2020 Impact Report Pearl Entrepreneurs Academy - Bridges for Enterprise
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Letter from the Founders Uganda is blessed with an abundance of natural renewable energy. The amount of light transmitted to earth by the sun in one hour is good enough to fulfill the energy demands of the entire planet of one whole year. Thus, the question facing the country is not how to gain access to these resources, but rather how to how to tap into it and bring it to people. Faced with the challenge of climate change, the world is increasingly turning towards de- carbonization of its energy sources. The result is a trend towards the use of renewable energy globally. Reflecting this global trend in Uganda, Pearl Entrepreneurs Academy (PEA) is a clean energy distributor focused on delivering clean energy and organic agriculture products to underserved communities in the last-mile. In the last two years of operations, PEA has gained incredible momentum, rapidly expanding to 10 villages in Eastern Uganda. However, in 2020, PEA’s strong growth has been hindered by COVID- 19’s large impact, and the need to take the necessary health precautions and safety measures put a pause on PEA’s distribution efforts. That being the case, our team did not falter, and we continued to pursue other opportunities, such as applying to grant applications and forming partnerships with Briquette makers to help us improve our business operations. After COVID-19, our team plans to reopen with a stronger action plan and a drive to make greater impact in Eastern Uganda. Our dedication distinguishes us from the competition. Anyone can become an entrepreneur; however, not everybody is going to have the same level of success. Entrepreneurship takes a lot of experience, discipline, confidence and willingness to leave one’s own comfort zone. Entrepreneurs live in an environment of uncertainty, where there is no prerequisites to becoming a successful entrepreneur. However, exhibiting the aforementioned characteristics will continue to fuel our growth in expanding Pearl Entrepreneurs Academy. “ Together we are building a more sustainable future in Together we are building a more Uganda– a future in which youth and women Energypreneurs drive the clean energy transition in the Pearl sustainable future in Uganda– a future in of Africa. We’ve compiled this report to recount our stories which youth and women Energypreneurs “ and to display PEA’s impact on last-mile communities to drive the clean energy transition in the date. We invite you to join us in creating a brighter Uganda Pearl of Africa. and to be a part of our story! Elvis Kadhama and Natima Simon Co-Founders of Pearl Entrepreneurs Academy 2
Who is Pearl Entrepreneurs Academy Started in 2018 by its co-founders Natima Simon and Kadhama Elvis, Pearl Entrepreneurs Academy (PEA) is an environmentally-driven social enterprise focused on delivering renewables and organic agriculture products to underserved markets in last-mile communities. Our business product line spans multiple product types, including:* Solar Lanterns Low Emission Cookstoves Briquettes Water Filters *Note these products don’t include the organic agriculture products part of our new business line, which include organic fertilizers, pesticides, and seeds. How do we reach the last-mile? To reach last-mile communities, PEA has created an innovation in distribution. We build relationships with local village leaders and Village Savings and Loan Association (VSLA) groups and collaborate with both entities to hold large clean energy education workshops. To accommodate to consumers who cannot afford to bear the immediate upfront costs of our products, we offer a “Rent-to-Own” model to create customized installment payment plans for each individual. PEA has made it its purpose to improve the lives of many low-income families by providing them with life-changing clean energy products. Results from impacted villages/families have been overwhelmingly positive, with customers reporting increased productivity, increased safety for children and women at night, longer learning hours for children and less smoke inhalation from cooking for women. These benefits largely result from PEA’s work in distributing life-changing clean energy products. Our team of 15 Energypreneurs will continue to spearhead distribution into more village communities, improving sustainable livelihoods and leading positive change in last-mile communities. 3
Our Focal Populations Our mission is to replace dirty and expensive lighting and cooking solutions with sustainable energy alternatives for millions of people living without electricity in eastern Uganda. The millions of people living without electricity are often those living in rural communities or in urban informal settlements. These ”last-mile” community residents are groups of resilient individuals who can benefit greatly from clean energy products. WHO ARE PEA’S CUSTOMERS ? 90% of PEA’s customers are female Most of PEA’s customers are those living in extreme poverty (< $2 PPP/day) All live in off-grid locations and in rural or impoverished urban areas 4 Picture from our partner manufacturer d.light
Our Impact to Date This year, Pearl Entrepreneurs Academy has dedicated our efforts to better tracking our impact. Our organization was created to improve the livelihoods of rural villagers and DID YOU KNOW urban informal settlement inhabitants through the distribution of clean energy products. Thus, we have created In 2019, the United a robust framework adapted from the United Nation Nations implemented the Sustainable Development Goals (UNSDG) to track and People, Planet, Prosperity, quantify our impact. Peace, and Partnerships framework to measure the PEA has adopted the People, Planet and Prosperity impact of the UNSDGs. model to measure our impact: PEA has adapted the framework to measure our 1. People focuses on the determination to end poverty impact through People, and hunger Planet, and Prosperity. 2. Planet helps communities reduce emissions and deforestation to transition to more sustainable lifestyles 3. Prosperity ensures that all human beings can enjoy prosperous and fulfilling lives PEARL ENTREPRENEURS ACADEMY IMPACT TO DATE* People Planet Prosperity 2M 200+ 600 Hours of Kerosene Exposure Reduced Tonnes of CO2 Emissions Reduced Customers and 7,200 Beneficiaries Served 440K 40K 187M Hours of Cooking Smoke Exposure Reduced Litres of Kerosene Reduced Ugandan Shillings Saved for Customers 35 15 Trees Saved from Deforestation Youth & Female Energypreneurs * These figures were calculated based on our partnership with Bridges for Enterprise. When Covid-19 lockdown restrictions lessen, we will be able to continue expanding our impact along the metrics above. 5
2020 Achievements This year, PEA has aligned itself more closely with supporting the UNSDGs. Specifically, our business directly correlates to four key SDGs (No Poverty, Gender Equality, Good Health and Wellbeing and Affordable and Clean Energy), with overlapping influence in other fields, such as Good Health and Wellbeing. S R O I What was PEA’s Social Return on Investment in 2020?* Every dollar invested in our sales and distribution leads to: 152 Hours of harmful fuel and smoke exposure reduced for PEA’s customers and beneficiaries 0.01 Tonnes of CO2 prevented from being released into the environment from kerosene, deforestation, and wood-burning 3.10 Dollars of each customer’s income saved to be used for other productive activities, such as pursuing an education * Note Social Return on Investment (SROI) is determined by our total impact to date. Future impact tracking strategies will begin to disaggregate SROI calculations by year. 6
Meet Our Energypreneurs! Despite COVID-19, 2020 has been a strong year of employment for our team. This year, PEA onboarded 11 Energypreneurs– dedicated sales agents – who help us DID YOU KNOW market and sell clean energy products across 10 villages. PEA now has 16 dedicated staff members and 15 In rural Uganda… 15% Energypreneurs to support our mission. of youth (ages 15-24) are As a social business, our enterprise exclusively hires women unemployed 1 and youth, two groups who, despite having highly entrepreneurial and refined skills, have historically faced barriers in the labor market in rural Uganda. Energypreneur Focus Testimonial “The income from clean energy business allows me to contribute to household earnings, gain confidence, achieve financial independence and respect from my family. I now play a big role in household decision- making. From the training and mentorship I’ve received from PEA, I have gained important professional skills in Namugwana Besi Female Equity marketing, financial management, communication strategy and industry knowledge.” Luglolole Village Energypreneur Focus Testimonial “Since I’ve joined PEA, I’ve gotten the opportunity to work with the PEA team to solve challenging community energy problems. I have enjoyed happy working conditions and have forged strong relationships with my fellow Energypreneurs and customers. As an Energypreneur, I have been able to network with customers of diverse backgrounds and have also Muwanguzi Shadrack Youth Power cultivated my own knowledge on the health and Bugingo Village financial benefits of clean energy products” 1 Trading Economics. “Uganda - Unemployment, Youth Total (% Of Total Labor Force Ages 15-24)”. 2017. 7
Meet Sooma: A PEA Customer Sooma Samali Tsetse Village Mayuge Town Proud Ugastove Customer Sooma Samali lives in the Tsetse Village in Mayuge Town, Uganda. Until recently, Sooma used “ a local cookstove, which was energy inefficient and emitted a great deal of smoke, posing both financial and health burdens on her and her family. At the beginning of 2020, Sooma met with PEA sales agents and was donated a Ugastove such that she could trial the product. As a result, Sooma is now able to use the Ugastove to cook food faster and use less resources. Sooma now no longer uses her local cookstove. I just use the Ugastove because it cooks “ faster, and it’s dual, allowing me to cook with both charcoal and firewood... I just need a quarter of the firewood I have to use on an Upon entering the community, PEA also open fire, so I save a lot of money every day. hosted education workshops on clean energy, collaborating with local VSLA groups to do so. PEA believes in education as a means of promoting long-term empowerment and understanding of unsustainable energy use. 8
Meet Sooma: A PEA Customer Nakaziba Topilister Giriri Village Mayuge Town Proud Solar Lantern Customer Nakaziba Topilister lives in the Giriri Village of the Mayuge District Uganda. Prior to meeting “ the PEA team, Nakaziba used kerosene lamps as her main lighting source, situating them in the house and the cooking hut outside. However, kerosene lamps create health, safety and financial concerns on residents. Kerosene emits a significant amount of carbon dioxide and noxious gases that impact those operating at close proximity to these lamps. This lighting method is highly prone to gas explosions and requires recurring oil purchases. “ I’m really happy with my d.light A2 solar lantern...The solar lantern works as promised and it gives me bright light in the entire room….With A2 being portable, my daughter and son can use it in the evenings to sort rice After participating in a VSLA education and to study. session taught by PEA, Nakaziba purchased the A2 solar lantern model and is excited about the functionality of the product as well as purchasing more PEA products in the future. While Nakaziba purchased this product through personal savings, she plans to purchase the Ugastove through a loan facilitated by her VSLA group. 9
New Initiatives in 2020 Throughout 2020, our leadership has spent time thinking about making our business stronger and more resilient. Coming out of COVID-19, we are prepared to relaunch of business operations with a stronger and more clear action plan. Clean Energy Segment Expansion This year, our whole PEA team underwent training to create organic, eco-friendly briquettes to pair with our low-emission cookstove sales. We will offer briquette training and sell our own briquette products to our customers and beneficiaries moving forward. Business Unit Expansion: Organic Agriculture We listen to our customers. That’s why when they said they wanted to see more product offerings for organic agriculture products, we listened. This year, we are expanding our business unit to encompass organic agriculture products to include organic fertilizers, pesticides, and seeds. Marketing & Fundraising With COVID-19 winding down, our team has also sought to expand our marketing and fundraising channels. This encompasses creating and publishing more digital marketing graphics as well as a fundraising campaign. 10
Media & Publications “ Before our launch, rural people were underserved and left out, because nobody was thinking about how to extend these life- changing products to them. Now, we have helped them access clean energy products which are durable, warranted and money- saving, all at affordable prices. ” Elvis Kadhama, Pearl Entrepreneurs Academy Bridges for Enterprise “ Pearl Entrepreneurs Academy is emerging as a model social business combining entrepreneurship with community social service in the last mile.” New Energy Nexus “ PEA works together with community-based trainers who earned the trust and respect of their respective VSLA groups and its members on a commission basis. Erik Löwer, Business Development Volunteer Medium Blog 11
Partnering for Change This enterprise is supported through its partnerships with various stakeholders, ranging from national and international organizations, investors, research institutes, suppliers, other social and environmental enterprises. Bridges for Enterprise (BfE) is an organization of students and professions offering Pro Bono advisory services to social enterprises in emerging economies. PEA underwent BfE’s consulting and financial advisory incubation program, which has equipped us with the tools to grow our venture, creating a more inclusive and sustainable future. ENVenture Enterprises Uganda finances and trains Community Based Organizations to launch rural clean energy enterprises in Uganda. It supported PEA with clean energy start-up loans. This year PEA qualifies for the ENVenture growth fund. D.light Designs Uganda Ltd: supplies discounted, quality, affordable and durable solar lanterns warranted for two years. They also provide PEA with marketing and technical support, including product repairs and replacements. Angaza is a social enterprise that has created a technology platform through which social entrepreneurs can track its sales. Its services will accelerate PEA’s solar product distribution in rural communities. 15 VSLA Groups VSLA and local leaders allow us to hold education workshops for local villagers, enabling us to distribute solar 10 Local Leaders lanterns and solar home systems to their group and community within the Mayuge district. 12
Thank You to our Donors Pearl Entrepreneurs Academy would not be where we are without the contributions by our generous donors, financiers and volunteers. Thanks to your contributions, we were able to buy more inventory, expand our marketing and improve our internal infrastructure, which has contributed to our ability to reach 600 customers and 7,000+ indirect beneficiaries. INDIVIDUAL DONORS GRANTS • Marvin Tumusiime • The Pollination Project • Elizabeth Kalemera • The McGinnity Family • Gloria Kayanga Foundation • Henry Sempangi Sanyulye • One Young World Summit • JB (Scholarship offered to Co- • Sheila TIV Founder Elvis Kadhama) MICROLOANS INCUBATORS • ENVenture Enterprises • ENVenture Enterprises • Climate LaunchPad 13
LIGHT UP EASTERN UGANDA © Pearl Entrepreneurs Academy 2020 Photography: Pearl Entrepreneurs Academy Copywriting & Design: Annie Wang Front Page: Co-Founder Elvis Kadhama in a VSLA group meeting discussing the benefits of clean energy Back Page: A family member of PEA customer Nakaziba Topilster
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