ToughStuff International
UK and Africa ToughStuff won a 2011 Ashden Award in recognition of its success in making small, reliable, solar-powered products available and affordable for off-grid users in Africa.
Background Despite continuing efforts, an estimated 1.4 billion people - nearly one fifth of the world’s population - lack access to electricity. Even in a country like Kenya where cities and towns are grid-connected and thriving, about 96% of people in rural areas are off-grid, as are many in poorer areas around towns and cities. Some live close to power supplies, but cannot afford the cost of connection. The founders of ToughStuff recognised that a very small solar photovoltaic (PV) module could power a range of useful products including LED lamps and mobile phones, and that by selling modules and products as individual items, they could be made more affordable for off-grid households, both rural and urban.
The organisation ToughStuff International is a commercial enterprise driven by a social purpose, which was founded by Andrew Tanswell and Adriaan Mol in 2008. Combined, they have over 20 years experience working in the humanitarian sector, which led them to realise how lack of electrical services in developing countries traps people in a cycle of poverty and creates environmental damage. The ToughStuff mission is ‘to bring affordable energy products to low income people thereby helping to increase living standards, improve health, enhance the environment, and build enterprise and employment’. Market research, product development and piloting started in Madagascar in 2008, and the commercial products were launched there in 2009. ToughStuff has 50 full time employees, and teams of local sales agents. Initial growth was supported by seed finance, and recent equity investment will enable future expansion.
The programme The PV modules and other products are produced in attractive display packages, and sold as both single items and as kits. In each country where it works, ToughStuff sets up a traditional sales structure, with distributors and wholesalers providing stock to retailers that range from supermarkets to small rural stores. Currently the main countries of operation are Madagascar and
CASE STUDY
Kenya – the latter is also the regional headquarters for the rest of East Africa. ToughStuff also has regional headquarters in Lagos and Johannesburg. Once the traditional distribution system is in place, the company starts to build its own ‘alternative’ distribution networks to extend the reach of products into more remote areas, often partnering with NGOs and microfinance institutions (MFIs). This may involve working with savings and credit groups, or providing the working capital to establish rural entrepreneurs. The entrepreneur can choose to sell products, rent products, or provide services such as phone charging. ToughStuff also works actively with NGO partners in the humanitarian relief field. It has sold products to humanitarian agencies working in Haiti, Pakistan and elsewhere. Sometimes a kit of products is tailored to specific needs for these partners.
The technology How does it work? The PV module uses a thin film of amorphous silicon to generate electricity from sunlight. ToughStuff devices that can be powered by the PV are: – An LED lamp with a rechargeable battery. It can be used on four different brightness settings.
– Eight different phone-charging connectors and a radio connector. These allow the PV module to directly charge most popular types of phone, or a radio.
– An independent rechargeable battery that can provide power to any of the other devices: it can be charged directly from the PV module or else from the mains via a standard USB connector.
ToughStuff gives a six-month warranty on all products, but expect a lifetime of at least two years.
How much does it cost and how do users pay? US$1 = KSh 85 [March 2011] Prices vary between countries because of different duties and distribution costs. For Kenya, current retail prices are:
PV module KSh 790 (US$9.3) Lamp KSh 650 (US$7.6) Phone connector KSh 100 (US$1.2) Radio connector KSh 240 (US$2.8) Power Pack KSh 680 (US$8.0) Traditional retail outlets sell for cash, and some MFIs offer loans to their customers. Rural entrepreneurs who have received support in the form of working capital are able to pass this on to their customers by offering instalment payments. In Kenya, other types of customer
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