Eco Trace - Refill & Reuse Model Powered by Digital Passports

In Africa, a significant percentage of households face financial constraints, compelling them to purchase household goods in single-serving sachets rather than in bulk. This practice not only incurs additional costs due to packaging but also perpetuates a cycle of financial strain commonly referred to as the "poverty tax." Despite the desire for more cost-effective options, low-income populations find themselves bound by limited resources and the necessity for portion control offered by smaller sachets.

The prevalence of single-serving sachet purchases among 70% of Africans underscores a systemic issue of financial vulnerability and limited access to affordable household goods. The 15% packaging cost adds a considerable burden, exacerbating the financial strain on already marginalized communities. This perpetuates a cycle where individuals are forced to pay more for everyday essentials, further deepening the economic disparity. Further, the small sachets containers are often thrown away, creating a pollution menace as most of the containers are plastic made and thus increase the amount of litter, thus increasing carbon footprint as 99% of the sachets are non-biodegradable. 

Eco Trace is a digital-based refill system, which we hope it will revolutionize the landscape of retail, especially in low-income communities, thus envisioning a future where everyday consumer products are accessible with reduced plastic packaging. Our aim is to champion the reduction of plastic waste while simultaneously enhancing value for low-income households. Through a dynamic combination of mobile and stationary refill stations, we wish to disrupt traditional retail paradigms, and offer customers the opportunity to refill essential items like soap, shampoo, detergent, cooking oil, and more at a lower cost, with the exclusion of packaging expenses.

Our innovative approach addresses multiple challenges simultaneously. By eliminating plastic packaging, we significantly reduce the carbon footprint associated with traditional retail practices (containers are thrown away after use). Our commitment to reduce plastic pollution aligns with global efforts towards sustainable development and climate action. Moreover, our refill model not only benefits the environment but also translates into tangible savings for our customers, particularly those from low-income backgrounds who often bear the brunt of high retail prices.

At Eco Trace, we recognize that through collaboration and partnership and forging alliances with retail partners and fast-moving consumer goods (FMCG) companies, we create a symbiotic ecosystem where everyone stands to gain. Retail partners benefit from increased foot traffic and customer engagement, while FMCG companies gain access to a novel distribution channel that aligns with their sustainability objectives. Our refill stations serve as hubs of community engagement, fostering meaningful connections between consumers, retailers, and brands as well.

Our concept of a win-win solution, promotes a relationship where economic prosperity coexists harmoniously with environmental management. By empowering low-income households with access to affordable, eco-friendly alternatives, we catalyze positive change at both the individual and societal level. Our refill stations serve as beacons of hope, illustrating that sustainability is not a privilege reserved for the affluent but a fundamental right that should be accessible to all.

In essence, Eco Trace is more than just a retail company; we aim to catalyze change, pioneer new era in consumerism where sustainability and affordability converge. Together, we can revolutionize retail, ushering in a future where every refill is a step towards a cleaner, greener world.

In Kenya, fast-moving consumer goods (FMCG) market has an annual revenue of 10 billion dollars, with a projected 200% growth in consumer good delivery over the next two years. As the refill market gains attention, we anticipate significant opportunities for expansion.

Low-income population in Kenya according to the World Bank, is approximately 36.1% (over 18 million) of Kenya's population who live below the national poverty line. Out of this, 7.8 million people in Kenya lived in extreme poverty, the majority are in in rural areas.

Our primary focus is on low-income and middle-income families who often resort to purchasing sachets due to financial constraints. Our innovative model offers these price-sensitive consumers an average discount of 20%. Through a strategic shift from sachet purchases to our refill system, families stand to save up to $40 annually. This represents a substantial sum for households navigating tight budgets, equivalent to the earnings from eight days of minimum wage work for a family of five especially in low and middle income economies.

By targeting these underserved segments of the market and providing them with cost-effective alternatives, we not only address their immediate financial concerns but also promote sustainable consumption practices. Through education and advocacy, we aim to instill behavior change, encouraging families to adopt refill solutions as a more economical and environmentally friendly option.

As we penetrate these target markets and foster widespread adoption of our refill model, we anticipate a surge in demand for our products and services not just in Kenya, but regionally and globally. With a keen focus on affordability and accessibility, we are well-positioned to capitalize on the opportunities within the evolving FMCG landscape in Kenya and beyond.

Mount Kenya University stands as one of Kenya's largest private not-for-profit research universities, boasting a campus network spanning the country’s major towns and cities, including Nairobi, Thika, Nakuru, Eldoret, Kakamega, Kisumu, Mombasa, and Meru. Our flagship campus, where our product is currently undergoing piloting, is strategically situated in densely populated counties, namely Nairobi (4.3 million inhabitants), Kiambu (2.4 million), Nakuru (2.2 million), and Kakamega (1.9 million). Moreover, in Nairobi, and adjacent counties such as Muranga, Machakos, Embu, Nyeri, and Meru contribute to a combined population of 7.3 million. Notably, within Nairobi lies Kibra, the largest slum, inhabited by nearly 1.5 million people, presenting a unique opportunity for product launch.

Currently at the prototype stage, our concept is undergoing rigorous market testing and piloting. We anticipate substantial growth and market penetration, particularly within Kenya's middle and low-income demographics, totalling over 18 million individuals, who grapple with financial constraints and the environmental repercussions of single-use plastic sachets and containers prevalent in small-weight consumable products. Furthermore, our vision extends beyond Kenya, envisioning global acceptance in similar markets worldwide, driven by increasing consumer demand for sustainable alternatives, regulatory pressures, and heightened environmental awareness.

Recognizing the imminent need for commercialization, we are preparing to scale up production, particularly focusing on refillable containers and the establishment of associated infrastructure such as refill stations. With an approximate 480,000 retail business in Kenya, our project necessitates extensive collaboration, partnerships, and strategic marketing efforts to effectively navigate the entire value chain from production to distribution. We are committed to forging alliances with key stakeholders, identifying supportive partners, and leveraging our expertise to realize our vision of widespread adoption and impact.

Through the introduction of the Aberdare Refill in the heart of Aberdare Kenya: Eco Trace was able to empower shopkeepers to dispense precise amounts of powder or liquid detergents into reusable containers, even down to a few shillings' worth. By offering these products at a 20% discount, Aberdare Refill made essential goods more affordable for low-income earners (through MPesa) of approximately 3,000 residents within the area and more than 200 retailers. Simultaneously, it has promised enhanced sales and profitability for store owners while contributing to the reduction of single-use plastic waste.

We anticipate the imperative for commercializing the prototype and subsequently scaling up production, particularly focusing on the manufacturing of refillable containers and the development of associated infrastructure such as refill stations. This endeavor necessitates collaborative efforts, strategic partnerships, effective product marketing, the establishment of production units, and the identification of supportive partners across the entire value chain.

Some of our challenges currently include;

Financial; Inadequate funds to scale-up prototypes for distribution in our next target in Kibra Slum (Nairobi). Technically, we also need to apply for patent and trademark with the Kenya Bureau of Standards and Kenya Intellectual Property Institute (KIPI). This will enable us to safeguard the innovation. The funds will also assist the team to carry out sensitization among the slum communities and ensure seamless acceptance and embracing the use of the technology. We also hope to bring on board retailers in the Slum areas to adopt the concept and save on time used to serve queues of customers, while reducing the cost of purchasing plastic sachets without the possibility of re-use which our product offers.

The MIT Solve Grant will provide the team with the opportunity to introduce the product in Kibra, one of Africa's largest slums, to gauge its acceptance among the impoverished communities living below the poverty line, not only in Kenya but across the continent. Additionally, the grant will facilitate initiatives aimed at collaborating with industry partners to promote the manufacturing of refill containers and seek collaborative opportunities for large-scale production within Kenya.

Eco Trace leverages on the Internet of Things (IoT) technology. This way, Eco Trace enables comprehensive tracking of products from their initial distribution to their sale in kiosks, providing retailers with invaluable real-time insights into inventory levels and facilitating prompt restocking to bolster supply chain resilience. This real-time visibility not only optimizes inventory management but also enhances operational efficiency, ensuring that retailers can meet consumer demand with precision and agility.

Using Programmable Logic Control (PLC), we will empower retailers with unparalleled control over key aspects of their operations. From price setting and calibration to the generation of detailed sales reports, this cutting-edge technology streamlines processes and enhances decision-making capabilities. By automating routine tasks and providing actionable data, PLC facilitates informed strategic planning, enabling retailers to maximize profitability and streamline operations with ease.

Further, our re-use count and environmental reporting represents a significant step towards our commitment to sustainability. The software is designed to capture and analyze critical data points, enabling retailers to gain deeper insights into the environmental impact of their operations. Key features include:

• Reuse Rate Tracking: By monitoring the number of uses each reusable asset receives, retailers can assess the effectiveness of their sustainability initiatives and identify opportunities for improvement.
• Loss Reporting by Client or Location: This feature provides retailers with visibility into areas of potential waste or inefficiency, empowering them to take proactive measures to mitigate losses and optimize resource utilization.
• Average Length of Reuse Cycle: Understanding the duration of reuse cycles allows retailers to identify trends and patterns, facilitating more informed decision-making and resource allocation.
• Overview of Environmental Social Impact: By quantifying the environmental and social impact of their operations, retailers can demonstrate their commitment to sustainability and accountability to stakeholders.

Finally, our smart refill containers, equipped with RFID and barcodes for tracking, represent a tangible commitment to innovation and sustainability. These containers come in various sizes to accommodate different products and usage scenarios, providing retailers with a flexible and customizable solution for their refill needs especially in low-income economies globally and not just in Kenya. By leveraging RFID and barcodes, retailers can accurately monitor inventory levels, track usage patterns, and streamline the refill process, further enhancing operational efficiency and reducing waste.

EcoTrace presents a transformative opportunity for consumers in low-income households and communities, offering them the ability to utilize refillable containers for essential household commodities like cooking oil, washing powder, sugar, and flour. By embracing this innovative approach, consumers can alleviate the financial burden associated with packaging costs. Moreover, it empowers retailers to streamline operations by reducing the man-hours typically spent serving customers, particularly in areas where queues are prevalent. This shift towards refillable containers not only promotes economic resilience among communities by fostering increased savings but also facilitates access to products that may not typically be available in smaller quantities. With EcoTrace's capability to dispense even minute amounts, such as Ksh. 1, previously inaccessible options become viable for consumers, enhancing their purchasing power and flexibility.

Furthermore, the adoption of EcoTrace holds promise for addressing environmental challenges, notably the proliferation of plastic containers utilized for packaging high-demand household goods in regions like Kenya and other low and middle-income countries. By curbing reliance on single-use plastics, EcoTrace contributes to a reduction in pollution levels, thereby bolstering efforts to combat climate change. The ripple effects of EcoTrace extend beyond mere economic and environmental considerations. By promoting sustainable consumption practices and mitigating the ecological footprint associated with packaging waste, it fosters a culture of responsible stewardship. This, in turn, cultivates a collective consciousness regarding the interconnectedness of individual actions and broader environmental sustainability goals.

In essence, EcoTrace represents a paradigm shift towards a more equitable, sustainable, and environmentally conscious approach to consumption. Through its multifaceted benefits, it not only empowers consumers and retailers but also embodies a tangible step towards fostering a greener, more resilient future for communities worldwide.

• Reduced product cost
• Reduced retail man-hours
• Flexibility of purchases

• EcoTrace: Consumers use refillable containers and retailers use EcoTrace

• Increased purchasing power
• Access to basic goods for all
• Reduction in pollution

The product focuses on three primary impacts: enhancing the purchasing power of low-income households, ensuring access to essential goods within these communities, and reducing pollution on a broader scale. After conducting a product trial in Kenya's Aberdares region, we successfully engaged approximately 3,000 residents and over 200 retailers. Our automated system meticulously records customer purchases via their Mpesa mobile numbers, allowing us to retrospectively analyze consumption patterns and estimate the reduction in plastic waste compared to conventional packaging. Additionally, by monitoring retailer adoption of EcoTrace refill machines, we can gauge the product's acceptance rate among Kenya's 400,000 retailers, particularly within low and middle-income areas.

Based on our findings, we anticipate an adoption rate exceeding 80% among retailers nationwide, signaling a significant shift towards sustainable consumption practices. This suggests promising potential for EcoTrace to make substantial inroads in not only Kenya but also in similar economic contexts globally.

Eco Trace leverages on the Internet of Things (IoT) technology. This way, Eco Trace enables comprehensive tracking of products from their initial distribution to their sale in kiosks, providing retailers with invaluable real-time insights into inventory levels and facilitating prompt restocking to bolster supply chain resilience. This real-time visibility not only optimizes inventory management but also enhances operational efficiency, ensuring that retailers can meet consumer demand with precision and agility.

Using Programmable Logic Control (PLC), we will empower retailers with unparalleled control over key aspects of their operations. From price setting and calibration to the generation of detailed sales reports, this cutting-edge technology streamlines processes and enhances decision-making capabilities. By automating routine tasks and providing actionable data, PLC facilitates informed strategic planning, enabling retailers to maximize profitability and streamline operations with ease.

Further, our re-use count and environmental reporting represents a significant step towards our commitment to sustainability. The software is designed to capture and analyze critical data points, enabling retailers to gain deeper insights into the environmental impact of their operations. Key features include:

• Reuse Rate Tracking: By monitoring the number of uses each reusable asset receives, retailers can assess the effectiveness of their sustainability initiatives and identify opportunities for improvement.
• Loss Reporting by Client or Location: This feature provides retailers with visibility into areas of potential waste or inefficiency, empowering them to take proactive measures to mitigate losses and optimize resource utilization.
• Average Length of Reuse Cycle: Understanding the duration of reuse cycles allows retailers to identify trends and patterns, facilitating more informed decision-making and resource allocation.
• Overview of Environmental Social Impact: By quantifying the environmental and social impact of their operations, retailers can demonstrate their commitment to sustainability and accountability to stakeholders.

Finally, our smart refill containers, equipped with RFID and barcodes for tracking, represent a tangible commitment to innovation and sustainability. These containers come in various sizes to accommodate different products and usage scenarios, providing retailers with a flexible and customizable solution for their refill needs especially in low-income economies globally and not just in Kenya. By leveraging RFID and barcodes, retailers can accurately monitor inventory levels, track usage patterns, and streamline the refill process, further enhancing operational efficiency and reducing waste.

The product team consists of two individuals. Mr. Donatus Njoroge is responsible for designing the EcoTrace system and overseeing its operation. Dr. Henry Yatich specializes in market testing and penetration strategies, which involves community engagement and retailer outreach to foster adoption. 

Collaboratively, we conduct data collection, analysis, and report generation to evaluate the product's performance and identify areas for enhancement. Additionally, we oversee the fabrication of the prototype to ensure its functionality and efficiency.

1 Year: Ecotrace Company, with extensive tech industry experience, investigated why companies weren't recycling packaging in 2023. They found professionals in multinational organizations striving to meet consumer demands and tackle climate change but facing significant obstacles. These challenges inspired Ecotrace's transformational mission to drive sustainability.

Dr. Henry Yatich is member of Diversity and Inclusivity with the Association to Advance Collegiate Schools of Business (AACSB). The current team which is still at prototyping envisages an increased workforce as the product gains traction of acceptability in the Kenya’s retail market.

We are committed to fostering diversity, equity, and inclusion (DEI) across all aspects of our operations. We recognize that diversity not only enriches our perspectives but also enhances our ability to innovate and address complex challenges effectively. This has been ensured during the piloting test in Aberdares, Kenya.

Our goals for becoming more diverse, equitable, and inclusive are deeply embedded in our organizational ethos. We believe that true equity means providing equal access to opportunities and advancement for all team members, regardless of their background or identity. We are dedicated to creating an environment where everyone feels valued, respected, and empowered to contribute their unique talents and perspectives.

Key Partnerships:

• IoT technology providers for hardware and software solutions.
• Distribution partner for reaching retailers and kiosks.
• Retailers and kiosk owners for implementation and adoption.
• Our university data analytics centre for real-time insights and reporting.

Key Activities:

• Development and maintenance of IoT technology infrastructure.
• Integration with retailers' existing systems.
• Training and support for retailers and kiosk owners.
• Continuous sensitization among consumers and improvement and updates based on feedback and data analysis.

Key Resources:

• IoT hardware and software development team/ Data analytics team.
• Sales team.
• Customer support team.
• Partnerships with technology providers and distribution networks (Safaricom-Mpesa Platform)

Value Proposition:

• Real-time tracking of products from distribution to sale.
• Comprehensive insights into inventory levels.
• Prompt restocking to bolster supply chain resilience.
• Optimization of inventory management and operational efficiency.
• Precision and flexibility in meeting consumer demand.

 Customer Segments:

• Retailers and kiosk owners.
• Businesses seeking to optimize their inventory management.

Customer Relationships:

• Personalized support and training for implementation.
• Ongoing communication and assistance for troubleshooting.
• Feedback mechanisms for continuous improvement.

Channels:

• Direct sales and marketing efforts.
• Online platforms and websites.
• Industry events and trade shows.

Revenue Streams:

• Sale of EcoTrace hardware and software solutions.
• Subscription-based model for access to real-time insights and analytics.
• Consulting and implementation services.
• Licensing fees for proprietary technology.

Cost Structure:

• Research and development costs for technology development.
• Sales expenses.
• Operational costs for customer support and maintenance.
• Partnerships and distribution fees.
• Infrastructure and technology maintenance costs.

We have already raised funds for the prototyping phase and are actively seeking collaborators (banks, SMEs and private investors) to invest in our venture. It is on this premise, that we are applying for MIT Solve to enable us make more pitches to potential investors and possibly leverage on MIT Solve network as well.

To ensure sustainability, our sales of EcoTrace systems will enable the production of more systems. We are still discussing on possible ways of studying the application of AI integration with our system, to ensure lower operating costs among retailers as part of our initiative to leverage on technology (AI).