PEG Africa est une jeune compagnie de distribution de panneaux solaires dans les communautés rurales et péri-urbaines d''Afrique de l''Ouest. L''entreprise fonctionne sur la base d''un paiement quotidien par les utilisateurs (moins de 50 centimes par jour), qui en deviennent propriétaires une fois le système payé dans son intégralité. La société a démarré ses activités au Ghana.
PEG s''est associé à M-KOPA, le leader sur le marché des technologies solaires pay-as-you-go en Afrique. M-KOPA a ainsi développé ses produits et sa méthodologie auprès de plus de 200000 foyers en Afrique de l''Est.
Hugh Whalan, PDG de l''entreprise, travaille sur les enjeux de l''énergie et du financement en Afrique de l''Ouest depuis plus de 6 ans. Il a lancé le premier site de crowdfunding dédié à l''énergie et une entreprise de distribution de produits solaire au Ghana, qu''il a revendu à un investisseur basé à New-York. Il occupait précédemment la fonction de directeur de développement commercial au sein d''une des entreprises américaines leader sur le marché des crédits carbone.
Nate Heller, Chief Operating Officer de l''entreprise, a plus de 13 ans d''expérience en développement international, au sein des Nations Unies et de multiples entreprises sociales. Il a passé 6 ans à développer des canaux de distributions innovants pour les consommateurs à bas revenus en Afrique de l''Ouest.
Solar power has the potential to revolutionize water use in agriculture, providing an attractive means for farmers to irrigate their crops. This is especially the case in sub-Saharan Africa, which has among the lowest electrification access in the world and irrigation potential in dry-land regions of an additional 6-14 million hectares, 84 percentof which is small-scale irrigation.
Private sector companies are eager to capitalize on this potential by expanding the market for small-scale solar irrigation. For these companies,serving small-scale irrigators, who have traditionally been perceived as high risk,can beprofitableif the right business models are applied.
In 2019, we decided to add solar water pumps to our product line, using the same financing and after-sales model. The decision followed a series of field-based tests we conducted in Ghana to verify the suitability of the technology as well as market surveys to understand demand for solar pumps among small-scale irrigators in rural and peri-urban areas.
The results showed that there is a considerable level of demand as the solar pumps offer an affordable and efficient alternative to conventional diesel pumps, which are costly to maintain, have a shorter lifespan, and can have adverse health and environmental effects. Moreover, we were aware that women farmerstend to prefer solar pumps to other water-lifting technologiesbecause theydecreasethe labor required to extract water for domestic and other uses such as agriculture.
These findings served as a strong basis for PEG Africa to venture into the sale of solar pumps, although we continue to encounter significant barriers to the adoption and scaling of the technology.
We identified two main challenges. The first is limited input and output market linkages (poorly developed distribution channels, inadequate input supply, information asymmetry with regard to determining price, and securing markets for produce), which ultimately constrain farmers'' productivity and profitability. The second is gender-based constraints to information and financial resources that affect women''s ability to invest in solar irrigation technologies.
Anewagreementaimsto facilitate the development of innovative solutions to these challenges by de-risking private sector engagement in small-scale irrigation. Initiated by the USAID-fundedFeed the Future Innovation LabForSmall Scale Irrigation(ILSSI), the agreement comes with a monetary award of USD 725,000 to support the trial of new business and financing models over three years.
Following acall for proposals, PEG Africawas announced astherecipientof the award on August27, 2020during the second Farmer-Led Irrigation–Multi-StakeholderDialogueevent in Ghana. Hosted by IWMI, which leads ILSSI''s scaling research, the dialogues bring together relevant actors, including the private sector, tokickstart system-level collaboration on scaling small-scale irrigation.
To complement the award, IWMI identified pitching contests as a novel way to build capacity in the private sector.Targeting young professionals and recent graduates, the contests aim to closethe research-private sector divide, drive innovation, and stimulate entrepreneurship.The first contest is being held in October 2020, and two winners will be selected to undertake a paid internship with PEG Africa in Ghana. Additional contests will be organized over the next three years.
In determining thewinners, the selection committee willlook for solutions thatbridge specificknowledge and capacitygaps within PEG Africa. Currently, these relate to business innovations that address the barriers to equitable solar pump access and adoption. In addition, we anticipate that the interns will help us to establish a framework to track the impact of pump use on farmers through return-on-investment, gross margin and cost-benefit studies.
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