Empowering Liberia’s Small Businesses through Productive Energy Solutions
In Liberia, Small and Medium Enterprises (SMEs) play a crucial economic role. However, they face numerous challenges with energy access, including high costs of fuel and generators, limited potential for growth, and hindered productivity. Without reliable access to electricity, these businesses struggle to operate at full capacity, impacting their ability to generate income and grow their operations.
Having one of the world’s lowest electrification rates, reaching only 34% in urban areas and almost absent in rural areas. Easy Solar, through the Power Africa initiative, is striving to make productive use appliances (PUAs) such as solar freezers and generators more affordable and accessible to SMEs in Liberia. This pilot project is set to impact about 132,000 people annually in the country.
Ekwene Nwali, a businessman located on Marshall Rd in Margibi County, is filled with excitement as he now has the opportunity to extend his shop’s operating hours into the night. Previously, he relied solely on the community grid for electricity, but unfortunately, it would rarely remain on for extended periods. He expresses his frustration, stating, “I spend $50 every month on the community current, but it keeps going off at all hours of the day.” This struggle is not unique to Ekwene, as many other business owners in Margibi face similar challenges and find it difficult to maintain a consistent power supply due to weak grids and rising fuel costs.
Fortunately, Ekwene was among the first customers to acquire a solar generator from Easy Solar on a credit basis, which has now allowed him to enjoy clean and reliable energy for his business. He shares, “The solar generator enables me to keep my shop open for extended hours during the night, and now I can serve more customers in a single day!”
Electricity access is a powerful tool for socioeconomic development. It can empower communities, reduce poverty and improve health. It can also increase educational attainment, facilitate economic growth and improve the overall quality of life. But all too often, these benefits are not automatic and can only be attained by coupling them to PUAs that can generate new or higher income streams for off-grid communities.
The adoption of productive-use appliances is a significant step up the energy ladder. It can additionally serve as loads that enhance the viability of off-grid, mini-grid, and utility services, helping reduce energy costs and improve supply quality.
Solar generators, in particular, are an environmentally friendly alternative to traditional fossil fuel generators, as they do not produce harmful emissions or require ongoing fuel costs. Solar generators can also provide economic benefits by enabling small businesses to operate more efficiently, and by creating employment opportunities in the renewable energy sector. Finally, the use of solar generators can help to reduce the carbon footprint of communities and contribute to a more sustainable future.
Easy Solar is also offering solar freezers, which can have a significant impact on SMEs income generation capabilities, particularly in areas with limited access to reliable electricity or where food preservation is critical. One of the primary benefits of solar freezers is that they enable business owners to store food for longer periods, reducing food waste and improving food security. This is particularly important in rural areas where access to fresh food may be limited. Many business owners also see the benefit of being able to sell cold drinks and ice packs at a premium, in communities where a cold chain is limited and such items are a luxury. Additionally, solar freezers can provide economic benefits by enabling small-scale farmers to preserve and store their crops, allowing them to sell their produce for a higher price and generate more income. Lastly, solar freezers are also an environmentally friendly alternative to traditional refrigeration systems, as they rely on renewable energy and do not produce harmful emissions.
The pilot is already generating huge interest across the country. Elton Reeves, Easy Solar’s Product Specialist for Liberia, shared that the surge in demand for these appliances is evidence of a critical need in rural communities: “Liberia has a large rural population, and access to reliable and affordable energy is a challenge in these areas. So what we’re seeing now is a positive response to a much-needed product category. We’ve received interest from over 30 business owners.”
Using their extensive network of shops and community-based agents, Easy Solar is reaching remote communities with these life-transforming products. Customers can also purchase these products through flexible financing options powered by pay-as-you-go technology.
Through the United States Agency for International Development, Power Africa recently awarded Easy Solar a grant as part of grants totaling $669,330 to five solar energy companies operating in Liberia. This funding aims to assist the grantees in distributing solar-powered productive use of energy (PUE) technologies that increase the income-generating activities of SMEs in the country.
Since establishing operations in Liberia in 2019, Easy Solar has provided energy access to over 50,000 people, many of whom are living in remote areas. This grant will enable Easy Solar to test and subsequently commercially launch productive use appliances in Liberia.
