Developing affordable solar home systems to rural consumers.
M-KOPA is the market leader in developing and selling ‘solar home systems’ (SHSs) (i.e. off-grid electricity) to rural consumers in East Africa on favorable credit terms. Once the SHS has been paid for it can be used as collateral for further credit sales from M-KOPA, for example water tanks, fuel-efficient cook stoves and other productive assets. M-KOPA started in Kenya and has since expanded into Uganda and Tanzania.
M-KOPA recently expanded into Tanzania and already have a reasonably wide distribution network offering similar products and services as in Kenya and Uganda. The FRP funding will primarily be used to enable M-KOPA to increase the scale of their distribution network in rural Tanzania beyond current plans and roll-out several add-on credit products, specifically agricultural inputs and services which are currently not offered elsewhere.
This project will test the delivery of agricultural inputs as an add-on product for M-KOPA’s existing customers. This has strong potential development impact for bottom of the pyramid users, many of whom are caught in a vicious cycle of lack of finance to buy inputs and therefore low yields and low income. If successful, this model has the potential to be replicated by other PAYGO solar home system providers.