The World Bank has released some results of its Lighting Lives program, where retail in Liberia and local supply chains were boosted as access to lighting was expanded.
With a mere 1.2% of rural population having access to electricity in 2012, a study conducted prior to the Lighting Lives program’s implementation had revealed that both an off-grid market and consumer awareness of off-grid products did not exist. In response to these conclusions, the first focus was to create local business networks and to lower the cost of products to end-users, by developing local supply chains. To this effect, the World Bank partnered with the newly-created Rural Renewable Energy Agency (RREA) to select and approve a set of off-grid products and involve local retailers, manufacturers and financial institutions, who received technical, financial and business strategy training.
Apart from having increased and improved access to lighting, the program has already seen an increase in consumer access to finance, higher consumer awareness and familiarity with off-grid products. Moreover, some local retailers began relying on women for last-mile distribution of off-grid products which has created income-generating opportunities for women. This is all the more important as Liberian authorities have struggled to succeed in bringing women working in retail towards the formal sector. Indeed, most women working in the sector own or are part of informal businesses.
Local supply chains and retail in Liberia have also benefited and developed. Retailers participating in the program have several advantages in terms of growing their business and selling off-grid products. These retailers are able to import products tax-free through the RREA, which serves as a bulk importer, paying only 10% in advance. This greatly reduces cash-flow problems while also lowering the overall cost of the supply-chain and, ultimately, the consumer retail price.
To date, the program has already provided lighting for 50,000 Liberians and supported the sale of 20,000 off-grid products.
