Exciting New d.o.b Investment in Kenya

illustration: Dietwee

Last summer, d.o.b invested in Mobile Meter, an exciting initiative at the forefront of technological innovation with operations in Kenya. Mobile Meter was a research and development Pilot Project being conducted by Signal Point Partners, a firm specializing in new mobile services for low-income people.

Affordable renewable energy

The Pilot Project tested a new service using mobile payments to make renewable energy products – such as solar lanterns – affordable to low-income people in provincial and rural areas living off the electricity grid. Customers use mobile payments such as MPESA to pay for renewable energy products and services on a “pay-per-use” basis, making them much more affordable.

The barrier to the development of solar powered products continues to be the upfront cost. Of course, there are other schemes that provide consumer financing, however, the M-Kopa's mobile technology model is far more efficient and effective. The effect is to charge customers for solar on a comparative basis as they would normally pay to purchase kerosene for lighting. When customers have fully paid the product, they own it and can continue to use it freely.

Establishment of a distribution network

The results of the Pilot Project have been quite successful and, as a result, a new company, M-Kopa, has been established to roll-out commercially the new service. Following its earlier involvement in the funding of the Pilot Project, d.o.b foundation has recently completed an equity investment in M-Kopa, alongside Gray Ghost Ventures.

The new M-Kopa service will be launched across Kenya in early 2012. The company will use the new funds to finance the initial growth and the establishment of a distribution network across Kenya.

Societal and environmental impact

The nature of the business is that the more products M-Kopa can sell, the greater the societal impact is and the more it also benefits the environment. Solar products are far better than kerosene for the customer, in terms of quality of light, health and safety, and long-term cost. An exciting result of the commercial activities will be to drive, overtime, a significant reduction of the household consumption of kerosene and other fossil fuels.