New Markets- Stories from the Frontier at the GOGLA AGM CASE STUDY ZIMBABWE BY WILLIAM PONELA (ZONFUL ENERGY)

Country Selection Government Policy- duty free, tax holidays etc Location – best sun radiation Market – over 80% of the population is off grid. High population growth

Market Risk Product Dumping –ex china products Free handouts – from NGOS

Experience High demands of products – solar home systems and irrigation Market resistance in other sectors – due to previous experience

Success Stories Overwhelming Acceptance of solar products – rural councils Government policy support – Government has come out with a policy to support renewable energy sector

Challenges Shortage of working capital – solar products are expensive for both consumers and distributors Advance payment requirement – manufactures require cash upfront for their product

Unanticipated Market Barrier Franchising – some of the companies who sell the products sell them for high prices Price collision from manufacturers – some manufacturers collide when charging high prices on solar products e.g. china

Unanticipated market Opportunity Zimbabwe has got 4 million skilled people in diaspora – these people are investing back home in solar home systems and solar irrigation systems. Its a market worth approximately 2 billion united states dollars High Population of peri urban and rural settlers who are off grid – due to high shortage of electricity and the challenges the grid is facing. No new grid connections are being done

The End