About the project
SESA is a collaborative project between the European Union and nine African countries (Kenya, Ghana, South Africa, Malawi, Morocco, Namibia, Tanzania, Rwanda, and Nigeria) that aims to provide energy access technologies and business models that are easily replicable and generate local opportunities for economic development and social cohesion in Africa.
In the case of Ghana, Nastech Power Solutions utilises a circular economy approach to collect, recycle, reuse and repurpose electronic waste and waste batteries into second-life energy storage solutions for providing electrification to marginalised communities.
In the case of Malawi, Smart Energy Enterprise (SEE) facilitates the adoption of solar-powered irrigation systems among Malawian smallholder farmers through customised, small-scale solar pump solutions available on loan.
Description of success
Through the SESA living lab project, the three communities in Ghana with over 2000 residents now have access to renewable energy intervention serving their electrification needs, which has also brought about socioeconomic development in the communities. With the intervention of the SESA project and the support received, Nastech Power Solutions were able to apply and receive an EPA permit for e-waste recycling and repurposing from the environmental protection authority, and certify four of the main Nastech products. The product efficiency and performance has improved by over 45%, which has made it possible for Nastech products to compete with other major brands in the market. Due to the improved performance of the company over the project period it has been able to successfully secure partnership with GIZ under the IDPP project to expand e-waste recycling in Ghana.
SESA has enabled SEE to develop and dispatch Kanyumba solar irrigation systems, which have proved successful on the market by addressing the pressing needs of smallholder farmers. During the period of the project, SEE has also developed a digital loan and pump management system to ensure proper operation of the pump. SESA has further empowered SEE to partner with banks to provide irrigation loans to low-income smallholder farmers to increase accessibility and affordability of solar pumps, while also increasing SEE’s cash flow. Suffice to say, the demand for solar pumps in times of climate change and prolonged dry spells in Malawi is considerable.
Highlights
In Ghana:
Three micro-grids were installed and are operational for three communities.
A total of 46 homes now have access to electricity, through the living lab project.
250 tons of waste batteries have been recycled.
50 direct and indirect jobs have been created.
Product standardisation and certification has been completed with the Ghana Standards authority, and all four of the main products of Nastech are now certified.
An EPA permit for battery recycling and repurposing has been completed and secured.
156 people have been trained in solar installation skills as part of the SESA intervention.
A new product, the Kanyumba solar irrigation system has been successfully developed, which is a large solar pump mobile housing structure that can be moved back to the farm during the rainy season.
In Malawi:
In Northern Malawi, 25 solar pumps have been installed for low-income smallholder farmers, contributing to increasing yields and income, and thereby improving food security for these families.
SEE partners banks to provide irrigation loans to low-income smallholder farmers.
SEE is becoming recognised by both government and non-governmental organisations.
Outputs
The results of the SESA project have been outlined and discussed in a number of articles, including the following:
URBAN SHIFT, “Implementing Sustainable Energy Solutions: Takeaways from our exchange with the SESA Project in Ghana”, 24 Oct 2023.
Clean Technica, “4 Companies Selected For The Inaugural SESA Call For Entrepreneurs”
Empowering People Network, “Smart Energy Enterprise (SEE)”, 2017.
Flame Tree Initiative, “Gift Mwangairo, Smart Energy Enterprise”, 25 March 2020.
Impact
The three mini grids deployed by Nastech serve the electrification needs of over 2,000 residents. Economic activities have sprung up in these three communities, which are bringing about socio economic development. Moreover, electronic waste reduction has been achieved through a proactive circular economy approach, with the successful recycling of over 200 tonnes, thereby reducing CO₂ by over 20 tonnes.
The implementation of the micro-grid solutions has helped position Nastech as a company that can create partnerships with the major government and international organisations. The training programme and mentoring received from the SESA team has greatly impacted the organisations' structure and performance.
In Malawi, 10 trainings on commercial agriculture were conducted for smallholder farmers, reaching 36 smallholder farmers and benefiting 248 household members.
Lessons
To remain relevant on the market: SMEs or projects must be excessively innovative to develop products or services needed by the users, ensuring product- market-fit.
Projects must greatly embrace and take advantage of the digital aspects to grow.
Diversification of revenue streams is important to make sure that in times of low demand, there is enough cash flow from alternative income.
Referral system that was introduced has proven more effective than other marketing campaigns and will be rolled out even further across Malawi.
Other information
Currently the IDPP project partnership between Nastech Power Solutions, the ministry of environment, GIZ, EPA and the government of Ghana has a target to expand and scale their operations.
SEE aims to broaden its geographical presence within Malawi and beyond its borders by implementing a digitised business model. Recognising the significant financial investment associated with a lease-to-own business model, SEE is actively partnering with financial institutions to offer irrigation loans to low-income smallholder farmers, which feature customised flexible and reasonable repayment terms according to need. Additionally, SEE plans to assume a pivotal role as the primary off-taker and processor of rice cultivated by smallholder farmers, thereby ensuring a reliable market outlet for their produce, while increasing revenue flows for the business.
Figure 1: Kanyumba solar powered irrigation system. ©SESA 2024
Figure 2: Digital loan and pump management system. © SESA 2024
