MICROCAPITAL BRIEF: Fenix, MTN, UNCDF Cross-train Staff to Sell Pay-as-you-go Solar Home Power Systems, Facilitate Mobile Money Transactions in Rural Zambia

During a 10-month pilot project, Fenix International, a provider of solar home power systems that is controlled by France-based Engie; MTN, a telecom based in South Africa; and the UN Capital Development Fund collaborated to train 93 “Fenix Traders” to expand the uptake of solar home systems in Zambia. Previously, usage of the systems, which are enabled and disabled remotely based on users’ “pay-as-you-go” payments, were limited by a scarcity of mobile-money agents to accept these payments, particularly in rural areas. To address this problem, these Fenix Traders were cross-trained and equipped for both solar sales and the provision of mobile money services. Of the group, 82 operate in fixed locations such as small shops, and 11 travel to conduct business in various locations. The traders sold a total of 2,000 solar kits to 400 users in 12 districts of Zambia, earning an average of ZMW 500 (USD 34) per trader.

Fenix Trader Evans Mwape said, “I have been running my shop for quite some years now and because we are in the village, there has always been very low sales. But since becoming a Fenix Trader, I have seen a big difference…. I am enjoying the commission I receive on the mobile money transaction as well as the solar kit sales. What is interesting to see is when people come to make payment or withdraw money, they always buy some groceries as well, not always a lot but even just a packet of biscuits.”

Engie’s holdings include: (1) Uganda-based Fenix International, which has delivered solar home power systems to 500,000 people in Benin, Cote d’Ivoire, Mozambique, Nigeria, Uganda and Zambia as of 2020; and (2) PowerCorner, which deploys solar-powered mini-grids in rural Tanzania and Zambia. It categorizes these and its other business lines into “renewable energy, gas and services,” such as climate control and electrical engineering.

Formerly known as Mobile Telecommunications Network, MTN Group has 230 million subscribers in 22 countries in Africa and the Middle East. This includes 22 million mobile money subscribers in 15 countries. The company reported 2018 profits of ZAR 9.6 billion (USD 650 million) on 12-month revenue of ZAR 135 billion (USD 9.2 billion).

UNCDF promotes “financial inclusion that expands the opportunities for individuals, households, and small businesses to…climb out of poverty and manage their financial lives; and…showing how localized investments – through fiscal decentralization, innovative municipal finance, and structured project finance – can drive public and private funding that underpins local economic expansion and sustainable development.” As of 2017, the organization reported an annual budget of USD 60.3 million, reaching 4.3 million clients in 39 countries in Africa and Asia. More recent data on UNCDF is not available.

Sources and Additional Resources

UNCDF news item
https://www.uncdf.org/article/5298

Fenix homepage
https://www.fenixintl.com

Engie homepage
https://www.engie.com

MTN homepage
https://mtn.com

Additional MicroCapital coverage on solar products
https://www.microcapital.org/?s=solar

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.