon as it’s the trend all over Africa. This
research has found out that on average each household possesses 1.36 mobile
phones that are recharged 2.28 times per week.
The existing lighting means and the use of mobile phones need recurring costs to
poor households:
- Kerosene lanterns, after their purchase, need – apart from small accessories
like glass and wick – mostly kerosene to be purchase on regular basis to
provide light to households. This research has found out that on average
each household possesses 2.3 kerosene lanterns and purchase a liter of
kerosene per week. All costs included (acquisition of lamps, accessories and
kerosene), a household spends 35 719 FCFA per year for lighting.
- Battery torches, after their purchase need batteries regularly to provide light.
Average household using battery torches surveyed for this research
possesses 2 torches that last only 3 months each and by every other week a
pair of battery for each torch. All costs together, a household spends 22 695
FCFA per year for using battery torches for lighting
- Recharging phones per household cost 15 555 per year, with each phone
recharging 2.28 times per week at 72.5 FCFA per time on average.
Added together, all off-grid households of Cameroon spend per year more than 80
billion FCFA for purchasing kerosene lanterns and kerosene, battery torches and
batteries and for recharging their phones.
In the international market, traditional means for lighting and phone recharging are
being replaced by pico-PV lanterns. The pico-PV lanterns are entering the
33
Cameroon market in different size and prices. This research has selected the three
most available and practical in the market of Cameroon and called them:
- Small pico-PV costing 5 500 FCFA to end user
- Medium pico-PV at the price of 15 000 FCFA
- Large pico-PV sold at 35 000 FCFA
Beside the pico-PV lanterns, this research has found in the Cameroon market the
so-called Nuru Light, which a light with internal battery that is charged by a pedal
called PowerCycle.
These alternative technologies are more practical and cheaper than kerosene
lanterns and battery torches. If adopted by the whole off-grid population, the total
costs of using the Medium pico-PV (which is the best alternative in terms of costs
against services provided) will be 27.7 billion FCFA, more than 50 billion cheaper
than the traditional kerosene lanterns and battery torches.
Solar lanterns are however struggling to successfully enter the Cameroon market.
To find barriers infringing the development of the market of solar lanterns in
Cameroon and propose ways of making that market work, we have conducted a
Market Map using the “Guidelines for Value Chain Analysis” of Hellin and Meijer
(2006) methodology to depict value chain actors (and drew the value chain) and
grouped actors in 4 categories, propose en enabling environment (infrastructure
and policies that shape the market environment) and set of service providers
(services that support the value chain operations).
A full Market Map has been presented – as a result of the analysis done – showing
different actors of the value chain and different bodies and organizations around the
value chain actors that need to need to be created and improved to facilitate the
flow of solar lanterns from one end of the chain – represented by technology
providers – to the other end – representing end users.
Key strategies to improve the market For the market to be fully operational and benefit poor households, several
strategies have to be put in place at each level of the value chain.
Group 1 actors
Group 1 actors are out of Cameroon. They follow the worldwide trend in solar
development and design products and make them available to the market.
34
They have their business strategies; decide which products to design for which
countries. They can in a sense not be influenced by the need of Cameroon alone,
because the world market is extremely high with over 2 billion kerosene lamps that
can be substituted by pico-PV systems.
Group 2 actors
The success of this group of actors depends on:
1. How to order best quality products
2. What type of products to order and why:
a. Order and sell finished product?
b. Order parts and assemble locally?
3. What business models to use
a. Have selling points in different parts of the country?
b. Sell to any retailer and go?
c. Sell directly to end users
4. How to secure financing from banks and other financing institutions?
# Success depend on:
Comments/Influence on the business
Strategy
1 Quality product The quality is very important for the smooth development of the market
Set up a department in ANOR responsible for certification of products entering Cameroon market
2 Type of products (finished or local assembly)
The quality of finished product might be better, but local assembly will likely reduce costs (if economy of scales), create local jobs and offer tailored products to end users, but then more management will be needed
- Training and support of these actors to determine best market strategy for type of products.
3 Business models Direct sales will not bring substantial revenues, as the market coverage will be low. Selling through partners will ensure the after sales service is well done, but the management costs will soar. Selling to any buyer will reduce management costs, but there won’t be any insurance on the services end users get.
- Support these actors on the selection of business model;
- Training of Group 3 on sales skills and better after sales services
4 Financing from banks
There is a need of getting financing. Many Group 2 actors indicated financing was their main concern.
- Sensitize banks and financial institutions on the benefits to invest in the market
- Support these actors in having bankable business plans
- Training in the financing negotiations with investors
35
Group 3 actors
The success of this group of actors will depend on:
1. How to negotiate contracts with Group 2 actors?
i. Be a selling point?
ii. Be a free retailer and sell different products available in the market?
2. Training to train end users on the utilization of products
i. What are after sales services to offer
ii. How to manage the guarantee offered to customers?
3. Training in communication and selling of pico-PV equipments and further
training in basic accounting and management
i. How to get trained by MINFOP or MINPMEESA?
ii. How to get trained by development agencies and NGOs
4. How to work with MFIs to design financial products for households?
# Issue Influence on the business/comments
Strategy
1 Contractual agreement (when necessary) with group 2
Being a selling point make sure good quality products are received from the partner, but can limit market coverage if partner does not have a sound range of different products. Selling different products make management difficult.
Dedicated training Support in designing a good strategy
2 Technical training
Good after sales service is necessary
Constant training on technical aspects of (new) products Training of end users to facilitate the work of Group 3 actors
3 Training in management
Apart from technical aspects, it’s important the SME owners (Group 3) have basic accounting and management skills to be able to run their businesses
- Training in management and basic accounting
4 Financing from MFIs
Since the products are (still) very expensive for poor households, it’s important to provide them with financial facilities and MFIs can play a good role in that
- Collaborate with MFIs (and cooperative) to develop products for the market
- Train Group 3 in understanding and managing the financial products
- Train households in understanding the financial products and acquiring those
Group 4 actors
They are the final beneficiaries of all actions along the value chain. The key for
them is the sensitization. Solar products are cheaper, practical to use, healthier,
pose no risk of fire and protect the environment compared to kerosene lanterns. But
the market of pico-PV is still developing in Cameroon and poor and remote
36
household are not yet aware neither of the pico-PV systems nor of the benefit the
latter can bring.
It is important for each actor including government, local and traditional authorities
to be involved in a continuous sensitization of households.
The issue of subsidy has been raised during the research and also in literature.
Many people still argue that the acquisition costs of solar lanterns is high, making it
a main barrier to the entrance of those products in the off grid market of Cameroon.
The government of Cameroon however is already subsidizing the pico-PV lanterns
through the VAT levy on all imported solar and wind equipments entering
Cameroon. This is surely what is making the Medium pico-PV lantern – than can
provide light and recharge mobile phones – as described in this report costing 15
500 FCFA. This research has found out that each family surveyed is having on
average 1.36 phones and paying per year more than 15 000 FCFA just to recharge
the phones. This is not counting the costs for buying the phones and airtime to
make calls. Cheapest and acceptable phones in the market cost at least 10 000
FCFA and many even afford fancy phones far expensive than this.
The research team thinks there is no need to subsidize further pico-PV lanterns, but
rather to invest in sensitization and different trainings as described in this report.
The market will develop if households understand the importance of using these
products and have good quality available to them.
# Issue Influence on the business/comments
Strategy
1 Sensitization/awareness raising
Many households do not adopt solar lanterns because they ignore the benefits of using it
Permanent sensitization by all actors (governmental institutions, NGOs, development agencies, private sectors, etc.)
37
Key recommendations to SNV for their implication in the
development of the market of pico-PV lanterns in Cameroon The previous chapter presented different strategies to improve the market of
alternative lighting and phone recharges means in Cameroon that will replace
existing expensive and unpractical wick-based kerosene lanterns and battery
torches and reduce time and costs that off-grid households spend for recharging
their phones.
From these different strategies, the research team has selected what SNV can do
based mostly on the fact that SNV does not really directly implement projects, but
rather build capacities of local so that the latter can themselves sustainably solve
their problems. The implication of SNV in different projects is always limited in time
and it’s important that:
- Their assignment is clear and doable in a defined period of time
- Their action is as efficient and effective as possible and can bring
quantifiable changes in the market
Keeping these 2 criteria in mind, the research team has looked at the three parts of
the Market Map to determine what SNV can do to improve the market.
Implication of SNV on the Enabling Environment of the Market Map The development of the market of pico-PV in Cameroon can go smoothly if there is
an Enabling Environment as described in the Market Map. Many institutions and
actions make the environment enable. The table below presents the selection of the
implication of SNV to enable the environment for the market development of pico-
PV in Cameroon:
Enabling action/institution
Description Direct implication of SNV?
Public awareness
Raising awareness is something that needs to be done every day by all actors involved. Since the market is developed using business approach, each actor will see the importance of raising awareness. Also, the government and NGOs can do this better than anyone else
No, but public awareness will be put in the training package for Group 3 actors
Quality Control (ANOR)
The quality of products entering the market is very important. ANOR exists already and can be trained by SNV to set up a department for control and certification of pico-PV products before they enter the market
Yes
MINEE/AER MINEE and AER can create a better enabling environment and put in place programs that will instill the market of pico-PV. To do that, the SNV intervention is not really necessary and crucial.
No
38
Business environment improvement
The overall improvement in the business environment of Cameroon is a task for the government
No
MINFI The implication of MINFI can mostly be done through introduction of subsidy. The research team however said there is no need to further subsidize the market directly.
No
Research (MINRESI/NIS)
The development of the market has to be supported by credible information, data and analysis that mostly Group 1 and Group 2 actors can use to know what type of products to supply the market with. SNV can permanently hire local consultants to fuel the market with useful research that will further support the market development
Yes
Implication of SNV on the Support Services Support Service
Comments Direct implication of SNV?
MINFOP/MINPMEESA
These 2 government agencies have special programs dedicated to training and installing SMEs. But for a fast and efficient train, SNV can work directly with Group 3 actors
No
Banks Banks will be interesting for large Group 2 actors who once they understood the benefit they can get from investing in the field of pico-PV will not need any further support from SNV in negotiating with banks.
No
MFIs The acquisition cost of pico-PV lanterns is still high for some households. SNV can work together with Group 3 actors and MFIs to develop products that will help households get lights and pay by installments to MFIs
Yes
Implication of SNV on the Value Chain Value Chain Comments Direct implication
of SNV?
Group 1 These are international big players in the market of pico-PV and do not need SNV’s help
No
Group 2 The market is developing in the for-profit direction, which is perfect. All Group 2 actors inventoried understand this and will know how to develop their strategies if they see a good market developing downstream and households understanding and demanding pico-PV lanterns
No
Group 3 The successful development of the market as discussed in the report depends on existing and well trained Group 3 actors. They are the closest to end users and:
- Understand their need - Can rapidly do maintenance if well trained - Can together with end users negotiate
terms with MFIs - Know end users and can develop good
strategies to raise awareness of the end users
Yes
39
It’s important for SNV to set up programs for selecting and training Group 3 actors.
Group 4 The market is large and it’s impossible and inefficient to work directly with individual households. Only local consultant hired by SNV to do research in the market could work directly with households for data collection.
No
Summing up, the role of SNV in the development of pico-PV market in Cameroon
and the implication its intervention will have is represented in the figure below:
With the implication of SNV, the market of pico-PV will rapidly develop and, if
government and other development agencies participate to the market
development, before 2020 almost all off-grid inhabitants of Cameroon will have
access to clean lighting.
40
Brief review of existing studies on rural lighting
Cameroon specific studies 1. Lighting Africa Policy Report Note – Cameroon
Year published 2012
Published by World Bank Lighting Africa program
Interesting chapters The Whole document
Topics discussed i. Estimation of the off-grid market in Cameroon
ii. Proposes policy and institutional environment necessary
for the development of off-grid market in Cameroon
iii. Gives key recommendations to improving the market
Availability Available online (PDF)
Comments Recommendable study, but important to contact the authors
to find out research methods
2. Result of survey conducted by Rainbow Environment in 20 villages and 189
households
Year published 2010
Published by Rainbow environment consult
Interesting chapters The Whole document
Topics discussed i. Primary and secondary lighting means
ii. Spending on kerosene
iii. Costs of kerosene lamps
iv. Willingness to pay for solar lanterns
Availability Word and Powerpoint summary of results available on the
website www.light4allcameroun.org
Comments Study lack consistency, not recommendable
3. Research by Total Cameroon
Year published Not yet available
Published by Total Cameroon under the program Total Access To Solar
Interesting chapters Not known
Topics discussed Research still ongoing
Availability Not known
Comments Will be interesting to see the result of this study if Total
discloses it.
41
Non-Cameroon specific studies These studies, though objectively selected to serve the purpose of further
researches on the issue in Cameroon do represent only a very small share of
thousands of existing studies available online in the issue of pico-PV in the world.
4. The true cost of Kerosene in rural area of Africa
Year published 2012
Published by World Bank Lighting Africa program
Interesting chapters Whole document
Topics discussed Increase in kerosene price from urban to rural area
Availability Available online on www.lightingafrica.org
Comments Very interesting study to extrapolate on the kerosene prices in
far rural area of Cameroon
5. Design, Development and Marketing of Solar Lanterns
Year published Unknown
Published by Kieron Crawley, Ray Holland, Stephen Gitonga
Interesting chapters The Whole document
Topics discussed i. Difficulties to develop solar lanterns in developing
countries
Availability Available online at https://practicalaction.org/text/technical-
information-service/text/print/docs/energy/solar.pdf
Comments Good study for actors that would like to produce lanterns
locally
6. Access to Energy for the Base of the Pyramid
Year published 2009
Published by Hystra with the support of GDF-SUEZ, Schneider Electric and
TOTAL
Interesting chapters i. Chap 4.2: Providing mass market devices to cover basic
needs
ii. Chap 4.4: Rural cooperatives: providing energy and
income generation opportunities simultaneously
iii. Chap 4.5: Financing: Facilitating the development of
social enterprises
iv. Chap 5: Recommendations
42
Topics discussed A series of success stories and strategies used around the
world to provide clean energy to households
The book insists that the good technology is not the solution,
it’s rather have good entrepreneurs, better cooperation
between all links of the distribution chain that will make clean
energy available to BoP
Availability Available online on the website of www.hystra.com
Comments Interesting to learn, adopt and adapt some strategies
presented there. The pilot project can learn a lot from
examples given in this report.
7. What difference can a pico-PV system make
Year published 2010
Published by GTZ (actual GIZ)
Interesting chapters Whole document with more focus on 7: Policy and Market
Topics discussed i.
Availability Available on line at:
http://www.giz.de/Themen/en/dokumente/giz2011-en-energy-
news17-march.pdf
Comments Very interesting study, especially the policy
recommendations;
8. Small Scale CDM Methodology AMS-III.AR
Year published 2012
Published by United Nations Framework Convention on Climate Change
Interesting chapters The Whole document
Topics discussed i. Applicability of the methodology
ii. Baseline description and estimation of greenhouse gas
emissions reduction
Availability Available on the website www.cdm.unfccc.int
Comments Interesting for large players that maybe interested to get carbon
finance revenue. Barefoot for example just registered a CDM
projects in Kenya as Program of Activities and will likely at some
other countries in the program.
43
Annex I: List of surveyed households and their villages Names and
surnames Phone Division Subdivision Village
1 Bitanga Jeannot 74 62 16 20 Est Lom et Djerem Adinkol
2 Bara Albert 75 36 52 10 Est Lom et Djerem Adinkol
3 Ntelezamb Hélène - Est Lom et Djerem Adinkol
4 Beboum Jean - Est Lom et Djerem Adinkol
5 Doua Valery 99 75 60 52 Est Lom et Djerem Adinkol
6 Djopal Beda Samuel - Est Lom et Djerem Adinkol
7 Mbrambi Doko Rostand
- Est Lom et Djerem Adinkol
8 Dalailo Ousmanou - Est Lom et Djerem Adinkol
9 Ayindi Jacqueline - Est Lom et Djerem Adinkol
10 Nganman Henri 98 44 95 22 Est Lom et Djerem Adinkol
11 Nadine Anoumba Abondo
- Est Lom et Djerem Adinkol
12 Bebey Justine - Est Lom et Djerem Adinkol
13 Massiké Symphirien 99 41 95 63 Est Lom et Djerem Adinkol
14 Narmaye Jean 73 15 92 79 Est Lom et Djerem Adinkol
15 Mbobelé Gaetan 93 72 74 93 Est Lom et Djerem Adinkol
16 Ibrahima - Extrême Nord Diamaré Beguelé
17 Aguimilack Sali - Extrême Nord Diamaré Beguelé
18 Hamadou Ousmane - Extrême Nord Diamaré Beguelé
19 Abougan Aliman - Extrême Nord Diamaré Beguelé
20 Yao Ba Bimout - Extrême Nord Diamaré Beguelé
21 Amadjoda - Extrême Nord Diamaré Beguelé
22 Bouba 74 73 48 20 Extrême Nord Diamaré Beguelé
23 Toukou Somaka 76 21 85 93 Extrême Nord Diamaré Beguelé
24 Saadou 78 15 09 31 Extrême Nord Diamaré Beguelé
25 Bachirou Robert 76 95 40 19 Extrême Nord Diamaré Beguelé
26 Mina Abounabi - Extrême Nord Diamaré Beguelé
27 Mamoudou Jean Paul
- Extrême Nord Diamaré Beguelé
28 Moussa Mama - Extrême Nord Diamaré Beguelé
29 Hamadjam - Extrême Nord Diamaré Beguelé
30 Yakoubou 75 65 02 28 Extrême Nord Diamaré Beguelé
31 Nikafa - Extrême Nord Diamaré Beguelé
32 Salatou Alioum 76 09 19 77 Extrême Nord Diamaré Beguelé
33 Issa Sali - Extrême Nord Diamaré Beguelé
34 Sadjo - Extrême Nord Diamaré Beguelé
35 Massai - Extrême Nord Diamaré Beguelé
36 Sali Yogouda 99 74 68 66 Extrême Nord Diamaré Beguelé
37 Kari Ousmanou - Extrême Nord Diamaré Beguelé
38 Mama - Extrême Nord Diamaré Beguelé
39 Adamou - Extrême Nord Diamaré Beguelé
44
40 Abdou Alioum 96 67 96 12 Extrême Nord Diamaré Beguelé
41 Hamaoua 71 43 49 75 Extrême Nord Diamaré Beguelé
42 Bachirou 95 25 40 12 Extrême Nord Diamaré Beguelé
43 Solomon Tawin 77 43 66 73 North West Mezam Bossah
44 Clarisse Tamunang - North West Mezam Bossah
45 Moufou Madelaine - North West Mezam Bossah
46 Stanley - North West Mezam Bossah
47 Queen 78 49 63 37 North West Mezam Bossah
48 Agwé Rigobert 73 20 60 50 North West Mezam Bossah
49 Felicia 75 61 55 91 North West Mezam Bossah
50 Kameni - North West Mezam Bossah
51 Tebo Samuel - North West Mezam Bossah
52 Linus Neba 75 61 09 93 North West Mezam Bossah
53 Nelson 79 12 34 53 North West Mezam Bossah
54 Nah Melonie 95 70 89 68 North West Mezam Bossah
55 Linda Tah - North West Mezam Bossah
56 Lafé Georges 94 71 43 54 North West Mezam Bossah
57 Ndozeng Michel - Est Lom et Djerem Ekombitié
58 Naman Raymond - Est Lom et Djerem Ekombitié
59 Amougou Robert - Est Lom et Djerem Ekombitié
60 Gpop Angeline 73 18 23 21 Est Lom et Djerem Ekombitié
61 Bolle Jean Christian - Est Lom et Djerem Ekombitié
62 Ndengue Ndanga Yohana
- Est Lom et Djerem Ekombitié
63 Mbolè Mbarbe Ambroise
- Est Lom et Djerem Ekombitié
64 Fadimata - Extrême Nord Diamaré Goubewo
65 Goliké Pierre 93 28 94 04 Est Lom et Djerem Koumé Goffi
66 Madé - Est Lom et Djerem Koumé Goffi
67 Ketaré Gaston - Est Lom et Djerem Koumé Goffi
68 Metsama Geremie - Est Lom et Djerem Koumé Goffi
69 Souleymanou - Extrême Nord Diamaré Mambang
70 Louti - Extrême Nord Diamaré Mambang
71 Goi-Goi Extrême Nord Diamaré Mambang
72 Saibou Abdoulaye 97 69 05 26 Extrême Nord Diamaré Mambang
73 Abilékélé - Extrême Nord Diamaré Mambang
74 Haman - Extrême Nord Diamaré Mambang
75 Lalde - Extrême Nord Diamaré Mambang
45
Annex II: List of focus group meetings and attendees Maroua (Dec. 3, 2012)
Ndongsok Durando
S2 Services Directeur Général 99 00 80 27 / 79 52 61 20
Houdini Jean Claude Bouba
S2 Services Stagiaire 96 86 66 08 / 73 10 77 92
Haoua Fanta Goggo Petel
MINPMEESA Chef service Economie Sociale REP DR MINPMEESAEN
94 59 75 13 [email protected]
Souleymanou Yero
CAR S.G 97 76 04 04
Bukam kamsen Solkamtech DG 73 32 50 33 [email protected]
Tchaya Guy Bertrand
Institut Superior Sahel
Enseignant 99 51 12 94 [email protected]
Sali Ahmadou COPRESSA Responsable Administratif financier
99 79 95 25 [email protected]/[email protected]
Hara Taidi PRODEBALT Coordonnateur 99 52 49 91 [email protected]
Leubou Mohto Rodrigue
MINEE Maintenancier Informatique
99 23 23 16 / 33 08 49 13
Kilbat Jean CTA Directeur 99 62 66 22 [email protected]
Mme YOUNOUSSOU REHANA
MINFI chef service solde et pensions
99 65 26 51 / 74 98 36 36
Platini MEVA'A MINEPDED / EN
chef de service CPM
94 79 97 87 [email protected]
Bertoua (Dec. 7, 2012)
Ndongsok Durando
S2 Services Directeur Général [email protected]
Koulbout David CRRI-EST Chef de Centre [email protected]
Elizabeth Obase
MINPROFF Service des Affaires Générales
Aloma Martin Bienvenue
DRPMEESA/EST
Délégué 99 70 85 [email protected]
Benamo Mireille
Rep. Del. MINEPDED
Mme Zebsa Mireille
CRRI-EST Chef Service R. SCTFQ
99 56 96 93 [email protected]
Djiokeng Pierre Marie
AMAF /OC Chef d'antenne 77 93 41 55 [email protected]
Yaya Bouba CREADEV Consultant 97 98 66 82
Mme Mpouam Chantal
Restitute GIC Enseignante 99 77 69 86 / 96 25 13
46
60
Moampea M. Fernande
GIC/ UNITE DYNAMIQUE
Délégué GIC/ UNITE DYNAMIQUE
70 91 67 22 / 99 96 22 91
Mme Zang Cécile
GIC Eveil Mbang
Trèsorière
Mme Epone Edith
GIC Bafamba Mbang
membre
Ekanga Ambroise
ASS. LA VIE+Doumé
président 96 72 47 35 / 70 56 86 20
Menkolou Jean Hilaire
GIC mère Poule
délégué 74 32 75 56
Nkene Celestine
STEP délégué 99 43 53 47 / 70 06 94 27
Penda Eric ONE President 74 57 99 94 / 96 91 76 77
Yaoundé (Dec. 11, 2012)
Ndongsok Durando
S2 Services Directeur Général 99 00 80 27/ 79 52 61 20
Joseph OLINGA
S2 Services Project Manager 96 62 02 02 [email protected]
Batiiabene Félix
INSTRUMELEC
Area sale Manager
99 92 54 41 [email protected]
Régis Priso CED Project Manager 99 67 63 44 [email protected]
Ebanda Jean Baptist
Energies renouvelable du Cameroon
Représentant 22230160 [email protected]
Jean Eric Ndi Systemes photovoltatic
Directeur 70042100 [email protected]
Jamil Shariff SNV RE coordinator [email protected]
Constant Bernard
BERCOTECH
Promoteur 79 39 06 61 / 97 21 14 91
Bamenda (Dec. 18, 2012)
Ndongsok Durando
S2 Services Directeur Général 99 00 80 27 / 79 52 61 20
Joseph OLINGA
S2 Services Project Manager 96 62 02 02 [email protected]
Momo Fani S2 Services Intern 97 89 80 82 [email protected]
Fung Fidelis. K MINEPDED Representing RD MINE
74 03 13 70 [email protected]
47
Nsahdzeyuf Jude Leh
GREENERY CEO 77 68 55 14 / 94 71 88 94
Ngoupayou Chouaibou
MINPMEESA Representant DR MINPMEESA
70 29 69 94 [email protected]
Essola Pouline C.
MINEE Representation OFRD MINEE-NW
75 12 55 02 [email protected]
Gisèla Berinyny
SHUMAS Programs coordinator
77 75 56 30
Asanji Magdalen
MBOSCUDA Field Staf Womens Program
75 72 62 65
Judy Ngweh Abong
MINPROFF R.D. 77 45 62 29 [email protected]
Tobias Verla INSTITUTE OF INDUSTRIAL REFORMARTION
REPRESENTATIVE
74 84 94 65
48
Annex III: Potential group 2 actors that supported the research Company Products Contact
person Tel/email
1 Center for Environment and Development
No specific product. NGO interested in the market
Regis Priso Essawe
74148151 [email protected]
2 BERCOTECH Sarl
SHS Constant Bernard
97211491 [email protected]
3 Light 4 All Cameroon
Association supporting its member in the distribution of any solar lighting product
Dr. Maxime Kamdem Kamdem
99968833 [email protected]
4 Light 4 All Production SA
Local assembly of pico-PV products
Henk Hoefsloot
5 S2 Services Sarl Nuru technology Hervé Azemtsa
97475493 [email protected]
6 SOLKAMTECH SHS Serge Bukam Kamseu
7 Systeme Photovoltaic
SHS Jean Eric Ndi 70042100 [email protected]
8 Total Cameroon d.light products Regine Epee 99912207 [email protected]