Nairobi, Kenya, August, 2013 ― A new report by the joint IFC-World Bank Lighting Africa Program projects that Africa is set to become the world’s largest market for clean off-grid lamps, with up to 140 million people having access to better lighting by 2015. The market for quality off-grid lighting products in Africa has seen a 300 percent growth in sales in the past three years.
The Lighting Africa Market Trends Report 2012 – Overview of an the Off-Grid Lighting Market in Africa, provides a snapshot of the region’s off-grid lighting market in Africa. In Africa 600 million people still rely on expensive, ineffective, and sometimes dangerous lighting sources, such as kerosene.
The market for quality off-grid lighting products has matured more rapidly than Lighting Africa predicted three years ago. The report projects that cumulative sales could grow to 28 million solar lanterns in Africa by 2015, double the 2010 estimate.
Itotia Njagi, Lighting Africa’s Program Manager, said, “IFC and the World Bank are committed to ensuring consumers gain better access to products that meet basic needs. With the price declines in raw materials and solar panels, off-grid lamps are becoming increasingly affordable and within reach for rural households that lack electricity. Lighting Africa on track to reach 250 million people without electricity by 2030.”
Lighting Africa is helping build a market to bring off-grid lighting across Africa by establishing quality standards, investing in consumer education, creating a favorable investment climate, and supporting innovative business models.
Consumer stand to gain the most from a growing market for clean off-grid lights that offer better value to low-income buyers than they did three years ago. Current product offerings have benefited from a decline in manufacturing costs while quality has improved with longer battery life, increased brightness and new features such as mobile phone charging and pay-as-you-go options from the current product offering becoming more common.
Multinational such as Schneider Electric, TOTAL, Panasonic and Energizer are now taking an interest in a market that had been dominated by smaller companies. This has the potential to drive this market at a faster rate.
By converting from kerosene to clean energy, millions of consumers can improve their health, reduce their spending on expensive fuels, and benefit from better illumination and more productive time in their homes, schools and businesses.
The Lighting Africa Market Trends Report gathered input from a broad range of industry experts, manufacturers, distributors and civil society organizations. It is the second issue in a series.
Download the report here
About Lighting Africa
Lighting Africa, a joint IFC and World Bank program, seeks to accelerate the development of commercial off-grid lighting markets in Sub-Saharan Africa as part of the World Bank Group’s wider efforts to improve access to energy. Lighting Africa is mobilizing the private sector to build sustainable markets that provide affordable, modern off-grid lighting to communities across Africa that are not on the electricity grid. The program and its partners have brought cleaner, safer, and better lighting to close to 7 million people and are working to increase energy access, providing better lighting to 250 million people by 2030.
Lighting Africa is also a key element of the Global Lighting and Energy Access Partnership (Global LEAP), an initiative of the Clean Energy Ministerial.
Lighting Africa is implemented in partnership with: The Africa Renewable Energy and Access Grants Program • The Climate and development Knowledge Network (CDKN) • The Global Partnership on Output-Based Aid (GPOBA) • The Energy Sector Management Assistance Program (ESMAP) • The Global Environment Facility (GEF) • Italy • Luxembourg • The Netherlands • Norway • The Public-Private Infrastructure Advisory Facility (PPIAF) • The Renewable Energy and Energy Efficiency Partnership (REEEP) • The United States.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org
About the World Bank
The World Bank is a vital source of financial and technical assistance in developing countries worldwide, with a mission to help reduce global poverty and improve living standards. However, it is not a bank in the common understanding of the term. Rather, it is comprised of two unique development institutions owned by 185 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Each institution plays a different but supportive role.
The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries in the world. Together, they provide low-interest loans, interest-free credit, and grants to developing countries for education, health, infrastructure, communications, and many other purposes. The World Bank concentrates on building the climate for investment, jobs, and sustainable growth to enable economies to grow, and investing in and empowering poor people to participate in development.
For more information, visit www.worldbank.org