For every £960 invested into this campaign Sollatek will be able to source and distribute a solar cold storage system to Kenyan households and businesses previously off-grid.
Your investment will help Sollatek to provide 62 solar cold storage systems to businesses in Kenya.
Sollatek is 100% Kenyan owned and managed, and has been operational in East Africa for over 30 years. During this time the market for solar products has changed significantly and with their experience and local knowledge Sollatek is well positioned to help the estimated 29 million individuals in Kenya who are currently 'off-grid' gain access to clean, reliable energy. Over the last 7 years Sollatek has sold over 650,000 solar lanterns and solar home systems (SHS), and aims to sell a further 180,000 by 2018.
This project benefits from match funding from UK aid. UK aid has provided an up-front match of £15,000 meaning that for every £3 invested into this project by the crowd an additional £1 will be invested through match funding.
Key product information
Issuer: Sollatek Electronics (Kenya) Ltd.
Issuing Country: Kenya
Investment target: £60,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 5% per annum
Withholding tax rate: 15% (applicable to UK residents who do not invest within an IF ISA)
Interest payment frequency: 6 monthly
Notional repayment: 6 monthly
Financial instrument: Unsecured interest bearing bond
This is a bond issued by a single company (rather than a savings product) and therefore it is recommended that you are careful with the amount you invest.
You must read the investment memorandum (provided below) where a full statement of risks is presented.
What the project investment will enable
Over a two-year period, Sollatek will use funds raised from this campaign to procure, import and install solar fridge/freezer systems to those previously off-grid. The average cost per unit is £960 meaning that Sollatek will be able to provide at least 62 fridge/freezer systems. These systems will be sold to households, businesses and community organisations all of which would have been previously off-grid and without access to cold storage.
Each solar kit is manufactured by EcoGreen and the funds from this campaign will be used to purchase and import cold storage units between 90L to 235L. The 90L unit comes with 3 x 130W panels and 2 x 200AH batteries whilst each of the larger units come with 2 x 260W solar panels, 2 x 200AH batteries. All units also come with a 30A charge controller.
Sollatek expects that almost 80% of the systems supplied will be for productive use to help earn income. For farmers and fishermen, cold storage allows for greater control over when and at what price they can sell their produce. Most Kenyan fishermen estimate that on average around 30% of their catch is lost due to spoilage whilst those smallhold dairy farmers without adequate cold storage can lose close to 10-15% of their daily milk produce. The addition of a suitable solar fridge/freezer system can help increase household income levels whilst also encouraging better health practices and increasing the quality of the product.
Sollatek Electronics Kenya
With money raised from this campaign Sollatek will be focusing their efforts on the “underserved” areas of Kenya, which includes the coastal counties of Lamu, Tana River, Kilifi, and Kwale. These areas are defined as "underserved" by the Kenyan Government based on their CRA (Commission Revenue Allocation) report.
Sollatek prides itself on offering quality products at an affordable price and they offer courier delivery inlcuded in the price of their products as well as a 1 year warranty (even without proof of purchase). From their 8 regional services centres across Kenya, Tanzania, Uganda and Burundi they can offer superior after sales care with most faults fixed within 72 hours.
Social and environmental impact
Solar cold storage systems have been shown to have a significant impact on dairy, fishing and agricultural industries whilst also benefiting the environment. By making cold storage available, less produce will be lost from spoilage increasing household income. This also gives farmers and fishermen more control over their produce and encourages better health practices. The use of solar as an energy source also means that fewer pollutants and greenhouse gases are produced from electricity previously powered by fossil fuels.
In Kenya, the fishing industry is said to support an estimated 1.1M people whilst there are over 850,000 small hold dairy farmers. However, about 85% do not have access to the national electric power grid which means that much of their vital produce is lost to spoilage.
Small hold dairy farmers in Kenya without access to reliable cold storage
average loss of catch due to spoilage from a lack of cold storage
up to 15%
increase in household income by using cold storage
of milk in Kenya is not processed due to the lack of on-farm chilling options