Development of a franchise business model and reporting tool for rural electrification in Sub-Saharan Africa using flexible mini-grids

Abstract

FlexGrid is a business concept invented by GreenVentures CleanTech BVBA and Flamengo Services that wishes to address United Nations' Social Development Goal 7 of bringing clean affordable energy to all by 2030 by offering a breakthrough approach for rural electrification. FlexGrid proposes a fully distributed and scalable architecture of a mini-grid, made possible through the use of Artificial Swarm-Intelligence as developed by PowerBlox AG. Related to scaling the business, the company sees itself faced with three problems: the need for a reporting tool in order to communicate their performance to shareholders, and the decision to either buy or build the tool; insights on the viability of a proposed franchising business model with which they can scale as quickly as possible; installing a pilot village as soon as possible in Burkina Faso and developing procedures to facilitate this process in possible future countries. The approach of a strategy map based on a strategy of collaborative growth results in a strategic KPIs that lead to a list of reporting and monitoring requirements. A mismatch of those requirements and the tools currently at hands for FlexGrid lead to the conclusion of buying the software tool provided by RafikiPower in the short-term and building the software in the long run because of the centrality of the software tool in the proposed business model. The viability of the franchising business model was checked using a financial plan. The input in this plan is based on content of a business model canvas, findings from market research on countries in Sub-Saharan Africa and an earlier made business model based on the Monte Carlo method for the company`s project in Mali. This results in the conclusion that franchising is feasible, based on the internal rates of return that are found for both the franchisor and the franchisee on a 10-year basis. The company's main objective is to prove its concept to all possible stakeholders by setting up pilot projects in rural communities. FlexGrid's main focus at this very moment is the pilot project of Namisigui, Burkina Faso. The process for getting approval for the pilot village in Burkina Faso included a multitude of meetings with authorities and its findings can be used to draw up a standard procedure for further expansion