Access to Sustainable Energy Technologies Using Remittances as a Source of End-User Finance

Under the auspices of an IDB grant, Arc tested an innovative and untraditional remittance transfer model identified during market research conducted by Arc in 2009 as being attractive to both remitters and receivers. The goal of the project was to radically increase the availability and number of sustainable energy products for Haitian consumers, using remittances as the financing source. Specifically, the goal was to sell at a minimum 5,000 sustainable energy devices over a 12-18 month period, benefiting 30,000 people. The project tested a remittances business model wherein the sender uses remittances to buy the energy products from a goods transfer organization (GTO) that has agreed to provide a range of goods – such a lanterns, cell phone chargers, or solar home systems. After selecting the item to be purchased, the remitter can choose to have the sustainable energy product home delivered or picked up at a specific location in the recipient country. The project also has an important enterprise development component in that it will create a new business model for the Haitian remittances partner Project implementation began in 2011. This project has been funded by the IDB and both Arc and the IDB have an interest in replicating the project if it is successful. Replication efforts began in Bolivia under the auspices of Gaia and BASE. The goal of the project is to sell at a minimum 5,000 sustainable energy devices over a 12-18 month period, benefiting 30,000 people. ||| Under the auspices of two grants one from the InterAmerican Development Bank/Multilateral Investment Fund and one from the Clinton Bush Haiti Fund, Arc is testing an innovative and untraditional remittance transfer model identified during market research conducted by Arc in 2009 as being attractive to both remitters and receivers. The goal of the project is to radically increase the availability and number of sustainable energy products for Haitian consumers, using remittances as the financing source. The project is testing a remittances business model wherein the sender uses remittances to buy the energy products from a goods transfer organization (GTO) that has agreed to provide a range of goods – such a lanterns, cell phone chargers, efficient cook-stoves, solar ovens, or solar home systems. After selecting the item to be purchased, the remitter can choose to have the sustainable energy product home delivered or picked up at a specific location in the recipient country. The project also has an important enterprise development component in that it will create a new business model for Food Express, which is the GTO, and which specializes in food transfers. Food Express would like to diversify its operations beyond food and enter the appliances market. It is a relatively small company that wants to scale up quickly and has extensive connections through its board of Directors with the Haitian Chamber of Commerce in Miami, which in turn has agreed to serve as a marketing vehicle for the project. By linking Food Express to reliable international manufacturers of high-quality, low-cost sustainable energy products and developing its capacity to deliver a new set of products, the likelihood of a larger number of beneficiaries is greatly increased.