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Growing Sustainable Business (GSB)

GSB in Madagascar

Launched in November 2003, the GSB Delivery Mechanism in Madagascar is actively facilitating innovative and pro-poor business ventures in various sectors. The GSB Coordinating Group in Madagascar comprises members from Government, the private sector, NGOs, and the development partners.

Documents available for download in French (in PDF format):

In Madagascar, the following GSB investment projects are being developed:

Lokoho Project

Lead Company

E7-Fund (EDF, RWE, Hydro Quebec)

Context

The rural electrification rate in Madagascar is below 3%. The targeted region (Sambava) is known world-wide for its vanilla production, but the potential benefits are far from fully reaped due to chronic energy shortages. Deforestation and Indoor Air Pollution also remain as big challenges in Madagascar.

Description

Provision of electricity infrastructure to serve rural communities, SMEs, and social service providers through construction of a hydro-power plant and its related distribution network. The power plant will be built near Andapa and the power distribution line will link the two medium-size towns of Andapa and Sambava. About 20 villages around Andapa and on the line will be electrified. About 100,000 people are targeted by this investment.

Project Alliance

E-7 Fund (EDF, RWE, Hydro Quebec), Electricité de Madagascar (EDM), Groupement des Entreprises de la SAVA (GES), Ministry of Energy and Mining, Agence pour le Développement de l'Electrification Rurale (ADER), JIRAMA, CARE, Association nationale d’ action environnementale (ANAE), IFC, UNDP, Gesellschaft fuer Technische Zusammenarbeit (GTZ)

Key beneficiaries

Rural populations, municipalities, and SMEs in the SAVA region.

Expected impact

Access to energy for productive SME sector with great potential, increased access to basic services (education, health, water, telecoms), accelerated economic development in the region, reduction of diesel and forest wood, resulting in improved health and positive impact on climate change; US$ 19 M investment (private and public, 23% public concessionary finance) will deliver electricity to 100,000 people & SMEs covering two towns and about 20 villages. Project builds local capacity to manage within 9 years.

Relation to MDGs

1) Poverty reduction through access to energy enabling private sector development and job creation, 2) Environmental protection through use of renewable energy such as hydroelectric energy.

Current status

Partnership between e8-Fund, EDM, UNDP, and the Government has been formalized in a MoU. Pre-feasibility studies have been completed and accepted by the e8 Board. Project is now in the feasibility stage which will last until around August 2006. BMZ has confirmed engagement through a Euros 3M grant for GTZ technical assistance to the project. GTZ is currently participating in the feasibility phase. The e8 Board will decide on project financing at the end of September 2006 when the feasibility study findings are reported.

PATH - Capacity Building of the Hydrocarbon Transport SMEs

Lead Company

Total

Context

The hydro-carbon transport sector in Madagascar is informal with low skill levels (80% of mechanics have not received formal training), no standards, high accident rates (more than 300 accidents per year on the main truck route with disproportionate impact on nearby villages), as well as an old vehicle pool (80% of fleet in circulation is over 10 years old).

Description

Improvement of the Hydrocarbon Transport SMEs by increasing skills among management and front-line workers in the sector, and facilitating access to finance for security equipment purchase.

Project Alliance

Total, Ministère des Transport, Logistique Petrolière, IST-T, APTH-France, APTH-Madagascar, VOARISOA, Banks, UNDP.

Key beneficiaries

SME actors in the hydrocarbon transport sector, truck driver, road users.

Expected impact

Enhanced productivity/income for SMEs, employment creation, enhanced safety for villages along truck routes in Madagascar, reduced chemical pollutions; improvement of administrative controls for the sector.

Relation to MDGs

1) Poverty reduction through employment generation and better road safety, 2) Improved environmental protection.

Current status

Two project officers have been recruited and a training plan is being carried out since August 2004. Training of both drivers and managers is complete since end of July 2005. More than 1800 people have received training. Communications with banks and SMEs have taken place regarding accessing a guarantee type fund to decrease bank interest rates for the SMEs so that they can improve/purchase security related equipment. PATH is now finalizing working with the Ministry of Transports and the GPM (Groupement des Pétroliers de Madagascar) members in order to implement a solution that will ensure sustainability of the program and proper closure of the project.

Lake Alaotra Project

Lead Company

EDF

Context

The rural electrification rate in Madagascar is below 3%. The Alaotra Lake region is an agricultural zone, which remains undeveloped due to low access to energy. Problems linked to energy in Madagascar include deforestation and diseases linked to breathing charcoal/wood smoke used indoors. The electricity sector reform of 2002 allowed for an improved enabling environment for investments in rural electrification with the creation of the Rural Electrification Development Agency (ADER) and the National Electricity Fund (FNE). Concession delivery and investment subsidies for rural electrification go through a Call for Proposal process.

Description

Creation of a local Energy Service Company:
- for about 15,000 customers in the Lac Alaotra region over 20 years
- offering a range of services (basic, extended, productive) through individual photo-voltaic kits and micro-networks fed by diesel generators and micro-hydro power plants.
EDF will ensure knowledge transfer to the local Energy Service Company

Project Alliance

To be established.

Key beneficiaries

Rural populations, municipalities, and SMEs in the Lake Alaotra region.

Expected impact

Improved access to energy and basic services (education, health, water, telecoms, etc.), with a major impact on community livelihoods.
Local economic development accelerated in particular in agriculture and tourism (rice, other agriculture products, ecotourism, etc.).
Decrease in the use of diesel and wood and use of a cleaner renewable energy instead leading to decrease in green-house gaz production and deforestation.

Relation to MDGs

1) Poverty reduction through access to energy enabling private sector development and job creation, 2) Environmental protection through use of renewable energy such as photo-voltaic.

Current status

Following the complete operationalization of two state agencies, the ADER (Rural Electrification Development Agency) and the FNE (National Fund for Electricity), the project is now awaiting Call for Proposals from ADER for the Alaotra region.

          Microfinance Project

Lead Company

BFV - Société Générale

Context

The micro-finance penetration rate in Madagascar is approximately 5%, while MSE creation is severely hampered by lack of access to financing. MFIs have insufficient capital to meet demand of the MSEs and other local banks have not been willing to lend to this sector without very high barriers to access (e.g. onerous collateral requirements). MFIs are limited in their ability to lend to SMEs due to capital constraints.

Description

BFV-SG co-finances micro and small entrepreneurs (MSE) screened by Entreprendre à Madagascar (EAM), a local Microfinance Institution (MFI), which also provides business advisory services and training to the MSEs and is in charge of following-up on loan repayment.

Project Alliance

BFV-SG, Entreprendre à Madagascar (EAM) and UNDP.

Key beneficiaries

SMEs and microfinance institutions.

Expected impact

Enhanced access to finance for the MSEs. Access to a greater pool of funds for the MFI. Ability for BFV-SG to enter a new market while lowering the risks to do so.

Relation to MDGs

Poverty reduction through local economic development and employment creation.

Current status

The MoU with Entreprendre à Madagascar (EAM) was signed on January 27. The two parties are starting the implementation phase.

          Industrial Wind Energy Center

Lead Company

Mad’Eole

Context

The rural electrification rate in Madagascar is below 3% and energy demand is much higher than supply. The Diego region offers great opportunities for wind energy production, which is a little developed production methodology in Madagascar. Wind energy has the potential to be delivered at a cheaper rate than the current supply in the region.

Description

Creation of an industrial wind energy centre in Antsiranana (Diego region). This will involve producing wind energy for Antsiranana and electrifying two villages in the region. In addition, Mad'Eole wishes to produce parts of the wind turbines and assemble them in Antsiranana.

Project Alliance

Ministry of Energy and Mines, JIRAMA, Agence pour le Développement de l’Electrification Rurale (ADER), Mad’Eole, Institut Supérieur de Technologie d’Antsiranana (IST-A), Secren (a local engineering company), Aerodyn (a German turbine manufacturer), UNDP.

Key beneficiaries

Communities and businesses in Antsiranana, and targeted surrounding villages.

Expected impact

Improved access to energy and basic services (education, health, water, telecoms, etc.), with a major impact on community livelihoods.
Local economic development accelerated in particular in agriculture and tourism (rice, other agriculture products, ecotourism, etc.).
Decrease in the use of diesel and wood and use of a cleaner renewable energy instead leading to decrease in green-house gas production and deforestation.
Technology transfer to a local company for producing parts of the wind turbines locally for the first time in Madagascar.

Relation to MDGs

1) Poverty reduction through access to energy enabling private sector development and job creation, 2) Environmental protection through use of renewable energy such as wind energy.

Current status

Business Plan developed. Mad’Eole is currently looking for strategic financial and technical partners and should start implementation during second half of 2006. Funding for the first rural site of Sahasifotra has been identified and implementation has started in July 2006. Collaboration with GTZ for technical assistance was formalized through an MOU that depends on availability of infrastructure funding for operationalization.

          Hotel Gasy Franchise

Lead Company

Tsara Ketrika

Context

The affordable, authentic and popular Hotely Gasy constitute all over the island the pit stop for national and international tourists on touristy roads. Their hygiene and service is often poor which gives them bad press in particular with international tourists. Most if the Hotely Gasy staff have not received training and tend not to maintain their premises very well. The Malagasy gastronomy as well as natural products are not exploited.

Description

A project to establish a franchise of local fast food restaurants ("hotely gasy partners" or HGP). The HGP would have common branding, fast service, minimum menu, strict hygiene for food preparation and premises, and high standards of hospitality and environmental friendliness. Franchiser will refurbish HGPs to the branding scheme, provide training and coaching, and control HGPs activities according to norms. The franchisees will be required to purchase a certain amount of food processed and delivered by the franchiser.

Project Alliance

To be established.

Key beneficiaries

Communities and entrepreneurs next to the HGPs.

Expected impact

Job creation and in particular women employment, women being the targeted partners for the project. 500 jobs should be created within 5 years with current projections. Human capital capacity building thanks to training. Food and hygiene quality ensured in HGPs.
Local economic development increased through promoting local artisans and entrepreneurs (ecotourism, etc.)
Decreased use of diesel and charcoal in HGPs outside the grid. Decreased green-house gazes and deforestation.

Relation to MDGs

1) Poverty reduction through job creation, 2) Environmental protection through use of renewable energy by HGPs.

Current status

Business Plan developed. Tsara Ketrika is currently looking for some of the financial and technical partners and is starting implementation in parallel. Initial work is going on in collaboration with IFC's SME Solution Centre. The first Tsara Ketrika restaurant was successfully launched on October 22 in Antananarivo. Tsara Ketrika is now working on identifying sites for the set-up of two more pilots in Antananarivo.

          Energy Diversification to LPG

Lead Company

Vitogaz

Context

The context is characterized by:

  • Demographic and urban growth (>6% growth per year in cities) leading to an increased demand for charcoal, and thus deforestation, environment degradation and threats on biodiversity.

  • Slowness of progress on the wood sector (sustainable forestry, improved stoves mainstreaming).

  • Need for a complementary tool to reduce the demand for wood charcoal: diversification of domestic energy. Among the alternative energy sources, LPG is the most efficient, cleanest and most available in the short and medium term.

Description

Energy diversification to LPG to reduce dependency on wood energy and pressures on unsustainably managed or protected forests. Thirteen cities in Madagascar and about 150,000 households are targeted over 4 years. The concept used is as follows: the consumer buys gas, pays for the bottle deposit through micro-credits managed by an MFI, the cooking device is subsidized and IEC activities are carried out with the support of WWF. Vitogaz is also developing LPG applications for water heating that could lead to job creation.

Project Alliance

Vitogaz, the other LPG operators, ONG Solidarité Forêts, WWF, FFEM, Entreprendre à Madagascar, UNDP and maybe GTZ..

Key beneficiaries

Communities in the targeted 13 cities.

Expected impact

- Improved access to alternative source of energy.
- Decreased natural forests degradation due to wood charcoal production.
- Decreased greenhouse gases emissions from wood charcoal burning.
- Improved health of women and children victims of indoor air pollution.
- Reduced time spent for domestic tasks.
- Job creation through value chain creation

Relation to MDGs

Poverty alleviation through improved livelihoods and potential job creations (productive use of LPG and value chain creation). Natural forests protection and decreased greenhouse gases through use of alternative energy to wood.

Current status

A Business Plan has been developed and tested through several operations by Vitogaz and some other of the operators. A proposal for public funding for subsidies has been submitted to the FFEM (Fond Français pour l'Environnement Mondial) and has been approved . The project is currently on hold due to the change in tax status of LPG in Madagascar since January 2006 (from VAT=0 to VAT=20%) that added to the increase of the price for oil, has created a situation where the price for LPG doubled making it out of reach of the poor. Lobbying at the Ministry of Economy, Budget and Finance (MEBF), with the help of the Ministries of Energy and Mining and Environment and several donors, has led to the MEBF considering a tax reduction at the next finance law revision, which should take place in October 2006. Vitogaz is developing applications for SMEs and micro-entrepreneurs (e.g. hotely gasy), at various stages of development. It is also looking into creating a new value chain for the commercialisation and installation of water heating applications of LPG targeted at medium to high income customers. This would lead to the recruitment and training of
specialist technicians and increased safety around the use of those products.

          Drinkable Water

Lead Company

BushProof

Context

Access to safe drinking water in rural Madagascar is less than 15% and is only growing slowly. Nevertheless, interesting opportunities exist for the introduction of simple, low cost water treatment technologies that provide safe drinking water where it is needed most: at household level. Owned and managed privately, such technologies can be maintained simply and cheaply, and are much more sustainable than community management systems.

Description

Manufacture, market and sale of range of affordable household drinking water solutions to individual low-income families. BushProof intends to introduce a small range of low-cost but effective technologies that ensure the availability of safe drinking water at household level. Such products would be available through small local (hardware) shops, "sanitation markets" set up and run on a non-profit basis by NGOs, or as small franchise businesses by BushProof itself. The innovation comes from the technologies introduced by BushProof, such as low-cost hand pumps, plastic biosand filter units, ceramic filters and hand washing dispensers.

Project Alliance

Ministry of Energy and Mining (water directorate), national WASH committee, social marketing experts, donors, local and international NGOs active in the water and sanitation sector, WHO, UNICEF, UNDP.

Key beneficiaries

Individual rural families throughout the country, as well as the urban poor and middle class.

Expected impact

BushProof products will contribute to a significant reduction in the currently very high levels of water borne disease, as well as the reduction of household expense on treating those diseases. It will finally contribute to job creation through the manufacturing and commercialization of its products.

Relation to MDGs

Reducing the number of people without access to safe drinking water, and poverty alleviation through job creation.

Current status

BushProof has already developed the technology for several simple and robust products as well as for "well jetting" that allows for wells to be built very rapidly and at very low cost to increase efficiency of NGO projects. BushProof now needs to finalize its business plan and in particular its marketing strategy and to broker the necessary strategic partnership for demand creation. It is also looking for financial assistance to produce a blow-molding tool to streamline production of its low-cost hand pumps.

          Water & Sanitation for the Urban Poor

Lead Company

Water & Sanitation for the Urban Poor (WSUP)

Context

The national rate of access to drinkable water in Madagascar is 27% only while access to adequate sanitation infrastructure is as low as 13%. 5 millions work days per year are lost, as well as 3,5 millions school days due to diseases linked to the lack of sanitation infrastructure. In Tana, the main water and sanitation problems are linked to the insufficient current infrastructure, its bad utilization, and the non-application of the existing monitoring policies developed for sanitation. These problems result in lack of drainage and bad waste management, exposing the populations to an increased risk of diseases linked to the unhealthy environment in which they live.

Description

The WSUP project comes as a complement to the current projects and initiatives existing in the capital city of Antananarivo and its suburbs (CUA and FIFTAMA) led by NGOs such as CARE or donors like EU. It will consist in bringing water and sanitation infrastructure to about 100 000 urban poor in the CUA and FIFTAMA and in including the establishment of the basic structures for infrastructure management and capacity building for Jirama - the local water services provider - and CUA/FIFTAMA for an efficient work with the poor.

Project Alliance

UNV, CUA, WASH Committee, Ministry of Energy and Mining (Water Directorate), EU Water Facility, local NGOs active in water and sanitation, JIRAMA, UNDP, donors.

Key beneficiaries

100 000 urban poor in CUA and FIFTAMA

Expected impact

The project will improve sustainable access to safe drinking water and sanitation infrastructure. It will also have an impact on health and hygiene of the targeted population. It will finally improve the livelihood of inhabitants of slum areas of Antananarivo and strengthen the CBOs involved in the process.

Relation to MDGs

Reducing the number of people without access to safe drinking water. Reduced water and waste borne diseases. Improved livelihoods for inhabitants of slum areas

Current status

WSUP and UNDP have been working to engage all actors involved in water and sanitation in Antananarivo in order to identify synergies of action and funding, as well as the best possible niche for WSUP's action. This mapping and design exercise was completed in May 2006. A WSUP local Program Manager was recruited to lead a feasibility study that should refine project scope and activities, and should be completed in December 2006. Findings should be presented in Antananarivo early 2007.

          Malaria & Artemisia

Lead Company

Bionexx - Technoserve

Context

Africa suffers around 80% of all cases of malaria in a given year and malaria is responsible for app. 10% of all deaths of children under five. Extensive use of traditional monotherapy treatments have built up unacceptable levels of resistance to their effectiveness. WHO and UNICEF are thus now advising countries to adopt artemisinin-based combination therapies (ACTs). WHO/UNICEF has forecasted that at least 132 millions courses of ACTs will be required globally in 2005, a four fold increase over 2004. Recent predictions are that only half of this demand is likely to be met and the bulk of these supplies will become available only towards the end of 2005. China and Vietnam currently dominate global supply, but are unable to keep up with rapid growth in demand. If African nations do not produce artemisia, cost of ACT treatments will remain high and wealth will be transferred toward rapidly growing economies rather than to African farmers, where continued poverty itself breeds malaria.

African producers have demonstrated an implied technical comparative advantage vs. China due to superior artemisinin yields, but donor support is needed to mobilize farmers and advise them on proper plant husbandry to ensure positive results. A feasibility study focusing in East Africa in 2004 funded by USAID showed that it is financially viable to promote expansion of
a program for cultivating and harvesting Artemisia annua and to establish extraction facilities to extract the active ingredient, artemisinin, for sale to pharmaceutical interests with product destined for the WHO/UNICEF supply pipeline. East African and Malagasy experts included in the Bionexx-Technoserve team believe that due to geographic, climatic, and agricultural similarity, the same holds true for Artemisia production in Madagascar.

Description

Bionexx aims to grow and harvest artemisia in Madagascar in order to extract artemisinin for Artemisinin Combination Therapy (ACT) treatments of malaria to be prepared by the pharmaceutical industry for the WHO/UNICEF supply pipeline. The local cultivation of Artemisia will offer new and diversification income streams for small holder farmers and should contribute to a healthier future for Africans in Madagascar and on the continent.

Project Alliance

TBD but likely to include: UNDP, WHO, UNICEF, Ministry of Agriculture, Ministry of Health, Regional Authorities where artemisinin is being planted, FAO, MCA, local NGOs, private sector partners, other.

Key beneficiaries

Africans suffering from malaria and small growers in the regions where Artemisia is and will be planted.

Expected impact

The project will contribute to increasing the availability of ACT on the market in order to bring a solution to malaria. It will also contribute to rural development in the regions where planting will take place through small-grower schemes. Job creation could reach 2000 people over 2 years. Finally the project will increase Malagasy exportations and contribute to decreasing the balance of payment deficit.

Relation to MDGs

Combat Malaria: Reducing the number of people dying from malaria;

Poverty Reduction: Rural development will allow for improved livelihoods of farmers and their families;

Global Partnership for Development: Bionexx will partner with East African countries producing artemisinin through Technoserve, as well as with multinational pharmaceutical companies and WHO/UNICEF, in order to deliver artemisinin based treatments to malaria to the most vulnerable.

Current status

Bionexx chose to locate its initial cultivation in Ambatondranzaka (Lake Alaotra) due to agronomic research on Artemisinin annua conducted there in the early 1990's by Mr. Juslain Raharinaivo, now part of the Bionexx executive team. Seed from there was utilized to support Bionexx's planting of 104 ha in 2005 and is intended to supply subsequent planting in Antsirabe and elsewhere. Bionexx has taken steps to secure additional tracts for growing about 450 ha of artemisia in 2006. So far Bionexx has created about 700 jobs and has contracts with 90 farmers on its outgrower scheme. Technoserve assisted Bionexx by providing cultivation/harvesting advice in the field as part of a technical assistance effort co-financed by the GSB. A donor roundtable was organized and facilitated by the GSB on February 20th in order to mobilise resources for the next phase of the project. MCA allocated 20 000 USD to the outgrower scheme to start with, and WHO is partnering with a local Malagasy laboratory to submit a request for funding to the Global Fund for HIV/AIDS and malaria for artemisin analysis equipment purchase that will be leveraged by Bionexx.


          VOHITRA Environnement

Lead Company

VOHITRA Environnement

Context

Today, about 840 tonnes of domestic wastes are produced on a daily basis in Antananarivo. Out of these 600 are collected and deposited in a controlled wasteland, while 240 tonnes are deposited in wild wasteland. All this waste represents about 160 m3. Almost none of these wastes are valorised through recycling, composting, energy generation or other. They represent a threat to the city given that waste borne diseases (plague, cholera, etc) still exist in Madagascar and outbursts are not uncommon.
The example of the situation in the capital city, Antananarivo, is unfortunately illustrative of the situation in the whole country. Although a national sanitation policy has been adopted, the situation with regards to waste management and treatment is in great need to be improved, especially in shanty town areas where the most vulnerable people live.

Description

This project is the first of its kind in Madagascar. It is looking at providing a public service through a PPP. It will be working in synergy with authorities, NGOs and private sector companies already involved in waste sorting, collection and/or valorisation. It will also be working in partnership with local research institutes in order to accelerate technology and competency transfers. It hopes that its action will contribute to the establishment of a national waste management policy and a judicial framework specific to wastes.

Project Alliance

TBD but likely to include: UNDP, UN-Habitat, Ministry of Energy and Mining, CUA, local NGOs, private sector partners, other

Key beneficiaries

The project will contribute to improve waste management in Madagascar. It will have a direct impact on sanitation and pollution, population behavioural change, job creation for sorters and collectors, and decrease in infectious diseases related to bad sanitation. It will also have indirect impacts on recycling, job creation for waste collection and sorting before recycling, local development around treatment sites, and reduction of health spending due to decrease in bad sanitation borne disease.

Expected impact

Improved sanitation and decreased pollution
Behavioural change with regards to waste sorting and disposal
Job creation for sorters and collectors at treatment sites and before recycling
Decreased health spending
Reducing the number of people with no access to adequate sanitation and suffering from poor sanitation related diseases

Relation to MDGs

Energy and Environment : Contribute to creating a sustainable environment through reducing waste related pollution and increasing recycling as well as organizing waste sorting
Poverty reduction : through job creation and improved livelihoods for people living in slums

Current status

Vohitra Environnement is currently working on waste sorting sensitisation in 7 communes around Antananarivo. It has also started mapping and establishing contacts with existing actors in waste collection and treatment all over Madagascar. In parallel it has finalized its business plan and is looking for finance in order to scale-up its compost-making facility to start with and then to develop its waste sorting and storage infrastructure. It is also looking for financial support to scale-up its waste sorting sensitising efforts as well as the constitution of a database on waste management activities and actors in Madagascar. A multi-stakeholder Project Alliance was created in June 2006 to facilitate partnership brokerage and successful project implementation.


          Eco Tourism Project

Lead Company

Le Monde en Version Originale (MVO)

Context

Madagascar possesses high tourism potential, with a broad diversity of landscape, flora and fauna unknown elsewhere in the world, matchless beaches, and a magnificent marine environment, all prime assets for the development of eco-tourism, plus a rich cultural heritage and craft tradition. However Madagascar suffers from the lack of infrastuctures to welcome all the tourists.

Description

VO uses an innovative imported eco-lodge technology that allows for a 5 to 6 months set-up. This will ensure that the ambitious goal of having 6 villages for a capacity of abut 40 tourists is attainable. MVO's values are to be in full symbiosis with the eco-touristic policy of the country. Each eco-village will target to become an economic, social, energetic and health centre for neighbouring populations.

Project Alliance

TBD but likely to include: Ministry of Culture and Tourism (MCT), Ministry of Industrialization, Trade and Private Sector Development (MICDSP), Ministry of Environment (MinEnv), ANGAP, local authorities, communities, NGOs and private sector, bankers and donors (IFC SME Solution Centre, Equator Ventures, etc...), UNDP/GSB, etc...

Key beneficiaries

The project will have an impact on the growth of the tourism sector in Madagascar, job creation (50 persons will be employed directly on each site and numerous indirect suppliers jobs), rural development and improved livelihoods in communities neighbouring the eco-villages, conservation and cultural exchanges.

Expected impact

Increase in the numbers of tourists coming to Madagascar
Job creation
Rural development and improved livelihoods
Conservation

Relation to MDGs

Poverty Reduction: Through job creation, rural development and improved livelihoods
Energy and Environment : Through the protection of environment in areas neighbour eco-villages and use of renewable energy

Current status

MVO has developed its business plan and already approached bankers in and outside Madagascar for financing its €1,450,000 loan needs. The return on investment is projected in 5 years. MVO is currently trying to finalize its project finance.

          Solar Power Project

Lead Company

Enov Solaire

Context

The rural electrification rate in Madagascar is below 3% and energy demand is much higher than supply.

Description

Enov Solaire's originality is its adaptation to rural households needs and budgets, and its innovative use of solar panels. The solar panels used have a 20 years lifetime, making the energy highly affordable to rural households at 4 Ar per Wh against 190 Ar for chemical batteries, and 208 Ar for car batteries.

Project Alliance

TBD but likely to include: UNDP/GSB, Banks and local donors, local authorities, private sector and NGOs, Ministry of Energy and Mining
Private sector partners for local distribution
UNDP/GSB to ensure that project moves on, partnership brokerage with strategic partners, potential technical assistance co-financing, etc.

Key beneficiaries

The project will contribute to increasing access to affordable and renewable electricity to rural households.

Expected impact

Increased access to information (radio, TV, cell phone) in rural areas
Reduced pollution by chemical batteries
Job creation

Relation to MDGs

Energy and Environment : through reduced pollution and use of renewable energy
Poverty reduction : through job creation and access to health and security related information
Access to Information and ICT (Cell Phones): through access to more affordable source of energy

Current status

Enov Solaire was selected by ICREA, a local innovative technology project incubator. ICREA assisted Enov Solaire in building its Business Plan and provided basic entrepreneurial training to the entrepreneur. ICREA validated Enov Solaire's business plan on April 11. Enov Solaire already manufactured and sold over 120 products in the rural region West of the capital Antananarivo, based on solar panels purcahsed in Tana since it did not have the cash flow to allow for Chinese solar panel container purchase. It is now looking at scalling down its business plan in order to access finance more easily and solve its current lack of stock issue.


Additional opportunities are being explored with entrepreneurs, including Vocalys, and Vohitra Environment..

For more information about GSB in Madagascar, please visit http://www.onu.mg/pnud/Pages/gsbmg.html or contact Pascale Bonzom (pascale.bonzom@undp.org).

 

 

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