The Wakawaka Solar Lamp BOP Model

Corporate Sponsors, NGOs, Entrepreneurs and Consumers Together, Become The Economic Model For Nations!
Here are the facts as we understand them today; there are over 1.5 billion people around the world that live off of the grid. Hundreds of millions more that have, at best, intermittent access to electricity. In real terms this means children cant study when the sun goes down, entrepreneurs cant continue to build their crafts, charge their phones and generally do business when the sun sets. Currently, Africans spend in excess of 37 BILLION dollars a year on deadly, dangerous Kerosene to light their homes and cook. According to a World Bank study, when children have access to solar lighting, within two years they went from a mere 57% passing to 100%. The problem has been, how do you deliver quality personal solar lighting to those earning on average $2/day, fund entrepreneurs, distribution channels and education efforts. The reality is, it is not about cost but making the solution affordable. The solution will not come from aid as we have seen it in the past. Cling if you will, to the belief that international aid is the key to bringing lasting change to the poorest countries in the world, but your belief wont make it true. Bilateral and multilateral aid or Dead Aid as Dambisa Moyo calls it in her book by the same name has actually stagnated and even made

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the economic situation worse in Africa so that today, after decades of aid, many African countries are poorer than they ever were. Improving any countrys economy is a complex process, but what has been proven over the past 50 years is that massive bilateral and multilateral aid is not working. Citizens of poor countries want the opportunity to participate in the growth of their own economy. People need less charity and more opportunity. Let me be clear, in times of tragedy, humanitarian aid has the potential to be very effective. A Tsunami, Earthquake or man made disaster where people need immediate access to food, clothing and shelter are examples where humanitarian aid is well suited. Bilateral and multilateral aid provided by the governments of wealthy countries has been proven as devastating. These funds often come in the form of loans or grants designed to be used to build infrastructure and economic development. In recent years celebrities, and good meaning individuals with minimal understanding of the implications of their actions, raise significant dollars to help those in need. Take for example the small mosquito net maker that employs 10 people, each of which supports 10 others at home. Unfortunately, they cant make enough nets to overcome the malaria-carrying mosquito. A celebrity hears of this and speaks out attracting enough capital to deliver 100,000 mosquito nets to Africa. On the surface the aid seems to have solved the problem, more mosquito nets. A closer look provides some insight into the negative effects of improperly planned aid. The market price of nets drops, the African Mosquito net manufacturer goes out of business and in the coming years the supplied nets need replacement with no manufacturer to supply them. The aid has caused economic collapse in a small, but vital niche market. Off Grid Solutions U.S., the maker of the WakaWaka Solar Lamp, has developed a new model that builds on the self interests of all participating parties. We have developed a multipronged model that involves a

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broad collaboration between corporate partners in developing countries, international NGOs, entrepreneurs in developing countries, and consumers in both low-income and wealthy economies. This wealth-spreading program obtains initial funding from the multinational companies doing business in economically challenged nations. Corporate partners working together provide an initial $500,000 in funding, used to market the WakaWaka Solar Lamps to western nations who purchase the lamp at a fair price. Each sale triggers a $10 gift to the WakaWaka Foundation. These funds are used to fund a micro loan fund overseen by Kiva.org or similar entity. People living on $2 a day can now afford the most efficient personal solar lamp/phone charging unit on the planet, while eliminating the ravages of Kerosene used for lighting. On the ground these micro funds support non-profits that educate women about how to build a business in the energy industry creating jobs and economic empowerment. These funds are readily available to consumers that can buy lights to ensure their children can study at night improving education. Villages with lights and associated charging capabilities can charge their mobile phones at home improving communications enabling farmers and craftsman to get the best price for their wares. One year of a successful sales campaign in the west can fund hundreds of thousands of households over the life of the program. Off Grid Solutions entered the U.S. market in August, 2012 and has proven their ability to sell a quality product in the U.S. at a fair price. Amazon.com and Wal-Mart along with the grass roots support from socially conscious sites like Roozt.com and Daily Grommet has shown that Americans very much appreciate the innovative product and the associated cause and solution. Sales in the first three months have exceeded expectation. The goal for 2013 is to sell at minimum 50K 100,000 WakaWaka Solar lamps in 2013, thereby generating $500,000 to $1,000,000 in funds for the Foundation. Our goal is not to deliver cheap energy solutions, rather deliver the very best, most efficient technology available, affordably. Similar to Western nations affordability means the ability to finance the purchase or business venture. Most Americans would not be capable of paying for a car outright, and so many families look to vehicle financing as an affordable way to acquire their purchase. Similarly with WakaWakas approach which makes the best solar light/charging unit on the market available to some of the poorest people in the world through micro-funding models.

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In essence, this economic model will go a long way to help grow the middle class in some of the poorest countries in the world. The benefit of a wealthier middle class is their drive to demand more from their governments. Through political will and by exercising their economic power, the middle class within emerging economies can help drive the evolution of political and socioeconomic systems from the grassroots, which is extremely effective for driving out corruption and attitudes of dependency. Once successfully implemented in one country the potential for scaling is infinite. Entrepreneurs trained to sell products direct to consumers will be looking for new products to fill the needs and wants of a consumer that has dramatically improved their productivity and reduced their monthly living costs. This model is well suited to enable governments/corporations to invest bilateral and multilateral aid in the marketing of innovative new technologies, fashion designers, mobile apps etc. targeted toward the western consumer. New jobs are delivered to the U.S., start-ups are funded and profits shared in the form of micro financing with participating countries where the consumer at the Base of the Pyramid gains access to the finest products at affordable prices. We must strive to implement new programs that inspire the human spirit and motivate all to create a new reality. We are actively seeking the support of companies, individuals and NGO partners around the world to make this sustainable program a reality. Please feel free to contact me directly if you would like to discuss in greater detail. Eric M. Clare Managing Partner, Digital Concepts 2.0 eric@wakawakalight.com 510-621-7621

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