By Simon BishopOne way of categorising the many challenges faced by people and organisations trying to sell improved cookstoves - ones that significantly reduce smoke and fuel use - at scale is the 'Three A's' - Awareness, Availability and Affordability:
Awareness - Often going to a village in India and saying "There is this thing called Indoor Air Pollution (IAP)" is like going there in 1984 and saying "there is this thing called AIDS". Almost no one understands the health risks or that improved cookstoves represent a solution.
Availability - This covers the entire supply-chain, from R&D, manufacturing, marketing, selling, delivering to after-sales service; all have their challenges.
Affordability - This relates to people's ability to be able to afford a stove and if they cannot, then perhaps to the provision of microfinance so that they can pay in installments over several months, thus making the purchase more viable.
This last challenge got a boost this week from a report published by Monitor Inclusive Markets, 'Stretching the Fabric of MFI Networks Report'. It outlines the challenges of trying to sell non-financial products - like solar lanterns, water purifiers and stoves - to members of microfinance institutions (MFIs).
The report makes it clear that such a route to market is no silver bullet to the 'Affordability' challenge. In fact, it says attempts to-date do it (the report contains four useful case studies) have had decidedly mixed results.
However, by describing pitfalls of past attempts and by offering five different conceptual models on how product manufacturer-MFI partnerships can work, the report is incredibly helpful. **
We at Shell Foundation are currently working with several MFIs and stove manufacturers to prove such partnerships are possible.
If we achieve this then it will be a significant step forward in cracking the 'Affordability' nut. This is part of our wider Breathing Space programme, which is also trying to crack the other two big 'A's'.
**Note: It is a follow on from Monitor's excellent 2009 report 'Emerging Markets, emerging models', which looks at more than 275 market-based solutions to poverty and environmental challenges in India.
Simon Bishop is Head of Policy and Communications Shell Foundation.
