For the last three years the founders of Stima piloted ways to bring pay-per-use solar

energy to the poorest communities in Kenya. They experienced first hand how power changes lives. A girl rose to the top of her class reading by LED light. A brick layer doubled his business by keeping his phone powered on. A user introduced the idea of group guarantee, which when implemented in trials, tripled collection rates within weeks. Another pilot user recruited 70 users from neighboring home villages and generated five times the average daily income from pilot commissions. These and other Base-of-Pyramid user innovations demonstrated a world of possibilities starting with the way to bring modern power to remote villages, while saving money and generating revenue for all parties involved. Stima was founded to profitably address pervasive demand for affordable energy at the Base-of-Pyramid. Stima means "energy" in Swahili and "esteem" (where we get the word) in Latin languages, or, in other words, "power and empowerment". We bring power to people and empower them to participate in the operation of our service, the recruitment of their fellow community members, and the formation of groups to co-guarantee payments. At the Base-of-Pyramid people are held back by expensive energy and lack of financing: energy in rural villages costs 15 times more per unit than what you and I pay. The further kerosene travels from an urban center, the higher the cost. Efficient energy simply has not been accessible to the rural village. Even a $6 solar torch, which can reduce kerosene usage and pay for itself in a little over two months, is too much to pay for out-of-pocket. The reason has to do with the second problem, the economics of poverty, which dictates that cash on hand is more valuable than spent, even on a solar product that can save in the long run. That is why billions of poor people still buy expensive kerosene daily. The solution is to offer modern energy as a service; paid for in small amounts to fit rural spending habits. There are 200 million rural families living in India and Africa at the 'Bottom-of-Pyramid' who could save money with Stima, enjoy brighter lighting and better phone access. That's over a Billion people!

Problem | Opportunity | Solution
Problem: 10% of the world's population, or 1/3rd of the base of pyramid, is too poor to buy even the lowest cost solar product, yet spends 15 times more on inefficient alternatives simply because they fit cash-on-hand. Opportunity: For families living off $1 to $4 a day, energy approaches 30% of household expenditures and families develop two behaviors in response that make Stima's approach a natural and symbiotic fit: energy is managed daily and families band together with community members to smooth cash flow so they can cover daily expenses in the absence of consistent daily income. As the saying goes, individually they are bust, but together they are strong. This target segment has proven itself to embrace the methodologies that Stima uses. In fact, Stima adopted the methodologies from customer feedback. In pilots leading up to Stima, the founders also discovered that those earning below $1 a day burn firewood and don't budget daily for energy and at incomes above $5 a day, energy drops to 10% of income and families rely less on communities to smooth cash flow. These users drop out of group meetings over time as they not take recruitment of fellow customers as seriously. Solution: Stima's solution is 4-fold;

1. Low-cost portable solar chargers and lights with Stima's patent-pending payment control technology inside 2. Pricing model that fits cash-on hand 3. Group guarantee methods honed over 3 years in Kenyan pilots to ensure payment 4. Franchised distribution; leveraging local entrepreneurs to reach deep into the village

Stima distributes chargers under a franchise model. the Money Keys also expire ensuring controls throughout the channel. This is the case across much of the developing world.   . Have an added motivation for users to follow the process rules. Just like the controlled chargers. Stima solidarity groups become stronger and leverage their combined finances to invest in other opportunities. These "Agents" manage upwards of a hundred users with a "Money Key" that ensures payment collection or service expires. cash is power. rather to rent the chargers for local people to charge their cells. Distribution: The chargers are small and portable. which requires users to co-guarantee payments. to cost-effectively reach deep into rural villages. form a group and agree to co-guarantee full payment. where energy to charge a cell phone often costs more than making a call. People pay for the service.. leveraging rural entrepreneurs to oversee recruitment and payments by groups. BABABABABABABABABABA Stima works in rural Kenya.By selling a product to people in the BoP you are taking away their liquidity. The reason:". leveraging rural entrepreneurs to recruit and manage groups of users who co-guarantee weekly payments. and well-connected local entrepreneurs to ensure reliable collection. no one is reactivated. forcing the group of users to self-enforce payments. measurable impact. In my opinion one of the keys to their success is the fact that they use a group payment scheme. Stima combines affordable pay-per-use energy with control technology. a small USB-like device which activates a specific set of chargers.” Hoes does Stima's model work? Stima distributes chargers under a franchise model. they need to have cash on hand. interested users recruit 10-20 additional users whom they trust. so a locla enterpreneur can carry 50 into a remote village on the back of a bicycle. To ensure collection. Lessons from Stima's work model: Don’t sell. common in our target segment. For Stima this is the timeout of chargers if users don’t bring them in each week and pay for them to be reactivated by the key. as a result. whereby each week the group is responsible for paying the lump sum and thus can support each other to make sure the payment is made. With Stima. viral growth. not to own the equipment. These "Agents" manage up to several hundred users with a "Money Key" that ensures payment collection or service expires. Stima decided not to sell.Stima embeds a patent-pending control chip into a portable solar charger so it shuts off every week unless payment is received over a mobile phone. This allows Stima to turn any solar charger into an affordable pay-peruse service that fits cash-on-hand and eliminate all upfront fees that create barriers to adoption. Stima recognizes value and technology alone are not enough to operate a sustainable business when serving a target segment that has unreliable income. most cell phone users will turn off their phones between calls to save power. Stima leverages proven group financing practices. Portability and simplicity are important. and fair profits for STIMA and channel alike. If one person does not pay. proven methodology. The “Money Key”. and in these communities. is a simple yet effective way to regulate payment and in-person interaction between Agents and users. targeted income groups.. an Agent carries 50 chargers into a remote village on the back of a bicycle and firsttime users figure out how to charge phones and turn on lights within the first sunny day. Over time. Finally..

Konrad App joins me today to discuss how Stima Systems has provided rural Kenyans at the base of the pyramid. and nairobi and will send money back through the phone. because most people can not keep their cell phones on. Synopsis How to empower a community to grow education and bolster an economy with micro-leased portable solar chargers. sometimes 5 people share a cell phone and have their own sim card. and even worse on the wallet                stima provides a way for these people to get modern tech without having to buy it @ 2. people who live on 1 -2. with an opportunity to thrive. 80% of people who live under 10 dollars/ day portable solar chargers become micro leasing chargers with a special security chip lease them to people who are at the bottom of the pyramid. when they try to call someone else… the recipient of the call wont receive it because they will have their phone off. no delivery to the last mile. on their hut.   Work in groups. their lungs. no marketing.10 Elise Acheson – Why Kenya? James Kimisoi.00 the past way of charging the cell phones it costs more money to have the phone on than it is to make the call cell phones vs land lines. sometimes have more than one sim card @ 5. 7-8 years old. they will keep it on for set times children are often in the urban areas of mumbasa. head of justice and peace conflict created needs for current energy infrastructure startup cost is too high to justify buying solar chargers themselves much potential for solar development in kenya about 70% of the country has cell phones people will write their cell no. Interview Notes       base of the pyramid. which isn‟t good for their eyes. people who live on less than 10 dollars per day. which means costs can be low and confusion minimal – no sales. Keep it as simple as possible. many people have jobs and need the cell phones for that how to build community with the solar chargers . because they‟re so proud of it the cell phones are old.50 dollars per day why franchise? these people spend 30% of their income on energy per day most energy is kerosene for light. Have responsible and reliable agents who are trusted in the communities involved with the franchise. note: not many land lines prevalent     once the people have power to their phones. environment.

daughters often go out to collect wood for lighting  when you have an income that is closer to $5 per day. by the end of the meeting. then energy is not a 30% of your income. girls walk out with empty jugs on their head. they do everything they can to light their lamp for an hour per night to show their still in business    the clients love the cables! to show the electricity empowering girls‟ education they are spending 50x more for the same activity. little over a million users primarily in Kenya Goal is to move towards in India womans groups are very popular in Kenya lots of blunders. water is a big deal! in the mornings. their main technology is the pay per use model.50 per day. in terms of energy. the only product in their hut will be a cell phone   @ 14.15 women‟s group example in the beginning of the group meeting.00 the story of idea inception to where it is today initial 1000 solar chargers were donated some difficulties faced: if you make $1 – 2. its not possible to buy products. agriculture. but that is the best part! and the way to learn @19:30 -the need for other social enterprises to pop up. @24. or a hurricane lamp which is much more efficient   keeping capital is the most important part at a certain income level at the base of the pyramid. partnerships are a huge aspect in the african world.05… stumped… cell phones and lighting lighting is more important than their cell phone charging lights have a status symbol in kenya.        cookstoves are needed as well. water and more… on an income drastically lower  Kenya‟s 42 tribes are very helpful to empowering people and bringing education up . if a family runs out of money. and come back with with water in the afternoon. there are already practices in place where you would scrape the can to get the last kerosene out of it.    @8. people would be gathered ready to read and use the light to its most efficient minute.40 – whats next for Stima time based chip in 5 years projection. the only way to make a successful enterprise. they all put in 20% of their income into the box. when you lit the lamp. you‟re able to buy kerosene in bulk. they have to…          @15.

That‟s over a Billion peop le! . which dictates that cash on hand is more valuable than spent. the recruitment of their fellow community members. and the formation of groups to co-guarantee payments. That is why billions of poor people still buy expensive kerosene daily. There are 200 million rural families living in India and Africa at the „Bottom -of-Pyramid‟ who could save money with Stima. Even a $6 solar torch. is too much to pay for out-of-pocket. They experienced first hand how power changes lives. in other words. enjoy brighter lighting and better phone access. the higher the cost. The reason has to do with the second problem. the economics of poverty. The solution is to offer modern energy as a service. Stima was founded to profitably address pervasive demand for affordable energy at the Base-of-Pyramid. “power and empowerment”.About Konrad App For the last three years the founders of Stima piloted ways to bring pay-per-use solar energy to the poorest communities in Kenya. A girl rose to the top of her class reading by LED light. tripled collection rates within weeks. while saving money and generating revenue for all parties involved. or. The further kerosene travels from an urban center. which can reduce kerosene usage and pay for itself in a little over two months. A brick layer doubled his business by keeping his phone powered on. These and other Base-of-Pyramid user innovations demonstrated a world of possibilities starting with the way to bring modern power to remote villages. A user introduced the idea of group guarantee. which when implemented in trials. Another pilot user recruited 70 users from neighboring home villages and generated five times the average daily income from pilot commissions. paid for in small amounts to fit rural spending habits. We bring power to people and empower them to participate in the operation of our service. Stima means “energy” in Swahili and “esteem” (where we get the word) in Latin languages. even on a solar product that can save in the long run. At the Base-of-Pyramid people are held back by expensive energy and lack of financing: energy in rural villages costs 50 times more per unit than what you and I pay. Efficient energy simply has not been accessible to the rural village.