Brightening the Night in Africa: the Lighting Africa Initiative

About 1.7 billion people worldwide live without electricity. The problem is most acute in Sub-Saharan Africa, where over 500 million people are without modern forms of energy, and where only about 2 percent of people in rural areas have access to electricity.

For many countries in the region, inadequate lighting has a severe impact on education, home and work life, health services, and the overall economy.

To address these challenges, a new World Bank Group initiative seeks to use advances in lighting technology, such as fluorescent light bulbs and light-emitting diodes, to provide clean, portable, durable, and higher-quality lighting at lower cost.

Jointly launched by IFC and the World Bank, Lighting Africa draws on the strengths of leading companies, the development community, and the international marketplace to replace fossil fuel-based lamps with brighter, safer, and more affordable lighting products. The goal is to provide basic energy services to 250 million people in the region by 2030.

Lighting Africa’s initial phase has three priorities: Launch a Development Marketplace competition for the design and delivery of innovative, low-cost, high-quality, nonfossil fuel lighting products for low-income consumers in Sub-Saharan Africa. Ten to 20 winners will receive grants of up to $200,000. Initiate market research in Ghana, Kenya, Tanzania, and Zambia to understand consumer demand, behavior, and preferences, while exploring local supply, marketing, and distribution channels. Results of this research will be available in January 2008. Inaugurate a business-to-business Web portal where manufacturers, distributors, and marketers worldwide can conduct business online and access the latest market information.

What is the Development Marketplace?

The Development Marketplace is a competitive grant program that supports private enterprises in developing and delivering a wide range of innovative products that improve lives in developing countries. It is a key part of the Lighting Africa initiative. The competition will reward project ideas that address the off-grid lighting needs of Sub-Saharan Africa, including alternative distribution models, new clean lighting technology, stronger production chains, and improvements in the policy environment.

The competition is open to a broad range of innovators around the world, including private businesses, nongovernmental organizations, universities, government entities, and individuals.

The deadline for submitting proposals is 2200GMT on October 31, 2007.

Creating Win-Win Situations

Lars Thunell, IFC Executive Vice President and CEO, said, “In partnership with the private sector, IFC will help develop sustainable business models to supply good quality lighting to the poorest of the poor in Africa. Our goal is to give families and small business owners clean, modern, and affordable alternatives to fossil fuel lamps.”

In Africa, poor people spend about $17 billion a year on fuel-based lighting sources, such as kerosene lamps, that are costly, inefficient, and provide poor quality light while polluting and posing fire hazards. For these consumers, lighting is often the most expensive item among energy uses, typically accounting for 10 to 15 percent of total household income. There is huge potential for engaging the international lighting industry, local suppliers, and service providers in the renewable energy market. In addition to serving consumers, this will bolster local commerce, create jobs, and enhance incomes. It will also help clean the air and improve health, safety, and quality of life.

Lighting Africa is expected to improve lives. Extending the work day for small and medium enterprises will help increase production and incomes. Better lighting will also strengthen health services delivery and enhance personal, business, and community activities, boosting safety and security. More time for studying will help improve students' grades and school retention rates. It will also create opportunities for adult literacy and higher education programs.

Partnering to Create Solutions

The project's lead sponsors include the Energy Sector Management Assistance Program, the Global Environment Facility, Good Energies Inc., the government of Norway, the Public-Private Infrastructure Advisory Facility, and the Renewable Energy and Energy Efficiency Partnership.

Affirming GEF's support, Monique Barbut, CEO and Chairperson of the Global Environment Facility said, "GEF was there at the beginning when we financed what has become a signature part of the Lighting Africa program - 'Lighting the Bottom of the Pyramid.' We are proud to have funded many of the renewable energy programs for rural electrification in Africa that help the poorest of the poor. Together with our development partners, we remain committed to these efforts."

Over 350 companies have expressed interest in the initiative. Vincent Loh, Chairman, Kenya Renewable Energy Association, said, "The Development Marketplace competition provides a unique opportunity for local African companies to participate in developing lighting products and services tailored to local market needs and conditions."


For more information, visit the Lighting Africa Web site at: http://www.lightingafrica.org or contact:

Lucie Giraud
Communications Officer
Tel: +(202) 458-4662
E-mail: lgiraud@ifc.org