Solar Lanterns and Emesco Development Foundation
Emesco Development Foundation is bringing solar power to Kibaale District. This is a significant step. Emesco’s work has until now, been completely donor funded and has been confined to the fields of agriculture, water and sanitation, and healthcare. Confined is probably the wrong word since this is an extremely broad remit for a development organisation and represents the sharp edge of some pioneering work to kick-start the discredited ‘integrated development movement’ from the 80s.
Integrated Development basically involves organising development efforts regionally rather than by sector. So instead of specialising in health, or sanitation, or agriculture, an organisation concentrates efforts in all these variegated fields within a specifically chosen location. A problem with this approach in the 80s was that once the projects had been implemented the agencies moved on and any improvements stagnated or reversed. But these were foreign agencies in a time of arrogant policy making from Milton-inspired World Bank economists.
This error is unlikely to be repeated here in Karuguuza. The reason is the uniqueness of Emesco Devlepment Foundation. It is led by a business man and social worker, raised as a child within Karuguuza. Emely Kugonza defines his life by his success in achieving the economic and social development of Kibaale District. Emely Kugonza’s business interests and the interests of Kibaale District dovetail since all of his investments are within the area meaning that Kibaale District’s development raises the value of his own personal investments. As a consequence Emely Kugonza as the leader of Emesco Development Foundation and as a businessman has a great deal invested in continuing his work toward Kibaale District’s social and economic development. In other words, Emely and Emesco are here to stay.
Nonetheless, Emesco Development Foundation is entirely funded by international donors who allocate funds on the basis of specific policy platforms. Integrated Development does not currently feature highly in these platforms. Most donors specialise in one field or another within a constellation that includes: health, education, children, etc. Emesco must warp its fundraising efforts and project implementations to the requirements of the donors. It is a constant struggle to implement projects in the manner that Emesco and its constituents understand as best for Kibaale District. This is symbolic of the wider power relationship between donors and aid recipients; and further, between the western world and the developing world.
Emesco Development Foundation is a Ugandan organisation that has a profound impact on Kibaale District. It coordinates its activities with the District to avoid overlap of resource allocation and is the major social care provider after the government. Consisting of about 20 staff, it benefits 90,000 people annually with its training and infrastructure schemes. This is a very efficient use of resources. Working within this organisation, I serve a Ugandan leader of an organisation that is extremely important to Ugandans, working toward achieving the Emesco vision of Kibaale’s future.
The first part of my relationship with Emesco consisted of negotiating what exactly I had to offer to the organisation and to Kibaale District at large. This negotiation has now been resolved and it fits within the broader context of the preceding paragraphs. Emesco’s relationship with its international partners is very good. This is because it is extremely efficient at leveraging its funding to achieve maximum benefits to the rural communities with whom it works. However, this does not change the fact that Emesco and therefore its partner communities are reliant on international aid for continuance. How can Emesco bring sustainability to its own operations as well as to the manner in which its partner communities improve their circumstances? In a capitalist world, the answer lies in business.
Solar Lanterns
The cost of solar power has dramatically reduced over the past decade. In the past few years we have reached a point where solar lanterns together with a specifically designed solar panel can be manufactured at costs commensurate to retails prices reachable by subsistence farmers in Africa.
Extending the national grid to rural locations is as yet unfeasible without unaffordable government subsidies since the returns on the capital expenditure required to reach isolated communities are too small to warrant the investment. This is where solar lanterns become relevant. Rather than asking consumers to purchase electricity as a product, consumers can purchase products that function from their own source of electricity. Solar lanterns are an example of such a product.
Solar Lanterns and Integrated Community Development
Emesco seeks to bring improvements to its constituents in all areas of their lives. The provision of energy to the citizens of Kibaale District has not previously been included in Emesco’s agenda due to the costs involved and the special expertise required. With the advent of easy to use solar lanterns, energy provision has now become possible and Emesco has launched an entirely new segment to its 360 degree development agenda.
The Rationale of the Product
Lighting in rural Africa is predominantly provided by kerosene or paraffin lamps. The light produced by paraffin lamps is dim and they are a leading cause of household accidents due to breaking glass as well as fires due to the flammability of paraffin. The largest drawback to paraffin lamps is that their use represents a constant drain on a household’s economic resources. Use paraffin lamps for a few hours lighting every night costs a household between 1,500UGX and 4,000UGX in paraffin purchases per week. Where paraffin lamps are used, an additional cost to households is the payment of mobile phone charging stations for the recharge of mobile phones. It can cost an individual between 500UGX and 1,000UGX per recharge at a solar powered charging station.
Subsistence farming is the dominant form of sustenance in Kibaale District. 2,289UGX is the current exchange rate to US$1. Most of these farmers live on about US$1 per day. Therefore the costs of phone charging and paraffin purchases represent a significant drain on their economic resources.
After extensive research, consultation, consumer research, and product testing, Emesco Development Foundation has committed to supplying the citizens of Kibaale District with the Firefly 12 Mobile solar lantern, manufactured by Barefoot Power.
The Firefly 12 Mobile is an angle poise lantern with a very bright light suitable for reading or effectively lighting up a room. Additionally it is capable of charging mobile phones and the product arrives with 7 different mobile phone jacks to serve the wide range of mobile used in Uganda. Finally the product arrives with its own polycrystalline 1.5 Watt solar panel that charges the solar lantern during the daytime via a 4 meter cable.
The lantern retails for 47,000UGX and once purchased it should nullify the costs of paraffin and mobile phone charging described earlier in this section. The average amortisation rate of the solar lantern’s costs stands at 19 weeks. After this point families should find themselves 2,500UGX richer per week. The expected life cycle o the Firefly 12 Mobile lantern is 2 years. If a family saves 2,500UGX per week through use of the solar lantern it will end up saving 210,000UGX over the lantern’s expected lifetime taking into account the costs of purchasing the lantern.
Solar Lanterns and Regulation
There have been troubles brought about by poor quality solar products being flogged to rural communities and this has undermined consumer trust of the technology in some parts of the world. However, a range of international NGOs such as Lighting Africa, Global Village Energy Partnership, GTZ and the Rural Energy Foundation have been implementing research exercises and conducting product competitions. These exercises have effectively served to regulate a highly unregulated international market, offering quality control and direction to entrepreneurs aiming to supply solar power to the rural poor.
Such exercises drive down the costs of starting up a solar business since entrepreneurs have an instant guide to the differences between the various products on the market as well as a trustworthy source of information for quality control.
Narrowing down the choice of products to supply to the citizens of Kibaale District was a tough call, until I came into contact with these NGOs.
The Model
Emesco essentially acts as a facilitator and regulator of the solar lantern market in Kibaale District. It’s entrail-like connections into the heart of rural poverty mean it is able to penetrate small isolated markets that would otherwise remain unapproachable to the average business.
Emesco’s size and purchasing power mean that it is able to drive down the costs of supplying solar lanterns to Kibaale District. It passes on these lanterns to those suppliers, non-profit and for-profit, who in turn develop a business model that works for them.
In this model you can view Emesco as a central hub of lantern supply and a regulator that does the ground-work regarding quality control and conducting research into consumer preference for the various products on offer. With this background investment done, retailers can now purchase a product with the peace of mind that it will be in demand and they won’t have to deal with the results of low quality manufacturing or unsuitability to the specific conditions of Kibaale District.
Emesco and the Kibaale Community Health Volunteers Association
Emesco is currently supplying solar lanterns to the Kibaale Community Health Volunteers Association (KCHVA). This is a local Savings and Credit Cooperative (SACCO) which was established a year ago as part of the sustainability angle to Emesco’s Gorta-funded Integrated Community Healthcare Programme. The KCHVA charges an annual membership fee to those Community Health Workers (CHWs) and Traditional Birth Attendants (TBAs) that have been trained by Emesco in the past 7 years of this programme.
The KCHVA has been struggling to find activities and relevance as an organisation. Solar Lanterns have radically altered this situation, simultaneously offering it a chance to increase the capital available to its members as loans as well as providing it with a means of generating benefits for isolated rural communities.
The KCHVA purchases lanterns from Emesco in bulk, selling them on at a margin to any Community Health Workers or Traditional Birth Attendants that want them. Hailing from some of the most isolated communities in Kibaale District, these CHWs and TBAs can embark on micro-franchises, selling on the lanterns at recommended retail price and generating a profit.
This model is particularly beautiful to me because at every level of the value chain Kibaale District benefits, except the necessary purchase from the supplier in Kampala. Emesco branches into sustainable project activities and generates a small return from the resale of lanterns to the KCHVA. This return can fund core activities and is a step in the right direction toward independence from international donors. The KCHVA gains relevance and increases its capital base which in turn is directly reinvested in local communities in the form of pro-poor micro-credit. The KCHVA’s members who become micro-franchisees generate income for themselves which can be spent in their local communities. Finally, the end users who purchase from the micro-franchisees enjoy the benefit of the product which includes the release of over US$1 per week as described above in the section: “Rationale of the Product”. This money will also circulate in the local economy as people use it to serve other needs.
An additional benefit is gained for the partners in this project: business and management skills. Since the project’s implementation I have had to work very closely with the board of the KCHVA to ensure accurate record-keeping and to minimise the risk that is introduced to the KCHVA’s funds through its lending practices to members who wish to embark on micro-franchise enterprises. This has not been easy and was not predicted. Nonetheless, once a system has been implemented, it will be invaluable to the Board (derived from CHWs and TBAs) in developing their business management skills. The same goes for micro-franchisees who will rapidly learn how to manage debt and supply and demand. Emesco Development Foundation will benefit from its first experience in managing a sustainable business development project. As its experience grows it will find further means of improving the lives of Kibaale District’s citizens without the necessity of relying on international donors.
Emesco Development Foundation and Starlight Services
The primary constraint to supply of lanterns from working with the KCHVA is a lack of capital. The KCHVA cannot purchase lanterns in huge quantities and does not have the remit to borrow funds to do so. With lanterns understood as a social good providing key benefits to the community, market saturation is crucial to maximising their positive impact in Kibaale District. Emesco has therefore partnered with a for-profit organisation named Starlight Services.
Starlight Services consists of a range of retail outlets in petrol stations dotted around Kibaale District. Focused mainly in the less rural areas of Kibaale, Starlight Services has been chosen to serve a different market to that of the KCHVA.
Starlight Services is able to invest in high quantities of products and radio advertising meaning that solar lanterns are currently flying off the shelves. In the first week of the Solar Lantern Project Launch, 100 lanterns were sold. An additional order has been put in to the supplier and the aim is to sell 1,000 lanterns by the end of December. It has been an auspicious start, and Emely Kugonza has proclaimed that solar lanterns are Emesco’s Ten Year project and will be celebrated as such on our Ten Year Anniversary Celebrations, held in Karuguuza on Friday 3rd December.

