EXIT-ENERGY

Salma Bougoune is born on 1974 from the marriage  of Deke Abra, my mother who was a teacher  and Houssou Bougoune, my father who was a police officer. My father died when I was 6 years old. I was taken to village en stay with my oncle's and ants where I have experienced poverty  and Orpheus conditions for 8 years. After graduating in secondary school that in my village called boade, in extreme north of Togo, my oncle's let me go stay with my mother at Sokode in central region where I obtained by bachelor degree in science in Lycée moderne de Sokode in 1996. After one year in Lome university where a was studying economic science, I decided to drop out and learn repairs of home appliances to support myself and help my mother. I'm married and father of 3 children. I'm the formal technical-commercial of OSMER.

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The problem I committed to solve is access to energy for all rural households of Togo plateau region.  

My solution to address this issue is combination of affordability, local micro-franchise distribution and partnership with microfinance.          Rural households are small farmer with low income which is not allowing them to purchase a standard solar lighting system because of its high cost. The basic offer of solar kit in PAYGO mode of 0.29 dollar per day practiced by the active operators is inaccessible to 70% of rural households. Our lighting system is affordable  and sustainable.It allows households to gain 212USD in purchase compare to competitors.In the scale of plateau region the gain is about 35 million dollars.This gain can be used to improve community healthcare, improve quality of education, build rural roads, create more job  for youths and at all make the social economic more inclusive end resilient.

The main problem is the affordabbility of sustainable solar lighting systems. The power purchase party for energy in rural Togo is 0.15 dollars a day.But the penetration price practiced by the licenced operators despite the subvention of government is 0.29 dollars per day. This price is inaccessible to 70% of 300000 households of plateau region and 950000 households in the whole Togo. The rural communities are small holder with seasonal low income which is not allowing them to purshase large solar power system over 20Watts as the government indicated in its strategic plan for access to energy.The GDP off Togo is 617USD and the majority of Togolese are living under poverty line with less than two dollars a day.If we stick at this price of 0.29 USD dollars a day, only 14% of households in rural areas of Togo can access sustainable energy according to IFC report" Togo-off-grid-market-assessment". So the sustainable development goal 7 cannot be attained by 2030 without affordable price and appropriate taylored kit that meet the purshase power party of households living in rural areas of Togo.

Our offer is  two years warranted Solar Kit named D330. The D330 is an ergonomic domestic solar system from the manufacturer D.LIGHT certified Lighting Global with capacity to recharge a smart phone.It is composed of three adjustable brightness bulbs whose autonomy is 4h at maximum brightness. In energy saving mode, our D330 kit offers the possibility of adding a lamp, a torch and a radio. Thus D330 integrates cultural end economical needs in rural areas for the most part.Our solar kit can be acquired for cash at the price of 106USD. This price corresponds to a payment of 0.145USD per day for two years and represents a third of the current equivalent offer on the market of solar kits in Togo. After-sales service is free during the warranty period and the customer is responsible after this period.

To avoid e-waste impacts on environment, we require the customer, through a duly signed contract, to bring us the product at the end of its life for recycling by our competent services.

Our customers are off-grid households living in rural areas of plateau region of Togo. The potential of plateau region off-grid customers is estimated to be nearly 300000 households. Only 56% of the 300,000 households of plateau will be able to spend 0.15USD per day to pay for the acquisition of solar kits, My goal is to open a distribution point in the city of Atakpamé, a crossroads city in the plateaux region, with the aim of winning 10.5% of the customer base for Solar Kits, . These customers are located in the many peripheral villages of the city of Atakpamé within a 25 km radius so that within 1 hour, I can serve a customer. My clients are adults from 18 to 60 years old who can prove a minimum permanent or temporary source of income of 600USD per year. I'm sensitising them to the climate change, to the impact of using kerosene lamps on health and the environmental impact of using and improperly disposing torch batteries. I'm sensitising them to the need and benefits of adopting clean energy lighting systems. Many of them are convinced and are well ready to opt solar energy lighting systems.

My project is focus on access to energy for people living in rural areas of Togo where more than 90% of people's live with less than 2 dollars a day. Their power purchase power is not exceeded 0.15 USD . Most of their activities are seasonal and this situation making difficult to rise cash money to purshase good.As they are living in sparse areas where rounds to access them is a challenge,supplying affordable and sustainable Pico solar system distributed by local franchisee's under microfinance funding is what will create growth in these communities.

The story starts from my friend Daniel living in USA who advice me to go to solar when I was asking him to support my electronic parts business with loan in 2017. It is in his contact I discover the impact of greenhouse gas on climate change and what causes these changes in our region. It is also with Daniel the CEO of In3 Finance Group I discover sustainable development goals and how the goal7, access to energy for all, can tackle climate change, provides economic growth and social development in our local community where people use charcoal, wood and kerosene and battery powered lantern for their energy needs. In 2018 , I launch OSMER S.A.R.L, a company which objective is to build and distribute solar energy based equipment's. But I haven't got any skills in solar system.In 2019, I learned how to install and manage off-grid solar equipments. I'm sensitive to poverty of people's living in rural areas because I experienced it. That is why I decided to find the best way to apply solar energy to change their lives. From Togo national strategy for rural electrification,Word Bank and Lighting Global report I found my business model.

Alleviating poverty become one of my goal since I was sensitised on SDGs. The skills I have in electronic repairs and training I have in solar systems management, both technical and entrepreneurial skills, allow me to focus on SDG7. 

The plateau region of Togo is the region where access to energy for rural communities is most critical. 30% of people's who don't have access to electricity in rural Togo live in plateau region. But this region ,after Maritime region, is the second region of Togo with high power purchase party . The combination of these two factors makes plateau region the convenient region for the success of my business model. As my company is based in Lome, it is relatively easy to join plateau region within 2 hours and ease business constraints. Plateau region also has high rate on production of fruits vegetables and fish to accommodate by families, my team and employees.

I'm well positioned because my technical skills, my 15 experiences in business management, my contacts and my deep knowledge of local community my passion to serve SDG7 are keys to solve the problem.

I'm the formal technical and commercial manager of OSMER  SARL since 2018.In this position I have win two tender and deliver service to government institutions where I win attestation of good supply. In this position I ensure customers relationship management with more than 200 costumers in my portfolio.

I'm also in charge of Stock supply, training of sales people. Public relation management

I have manage from 2006-2017 my own company named ELECTRO MODERNE. The company were selling electronic components and spare parts. In the position of Head of establishment my missions or tasks carried out is to ensure stock & supply, customer relationship management, administrative and accounting management, recruitment and training of sales agents.

From 2000-2006, I have held workshop of maintenance and repairs of electrical and electronic equipment's. In the position of Workshop manager I had performed in electronic faults diagnostic, production of assessment's for the clients, organising the logical steps necessary for the execution of the work, repairing the electrical system, assessing the proper work of the electrical system as well as the proper functioning of the 'appliance, finalizing the repair of the electrical system.

I own many executive educations in entrepreneurship, environment, management and communication.

On 2018 ,I have won a bid of supplying and installing 40 air conditioners in Lome sea port. I have no cash in my account, I haven't installed air conditioner before,I have signed agreement to supply and install these air conditioners withing one month.

I have got loan from my current microfinance institute but the loan is not sufficient to buy the whole 40 air conditioners. I was obliged to open I new account in another microfinance institute's to get the additional money to buy the remaining air conditioners without any bank literacy. I met credit manager and discussed with him, insisted to borrow me the money. Despite the fact that it was my first time to install air conditioners, I finally got the money and supplied the good. I have successfully negotiated with the sea port project manager the postponing of Aircon installation but  my formal technician have traveled and not available. I have got another technician out of my network to install the 40 air conditioners in speed of service.

I have finally succeeded the installation and be paid. I paid back my two loans and get approval of good installation. 

On 2019, I were participating on executive training called EMPROTEC organized by ANPGF, an agency that support entrepreneurial skills building. We have been gathered my 5 to do an exercise. Firstly the exercise have to be done solely and secondly the exercise is done together. 5 groupes have been formed. From the solely done  exercise, I have got a middle score. But working in the group I managed it took our group score in the better level. Among the 5 groups, my leadership score surpass highly others leaders score. That very day, my leadership was scientifically established and we don't even know that the exercise is for measuring leadership profile. I was very proud of that because it was publicly shone that I have not only a leadership but my leadership surpass other leaders. I was not the most educated among the participants but I was the one who got the spirit to take them to the best destination. 

The disruption comes from the combination of affordability, local based micro- franchise distribution model and microfinance end-users financing.

The purshase power of energy in rural areas of Togo is 0.15USD per day. The penetration price of access to solar energy practiced by our competitors is 0.29 and this situation is puting 70% of house hold out of access to solar energy. My offer is 0.145 USD per day. This price is affordable to 56% of rural households in cash basis or throughout microfinance loans. I'm partnering with missmiddle financial institute's called SOGEMEF to issue a voucher to end-users for patient payback of their loans. The cooperation will increase the microfranchise customers portfolio, produce costumers data and bank literacy useful for all stakeholders specifically end-users who can borrow money for their future activities.

End-users don't have to go far and buy their solar kits. Our solar kits are sold to them by local agents recruited from their community and trained to meet high grade customer's service. This distribution model gives confidence to customer and low down purshase price for customer. This model really elevates rural customer by producing wellbeing throughout affordable and sustainable solar kits that they pay friendly from community based independent contractors.Our social model builds long-term relationship with customer and allow supply of more solar products and social goods.

The combination of affordabbility, local based distribution model and microfinance financing show that our model is designed for Speed Of Service to last mile customers.

My theory of change in poverty alleviation context stand on stakeholders actions.

Adopting new habits takes time. My great efforts will go to sensitising. I will first start leasten prospect to understand their needs. Secondly, I will explain what is climate change and what causes it and it's consequences in human being. After that I will show to my prospect why it  is urgent to take action. I will demonstrate how his personal action in his house can change the global impact. I will demonstrate to him how salar can power all his social and productive activities.

If the customer is convinced then he can change his habit and advise other people's to do so. from one person convainced who buy and experienced our product from tooth mouths and catalysing their testimony with our powerful marketing tools the project will scale not only in plateau region but in the whole Togo. The product have to be available and it is money matters.

Grant and patient capital have to put on the tables of social enterprises to help them build sustainable business infrastructure that can fight poverty successfully.

There will be no change without technology transfer. The know-how in developed countries have to be transferred in my local business to make it speed for the prosperity of the customers I serve.

Policymakers have to increase their pressure on developing countries government to adopt good governance and really sensitise  administration and population to adopt good practices.

Enterprises and end-users should have access to sustainable capital. The classic paradigms used to secure loans cannot bring the change we want to see.

The covid19 pandemic shows that health is not geographic concerns but global. Solidarity is the key for prosperity and security. Without solidarity for people living in developing countries, the climate change impacts will affect developed countries and slow down their economy and social development.

The sustainable development goals are not a choice if we want change in good direction.

For me the theory of change is based on sustainable development goals implementation. That is all.

The off-grid households in rural plateau is estimated at 300000.Only 56% of the 300,000 households will be able to spend 0.15USD per day to pay for the acquisition of solar kits, or 168,000 households in the plateau region. My goal is to open a distribution point in the city of Atakpamé, a crossroads city in the plateaux region, with the aim of winning 10.5% of the customer base for Solar Kits, ie 17,586 households by 2025. My current number of households served is 500. The objective within one years is to reach 2,880 households in the first year and 17,586 in 5 years. This business plan is therefore for a period of two years. Each following year will experience an average increase of 10%. These customers are located in the many peripheral villages of the city of Atakpamé within a 25 km radius so that within 1 hour, I can serve a customer. My clients are adults from 18 to 60 years old who can prove a minimum permanent or temporary source of income of 300,000f per year.

With our model, the client saves 212USD compared to current model and can invest in the education of their children or in their general well-being. On the scale of the plateau region, our model could save 35,616,000USD. Our kit is accessible to 56% of households outside the network. This will have a positive impact on the local economy, on the academic success rate and the reduction of learners' dropout. Reducing the health nuisance of petroleum smoke thus preserving families and the state of investment in health care. The community will experience a significant reduction in torch battery discharge, thereby preserving the environment from electronic waste pollution. Our business model creats descent works for local franchesee who earn more thab 7 dollars a day compare to less than 2 dollars day in rural Togo. 

My plan is based on local micro-franchise. We recruite and train local opinion leaders for our last mile distribution. Micro franchisee are responsable for in ground commercial end technical activities. The local micro-franchise help to low-down distribution costs, remove linguistic barriers and facilitate sensitenzing. To accelerate women development and peer to peer enrollment, 70% of our franchesees will be women. A great number of franchisees is needed to accelerate the curve of access  to sustainable energy. So in the pilot stage 35 franchisees are needed and each franchise must sell 5 kits every week and earn 10% of his or her sales in commission.

Road to reach plateau rural areas are not good and population is sparse. The business as usual in Togo is to stay in shop and wait for the customer. The problem there is that rural customers are not awared of the product by the distributors in the cities. Consequently, many distributors are not able to reach a large amount of people. Secondly, rural plateau is multi lingual speaking and many distributors are not prepared to address this issue. Thirdly, solar energy goods are not well kown by rural communities  mostly uninstruited and are experiencing under standard solar lighting system sold by informal sellers. Futhermore, rural households are small farmer with low seasonnal income which is not allowing them to purchase a standard solar lighting system because of  its relatively high cost. The basic offer of solar kit in PAYGO mode of 0.29 dollar per day practiced by the active operator of the moment is inaccessible to 70% of rural households. If we stick to this actual access price , more than 380,000 households in the CIZO program will not have access to electricity in 2030.It is therefore necessary for new players to enter the solar kit market in order to provide offers adapted to the purchasing power of people living in rural areas.

Our offer is  two years warranted Solar Kit named D330. The D330 is an ergonomic domestic solar system from the manufacturer D.LIGHT certified Lighting Global with capacity to recharge a smart phone.It is composed of three adjustable brightness bulbs whose autonomy is 4h at maximum brightness.  The price is affordable 0.145USD per day for two years.After-sales service is free during the warranty period .

The local based distribution will remove some barriers. We recruite and train local opinion leaders for our last mile distribution. Micro franchisee are responsable for in ground commercial end technical activities. The local micro-franchise help to low-down distribution costs, remove linguistic barriers and facilitate sensitenzing. A great number of franchisees is needed to accelerate the curve of access  to sustainable energy. 

For customers who cannot bring it all together we are in partnership with micro finance locally ready to offer the client capital at rates very reduced for the acquisition of its kit. Since our customers live in rural areas, 70% to 80% of which do not have "MobileMoney" operators, the PAYGO model is not applicable to our business model.The PAYGO model is replaced by partnership with micro-finance. Indeed, micro-finance has a good coverage rate in the countryside in Togo 43% against 16% in the UEMOA zone.

In practice I usually sell under standard products without tracking bought at Nigeria Idi-Oro market. I don't specialized in particular solar segment. I sell components based solar items: battery, panels, regulators, inverters and accessories. The problems we are facing is that these products are not reliable. The  nominal capacity is over estimated and in practice we face fallers and disappointements of our customers. For the under standard solar good no partnership is needed...For sustainable solar products the partnership is needed and since 2019 d.light allow me to distribute his products. But to be competitive and serve bottom of the pyramid customer we have to buy big quantities to low down the unit price. I never succeeded to get the capital needed to order that big quantities. That is why I have not yet order from d.light. The interested rate is also high from local commercial banks when we want to borrow and we don't have collateral for the money needed to buy these quantities.

I have also discussed with Lagazel Africa representative and he allowed me to distribute Lagazel products but the problem stay the same with d.light 

It is the same thing with Schneider electric solar kits.

I have proforma Invoice in hand but I cannot take action.

My offer is to solve affordability of sustainable energy in plateau rural areas of Togo. People who are concerned are rural low income households with power purchase party of energy estimated at 0.15 dollars a day. The potential market is estimated at 168000 households. My value proposition is 6.5watts solar home system with 3 bright  LED lights Spot and Smartphone charging capacity. This system is certified Lighting Global is supplied by d.light Company with 2 years warranty for customer. OSMER offer free after sale service during warranty période.The product is distributed throughout local trained independent contractors who are paid in commission. The amount of the commission is 10% of each sale. The system is sold at 106USD in cash.But Households who cannot bring it all together will have a voucher offered by our partner SOGEMEF. The business climate in Togo is favorable and the agency AT2ER is playing a key role even if we don't benefit from subvention offer to our 5 licencees competitors. Our price is 0.15 a day compare 0.29 USD from our competitors. Our skilled team is in place to speed and deliver our services to customers. In one year 2880 households Will be served and In five years the number of households we served will attain almost 18000.This will have a positive impact on the local economy, on the academic success rate and the reduction of learners' dropout. Reducing the health nuisance of petroleum smoke thus preserving families and the state of investment in health care. 

The cost of the project is estimated at 129726USD, the promoter undertakes to provide the 25000USD mainly to finance the investments and part of the operation and will request funding. The financing requested consists of a grant 60000USD and a bank or third party loan 44726USD. The funding requested will be used for other fixed assets and stocks of goods. For the financing need, we start on the assumption of having financing with an interest rate of 15%. The ne ilt profit value is estimated 146246 USD. The profitability indice is estimated at 2.86. The recovery period of invested capital is estimated at 1 year 3 months and 8 days. The self financing capacity is estimated at 157327USD after three years of operations. These indicators show the profitability of my business model in long run. But this project cannot takes place without external fund specifically subsides and grant from philanthropic organisation. 

As said previously,  fund are necessary to build the infrastructure needed to perform in last mile customers services. The short term loan with high interest rate and  without reasonable grace period practiced by our local commercial banks and microfinance institute's is not helping addressing services for the poor specifically when supplying sustainable solar goods which need long period of sensitising before adoption. My projet needs grant to speed for the access to sustainable energy for all plateau rural households by 2030. The appropriate funds are equity and grant. 60000USD grant is needed and 45000 equity is needed.

Investors can take share up to 40% of OSMER company capital estimated at 150000USD.

The estimate budget for 2020 is 49500USD.

*18774USD Purchase Of Goods: 

Purchase products start quantity is 240USD kits cost of 78.225USD

*6000USD Staff Salary: only three staff is needed. The project manager, the deputy project manager and the accountant

*1290USD  payroll: is paid for salaries social security for the staff.

 *2676USD depreciation charge: equipment's for office and IT, for repairs and maintenance are subject to depreciation

*7800USD financial charge remboursement: I will borrow 13561USD from bank this year at fixed rate of 15% payable in two years terms ( capital end interest comprised)

*2518USD various charges : miscellaneous charges are taken into account

*276USD municipal taxes: publicity boards to locate our business place is paid.

*5003USD Publicity: flyers, cards, mix-marketing kits, and local advertising are taken into account.

*1308USD Store Rent: an annual renewable rent contract is issued for shop at atakpame.

*552USD electricity bill

*324USD telephone bill

*108USD water bil

*552USD Fuel bill

*660USD Expert: control of third party is needed to cross check our activities.

*108USD cleaning Fourniture 

*120USD Office supplies

*240USD IT supplies

*420USD Purchase of Study And Provision of Services: market study by third party is needed for implementation

*120USD Small Equipment And Tools

*273USD Repairs and maintenance

*246USD Multi-Risk Insurance

*132USD Newspaper subscriptions

The main barrier is financial. My personal capacity is only above 25000 dollars whiles not sufficient to implement 130000 dollars project. I don't have collateral to secure 100000 of dept. If a stack on my capital and local capital access conditions, the green house gas with be continuing to be produced in rural plateau region. People will be continuing using kerosene lanterns and battery powered torch for their lighting.Fumes impact on health and and no recycled batteries with continue to pollute environment. If I win Elevate price I can change energy poverty in rural areas of plateau region. The grant will definitely help me have the fund I need to build and implement my business model.

The advantage of partnering with microfinance outside of broad coverage is the possibility of granting credit to our customers for the acquisition of their solar kits. Microfinance also has the infrastructure in terms of human and legal resources to ensure good credit recovery.

For microfinance, our model allows it to have a large number of clients up to 1000 clients acquired per year through our model. This allows microfinance to increase its loan portfolio and therefore income from our customers.

There are many advantages for the customer: -Temperate payment for the acquisition of their solar kit at a lower cost. 

-Possibility of having future credits with micro-finance.

Our model allows each partner to benefit from tripartite economies of scale while allowing diverse partners to have a formal and reliable database of statistical data on the acquisition of our solar kits and on opening a bank account.

I would like to partner with Global distributors collective GDC, Schneider Electric, D.light , In3 finance Group,GIZ, Energy for impact, UNFCCC AT2ER

-GDC is last mile distribution organisation from whom I can benefit from peer to peer experience, guidance, technical assistance and mentoring.

-Schneider electric off-grid solar kits is one of the best solar kits designed specifically for poverty alleviation in developing world. I can benefit from technical training and market insights.

-D.light is also one of the best supply of solar home systems that fits rural households needs. I can sell d.light products and benefits from market strategy.

-In3 finance Group is the right one that can bring the capital, technical and mentoring to scale my business in the whole West Africa. This group is specialized in impact investment and I have been mentored by its CEO since 2017.

GIZ is one off the best International organizations who is working in ground bringing Know-How to micro and small entreprises to help them overcome market barrier and delivery poverty alleviation goods to the bottom of the pyramid. 

- Energy for impact is my last discovery and I would like to work with this organisation because it can grant money for my speed of service business model.

- UNFCCC is one the organisation that support entreprises invole in distribution or products that reduce green house gas.

AT2ER is Togo government agency that implements rural electrification programs. It can help in sensitising rural population on solar energy.