Market-Based Approaches and Financing

Speeches Shim

Clean and Efficient Cooking Technologies and Fuels Toolkit

Creating a market for clean stoves and fuels means getting the right logistics, incentives, financing and partnerships to reach even the most remote “last mile” users, requiring innovative efforts to overcome these challenges.

Long-term sustainability of impacts requires development of thriving local markets for cookstoves and fuels that can continue to supply quality, consumer focused products and services beyond donor funding timelines. Donor/project financial resources can be used to alleviate market barriers and encourage market innovation.

Best Practices

  1. Reaching BOP consumers through a market-based approach is still a challenge, especially for highly spread out, rural consumers. Donors can spur innovative marketing and distribution approaches through grants aimed at trialing outside-the-box strategies.
  2. Non-traditional distribution partners with large networks of potential cookstove customers, such as financial institutions, may be unwilling to risk their own funds to do projects in the cookstove sector. Funds for piloting new partnerships, coupled with technical assistance for new sector entrants can be effective at reducing the costs of market entry.
  3. Retaining a trained, professional and highly motivated sales force is one of the largest challenges facing scale up. Donors can support sales agent and entrepreneur training and mentoring, and provide technical assistance to stove companies in developing innovative sales incentives.
  4. Manufacturers, distributors and customers alike need sustainable, accessible sources of local financing. Determine what the most appropriate forms of financing are in your target market by investigating available financing options and identifying key gaps.
Saturday, September 30, 2017 - 5:00pm