Africa is home to 590 million people with no connection to an electric grid. Most people rely on kerosene lamps which is not only dangerous due to fire, it also pollutes the indoor climate.
Accelerating off-grid electricity
BESTSELLER FOUNDATION provides a grant to M-Kopa Solar which delivers "pay as you go" energy to off-grid customers.
The grant will enable M-Kopa Solar to purchase 8,300 new solar power units that they will distribute and sell at affordable price to poor households in East Africa.
Affordable electricity - not free
It does not empower people to receive things for free, so the solar units will be sold via the M-Kopa's distribution channels.
The customers pay a deposit of $35 of to buy the solar-powered unit followed by mobile banking tranfers of $0.45 per day for one year. The costumers have one year to pay a total of $200. When the money is paid, they own the unit.
Grant & Working capital
The payment from the customers that buy the 8,300 solar power units from M-Kopa units will be returned into a specific BESTSELLER account which will be recycled into working capital for additional customers during the grant term.
As the 'working capital cycle' is approximately 9 months, there will be four full cycles of the USD 706,000 during a three year grant term. Therefore, a total of 33,200 units are expected to be purchased with the grant funds benefiting approximately 165,000 individuals assuming that a family consist of five persons or more.
The grant is working in four cycles within three years making it possible to distribute lights to approximately 165,000 persons.