WUNRN
Women News Network
Website Includes Video.
MALAWI - SOLAR MICRO-FINANCE BUILDS
BUSINESS FOR WOMEN
Jessica Buchleitner – Women News Network – WNN
Being a woman in one of the poorest countries in
the world carries with it many burdens. In addition to struggling to provide
for one’s family, limited access to the basic infrastructure, such as the use
of electricity and water, can make necessary daily tasks for women much more
limited and compromised.
Because of this, numerous women in
“Electric power cuts are now a big problem in
Electricity in
Off The Grid
The state owned power company, Electricity Supply
Corporation of Malawi, LTD (ESCOM) is the sole supplier in
Nearly 95% of
Current power generation is not meeting demand and
to compensate, rolling blackouts are scheduled routinely. Rolling blackouts
occur when electricity is stopped for periods of time over a geographic
region. They are usually in response to a situation where the demand for
electricity exceeds the power supply capability of the network.
Much of the region is susceptible to extended
periods of drought which can greatly limit hydro-power use, especially when
water levels drop on the
Rolling blackouts are often normal daily events in
many developing countries such as
Dangers of darkness
For a woman in
“Kerosene and candle light produce toxic smoke,
inferior luminescence and present burning risk. Improved lighting is critical
to reducing toxins, fire danger and eye strain,” said the World Bank in 2008.
Kerosene is a highly flammable dangerous fossil
fuel that emits vapors. If kerosene is accidentally ingested, the vapors can
cause coughing, dizziness, headaches, sore throat, unconsciousness and
respiratory problems.
In
“The kerosene lamp is a danger to
Enter Solar
In and around
One of the MicroLoan Foundation’s new 2011
initiatives in Africa has been its solar enterprise work which is being piloted
in
Products such as a small 1.5w solar panel, an LED
light, a mobile phone battery charger and battery pack which stores the solar
energy are part of the sales for women entrepreneurs.
These products are specifically designed for rural
settings, and the women are being trained and mentored in areas such as
marketing to and educating customers as to how the panel’s work; repairing
broken products; charging mobile batteries and taking care of stock management.
“The solar business has been generating good
profits for me,” says sixty-year-old Veronica who comes from Salima, a small
rural township in central
“Being able to integrate the solar enterprise
program into MicroLoan’s work in
Veronica runs a teashop that was failing to
generate enough income to support her family before she began her solar
business. “I had to move my tearoom because the rent was too expensive here,”
she said. Now Veronica is making extensive additional income by renting out
fully charged LED lamps every evening and charging people’s mobile phones using
solar powered batteries.
With only ten solar panels and equipment packs the
equipment to set up a business will pay for itself entirely within 2.5 months.
After this Veronica can use her inventory to generate pure profits as long as
she can. In her spare time, Veronica also teaches local women how to cook. She
does this predominantly on the weekends when she can bring her attention away
from the teashop and her solar sales.
“I have ten solar panels and these charge LED
lamps that people use in their houses in the evenings – I rent them by the day.
I’ve had lots and lots of orders from people and the local school wants to buy
my whole stock of solar panels then next time I get some more,” said Veronica.
MicroLoan lending process
With the “feminization of poverty”, lending to
women has become a common practice in the Microlending circuit, as 75% of
microcredit recipients worldwide are women. The MicroLoan Foundation provides
loans to groups that include 10-18 women.
Each group has its business ideas appraised and
receives eight training sessions covering topics such as book keeping and cash
flow. All group members are required to save money as a source of security.
Each woman receives her loan as a check and opens an account at a designated bank.
Individuals in the group then establish small
commercial ventures. Groups meet with a loan officer every two weeks to review
their progress. Repayments against loans are made routinely by each group
member. When business is booming, it is the responsibility of the loan officer
to ensure things get back on track.
Loans typically last for four months. Each group
member is eligible to receive up to four loans after which their business
should be commercially viable. Loans are small – on average £67 ($105 USD) per
individual and an interest of 20% is charged in keeping with the local economy.
For individual’s desiring to develop a business further they may receive a
bridging loan of £140-£350 ($219-$547 USD) or access a separate MicroVentures
service.
The loaning program operates on a continual
gifting cycle: when the women repay their microloans, the money is then given
to another woman. This process repeats itself.
MicroLoan has now set up a total of nine women as
solar entrepreneurs in and around the Kasungu area. The women have been
selected on the basis of their successful business backgrounds and their
ability to sell new products.
“MicroLoan Foundation is passionate about the
change that solar energy can bring to the lives of the poor. With a large client
base of women, along with a light yet efficient commercial touch, we are
uniquely placed to roll this out,” said Peter Ryan, MicroLoan’s Founder
and CEO.
The women generally attend a two and a half day
training workshop in Kasungu where they learn how their panels work, how to
repair faulty units, how to charge clients mobile batteries, how to find
clients and how to keep accurate record of their sales.
“The impact it has brought to our clients, their
families and their communities has been fantastic. There have been so many
positive benefits including children now being able to study in the evening,
women generating a new income and being able to travel much less to conduct
their business by relying on a now fully charged mobile phone,” said Mele.