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Business News of Wednesday, 5 September 2007

Source: GNA

World Bank lights Africa

Accra, Sept. 05, GNA - The World Bank and International Financial Corporation (IFC) on Wednesday jointly launched an initiative to provide modern lighting to about 250 million people in Sub-Saharan Africa who have no access to electricity.

The project dubbed: 'Lighting Africa' was aimed at developing market conditions for the supply and distribution of new non-fossil fuel lighting products such as fluorescent light bulbs and light emitting diodes in both the rural and urban areas of Africa that are not connected to electricity grid.

It is also being sponsored by Global Environmental Facility and other bilateral donors such as Norway, United Kingdom and Sweden. The first phase would include launch of a competition for the design and delivery of innovative, low-cost, high-quality non-fossil lighting products and market research in Kenya, Ghana, Tanzania and Zambia to better understand consumer demand, behaviour and preferences.

Mr Vijay Iyer, World Bank Energy Sector Manager for Africa said the project would directly contribute to the Millennium Development Goals. "Modern light will mean improved air quality and safety for millions of people in Africa. It will mean longer reading hours for students and longer business hours for small shops".

He said the project was a cornerstone of the Bank's Clean Energy and Development Investment Framework and the Africa Energy Access Scale-up Plan and added that already about 350 companies had expressed interest in the initiative.

The "energy poor" in Africa spent about 17 billion dollars a year on fuel-based lighting sources such as kerosene lamps that were costly, inefficient and provide poor quality light with its associated fire hazards.

Mr Iyer said a report submitted to the Bank indicated that lighting was often the most expensive item among energy users, accounting for 10 to 15 per cent of the total household income in Africa. "There is a potentially huge market for modern lighting products that are safe and reliable, that provide higher quality light and cost competitive".

Mr Lars Thunell, IFC Executive President said in partnership with the private sector, IFC would help to develop sustainable business models to supply good quality lighting to the poorest of the poor in Africa.

"Our goal is to give families and small business owners clean, modern and affordable alternatives to fossil fuel lamps," he added. A research on the project would look at local supply, marketing and distribution channels with initial results expected in 2008 and inauguration of business-to-business Web portal where manufacturers, distributors and marketers from all over the world create partnerships. Mr Vincent Loh, a representative of Kenya Renewable Energy Association said the development market place competition would provide a unique opportunity for local African Companies to participate in the development of lighting products and services tailored to local needs and conditions.

The competition dubbed, "Innovations in off-grids Lighting Products and Services for Africa" would reward project ideas that address the various off-grid lighting needs of Sub-Saharan Africa and improve policy environment".

It is open to broad range of innovators including private businesses, non-governmental organizations, universities, government entities, individuals and 10 to 20 winners were expected to receive grant funding up 200,000 dollars.

Applicants were expected to submit their proposal in English through on-line application form available at www.lightingafrica.org by October 31. 05 Sept. 07