Tanzania - Startup under 3 years old

Describe your project or startup in a few words

RUMO Energy offers Rent-to-Own solar lamps for rural households through innovative distribution network of local entrepreneur and remote monitoring technology This affordable and clean energy solution promotes prosperity and empowerment to rural community

01.01 Describe your startup in more detail

RUMO Energy is pioneering an innovative Rent-to-Own (RTO) busines model to enable rural Tanzanian households at the base of the pyramid to affordably access and ultimately own solar lamps that enable them to have access to light and charge their phones, thereby addressing prevalent financial constraints. Distinctively, their strategy collaborates with existing retail outlets in rural areas, predominantly run by women. This collaboration enhances the energy supply chain and establishes a sustainable distribution network for solar energy in these underserved regions. In contrast to the traditional Rental and PAYGO models employed by competitors, which frequently ensnare rural households in debt, RUMO’s affordable solution at $0.2/day promotes community prosperity. Notably, this rental fee is equivalently priced to or slightly lower than what households typically spend on kerosene, candles, and phone charging. However, RUMO offers longer-lasting illumination and clean energy

01.02 What is the main problem you are trying to solve?

600 million people lack access to electricity in Africa, most of them in Sub Saharan Africa (Africa Energy Outlook 2022). The CO2 gas emission is growing at 3.6% annually and it is projected to increase by 40% in 2030. Still Premature deaths attributed to households’ air pollution from dim-kerosene lamps, firewood, and charcoal is at high pace. 63% percent of child deaths in Tanzania are attributed to household air pollution (Tanzania Country Environmental Analysis 2019). Africa is home to 60% of the best solar resources globally, yet only 1% of installed solar panel capacity (Africa Energy Outlook 2022). Solar PV is already the cheapest source of power but still not yet accessible to rural people living under $2 per day. The challenge is distributing to the people who need them most. 91% clean energy distributors in Tanzania are male. Out of them 80% are located in urbans. while 75% of off grid communities are living in rural areasl RUMO is in mission to adress thi gap.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

User of our lanterns can saves 0.1$ per day by using solar lantern in lighting and charging all families mobile phones and radio. The saved capital can be used to purchase other necessities for the family. User improves the quality of life by using solar lantern instead of dim kerosene. Our distribution model in partnership with community entrepreneurs increase the accessibility of clean energy to the end users. Entrpreneurs make entra income through commision by distributing lanterns to their community. We mosts work with women entrpreneurs at 70% compare to male entrpreneurs. This also empowers womens in income generating activities.

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

Our target customers are households and street vendors in off-grid rural areas. About 75% Sub Saharan Africa population approximately 500 million lives in off-grid rural areas (Africa Energy Outlook 2022). Tanzania as our market niche records the same rate whereby, 75% of populations live in off-grid rural areas. Most of our target customers are living under USD2 per day. They light their homes by using dim kerosene and candles which cost them an average of USD0.2 per day. Our target customers charge their mobile phones (Father and mother) in the street vendor at a price of USD0.1 per phone. Our target market purchases basic needs on a cash basis, they are not used to credit schemes because they don’t have stable income.

01.05 When was your company established?

2021-12-15

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

3

01.08 Among the other owners, how many are female?

0

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

Meet Our team has relevant skills and experience. Patrick Mkoma, CEO- RUMO Energy. Has BA in Project Planning Management and Community Development – University of Dodoma. He has served as; Regional Hubs Revenue Manager at JAZA Energy ltd; Marketing Specialist and Regional Sales Consultant at WASSHA Corporate Company; and Field Sales Supervisor at Off grid Electric Tanzania. Samuel Mshana, CTO-RUMO Energy. Has BSc in Civil Engineering – Dar es Salaam Institute of Technologies and Diploma in Renewable Energy. He has served as; Expansion Manager & Construction Engineer at JAZA Energy ltd. Sefania Amnon, COO – RUMO Energy. Has BA in Business Administration from The University of Dodoma. He has served as; Agent Care Supervisor & Regional Manager at AZURI Technologies Tanzania ltd; Heri Marco, CIF – RUMO Energy. Has Master in International Business and BA in Economics and Statistics. Has served as Venture Builder and Director at Research & Development Network; Economist at President's

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://rumoenergy.com/

01.11 Which industry best describes your project?

a) Energy (equipment, services, sustainable energy and fuel)

02.01.01 My startup contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification for my startup

This is by reducing the energy poverty to 3000 households and Improve income to over 100 Community Entrepreneurs under RUMO Energy supply chain modal.

02.02.01 My startup contributes to the Zero hunger goal

3

02.02.02 Zero hunger - Justification for my startup

N/A

02.03.01 My startup contributes to the Good health and well-being goal

6

02.03.02 Good health and well-being - Justification for my startup

Premature deaths attributed to households’ air pollution from dim-kerosene lamps, firewood, and charcoal is at high pace. 63% percent of child deaths in Tanzania are attributed to household air pollution (Tanzania Country Environmental Analysis 2019). RUMO is is improving offering a clean solar lantyern for home use to replace dim kerosine and candles which produce smokes which causes air caused .

02.04.01 My startup contributes to the Quality education goal

7 - Strongly Agree

02.04.02 Quality education - Justification for my startup

RUMO is Improving learning environment of to over thousands of users in rural areas. School children in secondary are able to study in extra time during using the solar lantern with brighter light. This improvement their class perfomance.

02.05.01 My startup contributes to the Gender equality goal

6

02.05.02 Gender equality - Justification for my startup

80% of our distributors agents are women entrpreneurs in rural areas. These women entrpreneurs own small bussines of shops or booth. We empower them through recruitments training and give them technology to distribute the lamps. They are most trusted, champions and save their community. they also make income through commision from distrubuting lantern. This help them and their families.

02.06.01 My startup contributes to the Clean water and sanitation goal

1 - Strongly Disagree

02.06.02 Clean water and sanitation - Justification for my startup

N/A

02.07.01 My startup contributes to the Affordable and clean energy goal

7 - Strongly Agree

02.07.02 Affordable and clean energy - Justification for my startup

RUMO energy is using an innovative modal to ensure equal distribution to the people that need the most in offgrid rural areas. The model ensure easy accebility and affordability through flexible daily payment of only 500Tshs at near by agent until they own their lantern. This modal is customize to encreases the adoption and ensures energy is accessible to all.

02.08.01 My startup contributes to the Decent work and economic growth

6

02.08.02 Decent work and economic growth - Justification for my startup

RUMO Enrgy is creating jobs to local entrprenuers who distribute solar lanterns, It alsoprovides direct eployment to youth. Both these promotes employment and the economic empowerment.

02.09.01 My startup contributes to the Industry innovation and infrastructure

2

02.09.02 Industry innovation and infrastructure - Justification for my startup

N/A

02.10.01 My startup contributes to the Reduced inequalities goal

1 - Strongly Disagree

02.10.02 Reduced inequalities - Justification for my startup

N/A

02.11.01 My startup contributes to the Sustainable cities and communities goal

1 - Strongly Disagree

02.11.02 Sustainable cities and communities - Justification for my startup

N/A

02.12.01 My startup contributes to the Responsible consumption and production goal

1 - Strongly Disagree

02.12.02 Responsible consumption and production - Justification for my startup

N/A

02.13.01 My startup contributes to the Climate action goal

1 - Strongly Disagree

02.13.02 Climate action - Justification for my startup

CO2e emission is growing at 3.6% annually and it is projected to increase by 40% in 2030. One of the source is from households’ air pollution from dim-kerosene lamps, firewood, and charcoal. About 3-30 litres of Kerosene use per Household for lighting per month 1 Litre of Kerosene produce 2.5kg of CO2e (Lighting Africa 2010) By selling single lantern in a household we help to take out 7.5 kg of Co2 emmision in the air. The increasing the adoption of use in clean soalr lanterns helps to reduce the household air pollution.

02.14.01 My startup contributes to the Life below water goal

1 - Strongly Disagree

02.14.02 Life below water - Justification for my startup

N/A

02.15.01 My startup contributes to the Life on land goal

1 - Strongly Disagree

02.15.02 Life on land - Justification for my startup

N/A

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

1 - Strongly Disagree

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

N/A

02.17.01 My startup contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification for my startup

N/A

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

2

06.02 The product/service represents an entirely new type of product/service.

5

06.03 The product/service could be described as a new technology.

7 - Strongly Agree

06.04 The product/service is an improvement on an existing product or service.

5

06.05 The product/service could be described as an extension of a range of products or services.

3

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

1 - Strongly Disagree

06.07 The product/service is a new version of an old product/service.

5

06.08 Justification for my startup

RUMO Energy is building both software and products to address the distribution gap of clean energy in off grid rural areas. Therefore, apart from rent to own mobile payment technology and lanterns, RUMO Energy is building equal distribution system to ensure the accessibility of clean energy to people who need mostly. Software: Rent to own mobile payment technology (Web, Android and USSD) Rent to own mobile payment technology provide flexible and debt free payment plan to enable user pay and rent solar lantern on daily basis and later own it automatically after reaching minimum point needed for ownership. Our rent to own model provide flexible payment plan to fit income or cash flow of people living under $2 per day without keeping them into debts that kept them in poverty cycle Products: Customized Solar Lanterns RUMO Energy designs and customizes solar products to fit rural needs in terms of price, income, durability and usability.

06.09 Competitive Analysis

We have two competitive edges that differentiate us with other players. Our rent to own (RTO) financing model delivers value for money to customers and gives us cash every day. Our financing model helps us to keep customers out of debts and maintain good relationships compared to loan based, PAYGO model. Our distribution model in partnership with community entrepreneurs increases the income in the supply chain and empowers rural entrepreneurs to own the distribution. Our partnership model increases efficiency because the end users are served with entrepreneurs within their community.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?

Yes,