GVEP International released a study that takes a closer look into Rwanda’s off-grid lighting market complete with insight as to steps that can be taken to ensure its growth. The data is compiled from data secured from major companies operating in the East African country that are currently selling off-grid lighting solutions including solar lanterns and PV systems.
Rwanda faces obstacles in the path to supplying energy to its nationals; approximately 85% of the population remains without access to the electricity grid. Its high population density, reformed and business-friendly regulatory environment, and economic and political stability have attracted a number of companies from the region to establish a presence in Kigali.
The assessment is aimed to provide further understanding into the structure of the solar market, product suppliers and dealers in rural areas, promotional strategies currently employed by companies and the challenges encountered as businesses seek to increase sales. Annual turnovers for solar products range between $15,000 and $2 million with institutional installations and government tenders contributing the bulk of revenue for these companies. The group said: “Approximately 80% of sales are achieved through pro-active marketing and distribution by entrepreneurs and agents. Companies actively using such strategies achieve 75% higher turnover on average on products below $100 compared to companies that do not actively market their products, showing the importance of marketing in reaching customers.”
GVEP is assisting the World Bank and the Energy Water and Sanitation Authority (EWSA) in a project which will provide small grants to local businesses to support the development of retail networks for off-grid lighting products in rural areas and to scale-up their marketing and awareness campaigns.
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