| dc.description.abstract | The current pico-solar value chain knows a lot of challenges and despite the many advantages of pico-solar products, the uptake in rural Tanzania remains low. The distribution to reach the rural areas and the relatively high initial price of the products for the rural consumer are considered as the main obstacles for market adoption. Therefore, the value chain of the pico-solar sector needs to be improved in order to make the products more affordable and accessible for the rural population. Literature study and field work in three cities of Tanzania is done to investigate the possible solutions for improvement of the value chain. Both the supply side, the companies, as the demand side, the consumers, are taken into account in this report, although solely the supply side has been interviewed in the field work. The improvement of the value chain is researched through five activities of the value chain namely marketing, inclusive business, finance, distribution and after sales, discussed in perspective of both the supply and the demand side. Marketing can create awareness among the rural population about alternatives for the expensive, unhealthy energy sources they use now. Solar companies can increase their sales through marketing strategies. Inclusive business in the pico-solar sector can provide jobs and incomes for the rural population which can set development in motion. Companies can profit from the local knowledge of the rural population and market when they include local people in their value chain. Financial aspects can provide consumers with loans to buy products that would otherwise stay out of reach. For companies, the financial aspects of rural markets, with a big potential consumer base, contain many potential profit opportunities. The distribution of the products to the rural areas is important to make sure that products are available for the rural consumers to buy. For companies, distribution is important to keep the price of their products affordable and present in local shops. Finally, after sales is needed to keep the consumer satisfied after it has purchased a product. For companies it is important to create a functional after sales service, to build and maintain a loyal consumer base. These five activities of the value chain together can create business opportunities for companies to expand and grow in the rural areas. For the rural areas, these five activities can bring development through the implementation of the several abovementioned development opportunities. Moreover, they will provide pico-solar products to the rural areas. These products can bring light and therewith income opportunities for the rural households. | |
