When you look at the supposed “dark” continent, its social and
economic problems are abundantly clear. But it seems that Africa’s
entrepreneurs are stepping up and trying to find ways to solve some of
these challenges. There is a global energy crisis, and Africa in particular suffers
from a shortage of power and alternative clean energy sources. In this
first installment of our “Built in Africa” series, we feature one
entrepreneur stepping up to the plate to solve the continent’s problems —
Patrick Ngowi, the man bringing clean energy to East Africa.
“African innovation should focus on solving social and economic
challenges. That is key. Africa has to crawl before it can walk,” Ngowi
says when I ask where African innovators should focus their talents. Ngowi is the founder of the US$8-million solar energy company Helvetic Solar Contractors –
and he is only 28. I first came across Ngowi late last year while
researching alternative energy sources in Africa for low-income housing.
His company, based in Tanzania, supplies, installs and maintains solar
systems throughout East Africa. The clean tech entrepreneur believes that Africa is coming along nicely with regards to alternative energy sources.
“In fact, Africa is skipping ahead with urban and rural clients
choosing solar instead of mainline power. Solar prices have dropped
worldwide. More people can afford installation. With financing from
investors, we hope to introduce leasing for solar. This will be a game
changer,” he says.
An entrepreneur from a young age, Ngowi has been building his
business repertoire since he was 15, so it is no surprise that he is a
millionaire before 30.
Building Helvetic and driving clean energy in Africa
Many Africa nations suffer from irregular power distribution. It’s a
problem that alternative energy sources could solve. But have African
governments started to factor green energy into their policies in order
to solve this issue?
“Yes,” Ngowi tells me, although he admits that a whole “lot more
needs to be done” if we are to achieve sustainable power distribution.
When it comes to Africa’s energy crisis, Ngowi is confident that
technology is the answer and that it has already proven to be a key
driver of change for the continent.
“Technology is proving to solve key social and economical challenges
in Africa. Various outstanding records speak for themselves,” he says. When Ngowi looked at the research on power distribution, availability
and stability in Tanzania, the gravity of the power problems in the
country dawned on him and a company was born. “In Tanzania, we stand at 22% coverage, leaving out 78% of both rural
and urban potential clients off the national grid,” he explains. “What
made it more compelling is that other countries in Africa aren’t much
different. This makes solar both a short-term and long-term solution.” So he built a tech company that would help solve Tanzania’s energy
power problems. “I started Helvetic with all this in mind seven years
ago and registered as solar contractors so that we could scale up to
national and regional level while building our skills and capacity in
the region,” he says. This industry is growing in Africa and the coming years will decide how big it will get.
“Like the cellular telecommunications sector pushing out the
landlines in the last 20 years or so, I see solar companies as the
solution to the power woes that standard utility companies in their
respective African countries continually fail to deliver on.”
A struggle for finance
But a solar energy company isn’t the easiest thing to start and
sustain in Africa, Ngowi explains — even for a company that has proven
that there is demand for its product, with more than 12 000 solar kits
sold at US$99.
“Financing and investment is key. We have a proven track record but
find it hard to find investment,” he says. “The challenge is that
investment banks and private investors only want ‘big projects’ like
solar plants/farms and take the private sector for granted. From our own
record we have shown that in five years we managed to build 1st place
winner, Helvetic Solar Contractors, as the fastest growing company and
brand in Tanzania — a KPMG Award,” he says.
“It’s sad that a multi-million dollar social enterprise like ours can
not get any sort of funding and are forced to work with commercial
banks only. Their interest rates and terms hamper our goals and
expansion plans. We have re-sellers that are upset about the lack of
stock. Demand is very high.”
“It is a humbling challenge,” says Ngowi. “I face it every day when
demand soars and inventory runs low, making us fail to meet the demand.”
He argues that the local investment banking sector is weak in most of
Africa, and thus the focus should be on building this key area.
“African companies have lots of potential and it’s sad that
opportunists that have access to finance come down and simply copy and
paste our models and they get financing, rendering local companies
non-competitive compared to the millions they secure in investment
finance,” he says.
“All I seem to hear is a startup with no record getting financing
overnight because they have a Western or European connection. Such is
doing business in Africa I guess,” he adds. “I read somewhere that those
closest to the problems have the best solutions. This seems not to
apply in Africa.”
Challenges or not, Ngowi will not be stopped. His company has enjoyed
success in East Africa but he is looking for opportunities to move into
other parts of the continent.
“In East Africa, demand for our services has skyrocketed into Kenya,
Uganda and Rwanda. We are trying to cope but for us to expand to other
parts of Africa, we invite strategic partnerships. We are looking for
such partners.”
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