Mobisol and IFC join forces to launch the PAYG business model in Ethiopia

Mobisol are proud to partner with IFC’s Lighting Africa to organize a PAYG (pay-as-you-go) business model workshop. Held in Addis Ababa, Ethiopia on the 22nd of  September, the objective of the workshop was to introduce PAYG business models and allow stakeholders the opportunity to define their roles and responsibilities in the Solar Home System value chain. PAYG is an innovative business model that is nascent in Ethiopia and would provide the solution to a host of distribution challenges. Typically, different stakeholders of a PAYG value chain for distributing Solar Home Systems do not have defined roles, creating a clear operational and communications gaps. The PAYG business model workshop tackled many of these operational challenges.

The stakeholders involved in the workshop were: 

  1. The regional energy bureaus
  2. Micro-Finance Institutions
  3. Youth Associations/ Small and Micro Enterprises
  4. Wholesalers/ Importers of Solar Products
  5. Retailers of Solar Products
  6. Mobile Money Companies namely MBIRR
  7. Development Institutes namely The World Bank Ethiopia

First, the participants formed groups and were asked to map out the value chain by using the Business Model Canvas by specifying the nine building blocks. After presenting the outcomes, they mapped out their envisioned PAYG business model. Two respective groups have agreed to launch the mapped out business model as pilots by December 2018. Mobisol is proud that Fortune, a national news outlet and EBS, an Ethiopian local TV channel, gave it relevant coverage.