Wana Energy Solutions

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Overview

Wana Energy Solutions provides clean, affordable LPG-powered cookstoves and appliances to customers at the base of the pyramid in Uganda.

Overview

Headquarters Kampala, Uganda
Established 2008
Impact Areas Uganda
Type For-Profit
Energy Sectors
Business Model Types
Staff Size 17 permanent staff, 2 volunteers, and 6 part-time motorcyclists
Annual Budget $60,000
Major Funders KIVA, E+Co, Uganda Investment Authority
Awards 2008: DMADE Developmental Marketplace for Africans in Europe World Bank Program – Finalists2012: Uganda Investment Authority 1st Runner-Up Small Category for the Investor

2014: SEED Award – Africa Winner

2014: Unreasonable East Africa Institute Fellow

2014: GSBI Online Fellow 2013

2014: Meteor Capital Network (formerly William James Foundation) Finalist

2014: SOCAP Entrepreneur Fellow

 

ABOUT

wana logo

Wana Energy Solutions is a Uganda-based enterprise that sells cheap liquid petroleum gas (LPG) and affordable cookstoves.  Wana offers a product package that is payable over the course of 6 months.  It includes two LPG tanks, accessories, and gas.  Customers make the payments daily over the course of 6 months, after which they become owners of the cylinders and accessories.  Customers who are not able to afford a complete set can use the product on a pay-as-you-go basis.  If the customer defaults, the components of the package serve as a collateral which can be sold to recover the outstanding credit.  They seek to displace charcoal and firewood usage and replace it with LPG, which is cleaner burning and more efficient.

 

 

Energy Products/Services

  • Wana Energy Solutions sells liquefied petroleum gas (LPG).
  • LPG consists of mainly propane and/or butane, and is derived from fossil fuel sources.
  • Wana Energy solutions provides customers with a product package that is financed over the course of 6 months. The package includes two LPG tanks, gas, and accessories such as a cookstove.
  • Pay as you go services for very low income earners.
  • They also deliver gas to customers, eliminating the need for customers to make a time-consuming trip into town to purchase fuel.
  • Financing can also be done through partner institutions such as KIVA.

Target Market

  • Wana Energy Solutions targets the lowest income bracket in rural, peri-urban, and urban areas.
  • They also serve local businesses such as restaurants, hotels, bars, and hospitals.

 

Wana Energy Solutions

Revenue Streams

  • Sale of LPG and LPG accessories.
  • Repeat customers for refills.
  • Consultancy on installation and design.
  • Delivery income to customers.

Value Proposition

  • Wana Energy Solutions seeks to be a pioneer in the transition away from unsustainable and unhealthy biomass-based fuel sources in Uganda.
  • Through the use of LPG, Wana Energy Solutions seeks to improve the quality of life, health, and income of Ugandan families at the base of the pyramid.
  • They hope to achieve a high level of impact by implementing an affordable product package that eliminates high upfront costs.

Problem Addressed

  • 90% of Ugandans rely on biomass for their cooking needs, which contribute to indoor air pollution, deforestation, and climate change.
  • LPG is a cleaner burning fuel, but only 0.01% of Ugandans use it due to high upfront costs associated with the purchase of equipment.
  • However, the cost of LPG itself is cheaper, making it more cost-effective in the long run.
  • Wana Energy Solutions’ unique finance-based business model and product package eliminates these high upfront costs, so that the cost-effectiveness and other benefits of LPG usage can be realized.

Where They Are Now

Impact to Date

  • Delivered 4500 canisters and 18,000 stoves to customers in the urban, peri urban and rural customers.
  • Served 25,000 people.
  • Estimated 1.5 million certified carbon emission reduction.

Milestones

  • 2008: Establishment.
  • 2009: Secured 1,500 canisters.
  • 2009: 45 customers reached.
  • 2010: Distributed 12,000 clean cookstoves.
  • 2012: Recruited 6 women franchisees.
  • 2014: Reached 5,000 customers.

How They Deliver

Product Sourcing

  • The cookstove is sourced from Okapi Trading Company, which is based in Uganda.
  • The LPG is produced from fossil fuels imported from Kenya, Tanzania and Saudi Arabia.
  • Canisters are imported from Allied East Africa factory in Kenya.
  • Pipes and regulators are imported from Thailand and Denmark.

Distribution

  • Wana Energy Solutions mainly uses microfranchising to distribute their product.
  • They recruit microentrepreneurs to become distributors, with a special focus on empowering women by turning them into salespeople.
  • Currently, they have 40 point of sale locations across five districts.
  • They also employ a delivery service to help achieve last mile distribution.

Affordability

  • The biggest problem normally associated with LPG as an alternative fuel source is the high upfront cost of purchasing equipment.
  • Wana Energy Solutions’ product package eliminates upfront costs entirely.
  • Customers need only pay 2000 UGX ($0.74 USD) a day for six months to secure ownership of the necessary equipment and accessories, which is a lot more affordable than purchasing everything upfront.

Financing

  • Self-financing in 2008.
  • Loan from E+Co in 2012.
  • Grants from the Uganda Investment Authority.

Scaling

  • Wana Energy Solutions seeks to scale to new regions in Uganda and eventually serve 20% of the Ugandan population.

 

SOCIAL IMPACT

  • Wana Energy Solutions is focused on reaching a wide target market within Uganda.
  • They hope to scale throughout urban and rural areas and eventually serve all of their target market of 7.5 million Ugandans.

 

Product

Description: Wana Energy Solutions’ product package comes with a variety of products and accessories that can be financed through their in-house system. A variety of products are offered, including different sizes of tanks and cookstoves, allowing for flexibility for each individual customer. Tanks are offered in 6 kg, 13kg, 45kg sizes (appropriate amounts of gas sold separately), and cookstoves come in single burner and double burner models. They also provide 1,000 kg tanks for businesses.

Cost Data

Product/Accessory  Price (UGX/USD)
6kg cylinder 55,000 / 19.25
13kg cylinder 95,000 / 33.28
45kg cylinder 350,000 / 122.60
6kg gas 45,000 / 15.77
13kg gas 95,000 / 33.28
45kg gas 270,000 / 94.58
Single burner stove 80,000 / 28.03
Double burner stove 140,000 / 49.04
Low pressure regulator 30,000 / 10.51
High pressure regulator 150,000 / 52.55
Cylinder adaptor 65,000 / 22.77
Hosepipe 10,000 / 3.51

Products:

family with stove wana

A mother and her family with a double burner cookstove model.

mom with stove wana

A woman with a single-burner cookstove model.

 More Information

Online Resources

Contact Information

Plot 212 Seguku off Entebbe Road
PO Box 31438
Kampala, Uganda+256 7767 04397

rwasirwa@waesol.com

snamulinda@waesol.com