[Music] [Applause]
[Applause]
[Applause] for the past six years I’ve been
for the past six years I’ve been
for the past six years I’ve been building a company called peg Africa we
building a company called peg Africa we
building a company called peg Africa we sell solar home lighting systems to
sell solar home lighting systems to
sell solar home lighting systems to people who live in in off-grid villages
people who live in in off-grid villages
people who live in in off-grid villages in Ghana and now in Cote d’Ivoire it’s
in Ghana and now in Cote d’Ivoire it’s
in Ghana and now in Cote d’Ivoire it’s my passion it’s my in my dream for a
my passion it’s my in my dream for a
my passion it’s my in my dream for a long time to do something like this and
long time to do something like this and
long time to do something like this and I wake up every day excited about it and
I wake up every day excited about it and
I wake up every day excited about it and I wanted to tell you a little bit about
I wanted to tell you a little bit about
I wanted to tell you a little bit about what we do and our journey and some
what we do and our journey and some
what we do and our journey and some things that learned along the way one of
things that learned along the way one of
things that learned along the way one of the things that that I’m most proud of
the things that that I’m most proud of
the things that that I’m most proud of with this company might sound a little
with this company might sound a little
with this company might sound a little bit strange I’m most proud I would say
bit strange I’m most proud I would say
bit strange I’m most proud I would say of the fact that they were actually a
of the fact that they were actually a
of the fact that they were actually a for-profit business we’re not an NGO
for-profit business we’re not an NGO
for-profit business we’re not an NGO we’re a company and the people that we
we’re a company and the people that we
we’re a company and the people that we sell to they live in tiny little
sell to they live in tiny little
sell to they live in tiny little villages far far away they make on
villages far far away they make on
villages far far away they make on average probably one to six dollars a
average probably one to six dollars a
average probably one to six dollars a day and a lot of people say how can you
day and a lot of people say how can you
day and a lot of people say how can you be a for-profit company focused on on
be a for-profit company focused on on
be a for-profit company focused on on those kind of customers and some people
those kind of customers and some people
those kind of customers and some people say it in a way where they’re appalled
say it in a way where they’re appalled
say it in a way where they’re appalled and some people say in a way like that
and some people say in a way like that
and some people say in a way like that people don’t have money how can you be a
people don’t have money how can you be a
people don’t have money how can you be a company focused on them but I think that
company focused on them but I think that
company focused on them but I think that in some situations it’s actually a way
in some situations it’s actually a way
in some situations it’s actually a way way better way to help people my goal is
way better way to help people my goal is
way better way to help people my goal is not to make money the goal is to help
not to make money the goal is to help
not to make money the goal is to help people if you’re a for-profit oh okay
people if you’re a for-profit oh okay
people if you’re a for-profit oh okay this goes fast you bring some some
this goes fast you bring some some
this goes fast you bring some some things to the table that are a lot more
things to the table that are a lot more
things to the table that are a lot more difficult if you’re a charity something
difficult if you’re a charity something
difficult if you’re a charity something like that first of all empowerment if
like that first of all empowerment if
like that first of all empowerment if you are a company rather than a charity
you are a company rather than a charity
you are a company rather than a charity people don’t want what you’re providing
people don’t want what you’re providing
people don’t want what you’re providing them they’ll stop buying it and you’ll
them they’ll stop buying it and you’ll
them they’ll stop buying it and you’ll go out of business
go out of business
go out of business second is sustainability people have to
second is sustainability people have to
second is sustainability people have to pay for what you’re offering
pay for what you’re offering
pay for what you’re offering then they’ll value it and I’ll probably
then they’ll value it and I’ll probably
then they’ll value it and I’ll probably make a lot more use out of it and
make a lot more use out of it and
make a lot more use out of it and finally scalability the problems that
finally scalability the problems that
finally scalability the problems that need to be solved in this world and the
need to be solved in this world and the
need to be solved in this world and the problems that we’re trying to solve are
problems that we’re trying to solve are
problems that we’re trying to solve are so big there’s so many people that that
so big there’s so many people that that
so big there’s so many people that that need support in these ways that oh the
need support in these ways that oh the
need support in these ways that oh the charity money available in the world is
charity money available in the world is
charity money available in the world is good enough couldn’t get anywhere near
good enough couldn’t get anywhere near
good enough couldn’t get anywhere near it but if you can figure out a way to
it but if you can figure out a way to
it but if you can figure out a way to find a business model where you’re
find a business model where you’re
find a business model where you’re actually
actually
actually making a profit and generating a return
making a profit and generating a return
making a profit and generating a return on capital it goes back to investors
on capital it goes back to investors
on capital it goes back to investors there are huge amounts of money out
there are huge amounts of money out
there are huge amounts of money out there to help you grow and you can
there to help you grow and you can
there to help you grow and you can really help reach much much larger
really help reach much much larger
really help reach much much larger groups of people when I think about this
groups of people when I think about this
groups of people when I think about this model there there are two different main
model there there are two different main
model there there are two different main examples that I think of and at least
examples that I think of and at least
examples that I think of and at least one of them you would never really
one of them you would never really
one of them you would never really consider a social enterprise I think of
consider a social enterprise I think of
consider a social enterprise I think of mobile phones and microfinance mobile
mobile phones and microfinance mobile
mobile phones and microfinance mobile phone industry definitely not social
phone industry definitely not social
phone industry definitely not social they’re pretty much just in it for the
they’re pretty much just in it for the
they’re pretty much just in it for the money but about 15 years ago I lived for
money but about 15 years ago I lived for
money but about 15 years ago I lived for two years in a tiny little village in
two years in a tiny little village in
two years in a tiny little village in Senegal that was off-grid and to get to
Senegal that was off-grid and to get to
Senegal that was off-grid and to get to a phone I had to bicycle ten kilometres
a phone I had to bicycle ten kilometres
a phone I had to bicycle ten kilometres into town and the change that that has
into town and the change that that has
into town and the change that that has come from from mobile phones is just
come from from mobile phones is just
come from from mobile phones is just incredible microfinance is definitely
incredible microfinance is definitely
incredible microfinance is definitely controversial and definitely the
controversial and definitely the
controversial and definitely the interest rates can be high but if you
interest rates can be high but if you
interest rates can be high but if you compare it to informal moneylenders it’s
compare it to informal moneylenders it’s
compare it to informal moneylenders it’s a step change and I think of these two
a step change and I think of these two
a step change and I think of these two innovations as possibly having brought
innovations as possibly having brought
innovations as possibly having brought the most change to Africa in the past 20
the most change to Africa in the past 20
the most change to Africa in the past 20 years of anything I can think of and
years of anything I can think of and
years of anything I can think of and what they do and the reason why they’re
what they do and the reason why they’re
what they do and the reason why they’re able to be successful and they’re able
able to be successful and they’re able
able to be successful and they’re able to be profitable to every to scale is
to be profitable to every to scale is
to be profitable to every to scale is because they do all this by giving
because they do all this by giving
because they do all this by giving people something better than what they
people something better than what they
people something better than what they had before and giving to them cheaper
had before and giving to them cheaper
had before and giving to them cheaper than they were paying previously so I
than they were paying previously so I
than they were paying previously so I started out as a nonprofit guy I was one
started out as a nonprofit guy I was one
started out as a nonprofit guy I was one of those people I would just wanted you
of those people I would just wanted you
of those people I would just wanted you to do good I wanted to figure out how to
to do good I wanted to figure out how to
to do good I wanted to figure out how to be useful I came from a lucky background
be useful I came from a lucky background
be useful I came from a lucky background and I wanted to give back I decided to
and I wanted to give back I decided to
and I wanted to give back I decided to join the Peace Corps
join the Peace Corps
join the Peace Corps move to a tiny little village in Senegal
move to a tiny little village in Senegal
move to a tiny little village in Senegal when I was 14 years old and talked about
when I was 14 years old and talked about
when I was 14 years old and talked about it for eight years and finally actually
it for eight years and finally actually
it for eight years and finally actually did that when I graduated from college
did that when I graduated from college
did that when I graduated from college and eventually got to where I worked my
and eventually got to where I worked my
and eventually got to where I worked my way up and I had a job at the UN but as
way up and I had a job at the UN but as
way up and I had a job at the UN but as I got further into the big machine of of
I got further into the big machine of of
I got further into the big machine of of that International Development thing I
that International Development thing I
that International Development thing I just did not feel useful I felt like I
just did not feel useful I felt like I
just did not feel useful I felt like I was doing research for policies that I
was doing research for policies that I
was doing research for policies that I wasn’t sure we’re really gonna affect
wasn’t sure we’re really gonna affect
wasn’t sure we’re really gonna affect anybody’s lives and I started hearing
anybody’s lives and I started hearing
anybody’s lives and I started hearing about these models that seemed
about these models that seemed
about these models that seemed they were really directly bringing
they were really directly bringing
they were really directly bringing benefits to people and they weren’t
benefits to people and they weren’t
benefits to people and they weren’t wasteful and I wanted to do something
wasteful and I wanted to do something
wasteful and I wanted to do something like that
like that
like that I was trying to find some way the
I was trying to find some way the
I was trying to find some way the problem that I could help solve in a way
problem that I could help solve in a way
problem that I could help solve in a way that was was better and cheaper and so I
that was was better and cheaper and so I
that was was better and cheaper and so I quit my job at the UN I didn’t know
quit my job at the UN I didn’t know
quit my job at the UN I didn’t know anything about business at the time so I
anything about business at the time so I
anything about business at the time so I went to business school and a few years
went to business school and a few years
went to business school and a few years later I met this guy that’s my
later I met this guy that’s my
later I met this guy that’s my co-founder Hugh Whelan and that’s our
co-founder Hugh Whelan and that’s our
co-founder Hugh Whelan and that’s our very first company and he had the idea
very first company and he had the idea
very first company and he had the idea of of trying to work on a problem that
of of trying to work on a problem that
of of trying to work on a problem that is a major arbitrage opportunity a major
is a major arbitrage opportunity a major
is a major arbitrage opportunity a major situation where people are paying way
situation where people are paying way
situation where people are paying way too much for something that’s really not
too much for something that’s really not
too much for something that’s really not good
good
good and that problem is the dark if I have
and that problem is the dark if I have
and that problem is the dark if I have been really smart I would have had them
been really smart I would have had them
been really smart I would have had them switch off the lights has anybody did
switch off the lights has anybody did
switch off the lights has anybody did anybody grow up in this room in an
anybody grow up in this room in an
anybody grow up in this room in an off-grid place or has anybody spent a
off-grid place or has anybody spent a
off-grid place or has anybody spent a significant amount of time in a place
significant amount of time in a place
significant amount of time in a place off-grid there’s no electricity yeah so
off-grid there’s no electricity yeah so
off-grid there’s no electricity yeah so as I said I lived in a village with no
as I said I lived in a village with no
as I said I lived in a village with no electricity for two years and it was
electricity for two years and it was
electricity for two years and it was beautiful and it was peaceful and at
beautiful and it was peaceful and at
beautiful and it was peaceful and at night it was lovely to see the stars but
night it was lovely to see the stars but
night it was lovely to see the stars but it’s really tough if you think about you
it’s really tough if you think about you
it’s really tough if you think about you know especially this part of the world
know especially this part of the world
know especially this part of the world you know it gets dark every day of the
you know it gets dark every day of the
you know it gets dark every day of the year around 6:00 6:30 p.m. and after
year around 6:00 6:30 p.m. and after
year around 6:00 6:30 p.m. and after it’s dark if you don’t have electricity
it’s dark if you don’t have electricity
it’s dark if you don’t have electricity you know you maybe you have a kerosene
you know you maybe you have a kerosene
you know you maybe you have a kerosene lamp you can get around your house but
lamp you can get around your house but
lamp you can get around your house but you can’t really read you can’t study
you can’t really read you can’t study
you can’t really read you can’t study you can’t cook you can’t work if you’re
you can’t cook you can’t work if you’re
you can’t cook you can’t work if you’re you know family maybe has one flashlight
you know family maybe has one flashlight
you know family maybe has one flashlight if you’re a kid you want to study and
if you’re a kid you want to study and
if you’re a kid you want to study and then your mom takes the flashlight so
then your mom takes the flashlight so
then your mom takes the flashlight so she can cook and you can’t study anymore
she can cook and you can’t study anymore
she can cook and you can’t study anymore if you have a phone you have to go
if you have a phone you have to go
if you have a phone you have to go kilometres into town to charge it so you
kilometres into town to charge it so you
kilometres into town to charge it so you can only do that a couple times a week
can only do that a couple times a week
can only do that a couple times a week and you have to buy batteries all the
and you have to buy batteries all the
and you have to buy batteries all the time and you end up paying for this
time and you end up paying for this
time and you end up paying for this terrible amount of level of service a
terrible amount of level of service a
terrible amount of level of service a lot more than somebody who’s connected
lot more than somebody who’s connected
lot more than somebody who’s connected to the grid and technology has the
to the grid and technology has the
to the grid and technology has the potential to really change that and this
potential to really change that and this
potential to really change that and this is what we set out to try to help with a
is what we set out to try to help with a
is what we set out to try to help with a solar lighting system this is a system
solar lighting system this is a system
solar lighting system this is a system that we currently sell I have a demo
that we currently sell I have a demo
that we currently sell I have a demo I’ll show you guys afterwards if
I’ll show you guys afterwards if
I’ll show you guys afterwards if anybody’s interested in the cocktail
anybody’s interested in the cocktail
anybody’s interested in the cocktail we’ve got three bright lights which
we’ve got three bright lights which
we’ve got three bright lights which light up a house
light up a house
light up a house inside and out so everybody can do
inside and out so everybody can do
inside and out so everybody can do everything at the same time it includes
everything at the same time it includes
everything at the same time it includes a solar charge radio flashlight and a
a solar charge radio flashlight and a
a solar charge radio flashlight and a phone charger so you can pretty much
phone charger so you can pretty much
phone charger so you can pretty much take care of all your needs we now have
take care of all your needs we now have
take care of all your needs we now have bigger systems even that have TVs and it
bigger systems even that have TVs and it
bigger systems even that have TVs and it costs way way less than what people were
costs way way less than what people were
costs way way less than what people were paying for kerosene and batteries and
paying for kerosene and batteries and
paying for kerosene and batteries and phone charging cause so much less I
phone charging cause so much less I
phone charging cause so much less I actually made a chart that the clicker
actually made a chart that the clicker
actually made a chart that the clicker might not work on if you think about
might not work on if you think about
might not work on if you think about somebody who’s buying kerosene and
somebody who’s buying kerosene and
somebody who’s buying kerosene and batteries they spend maybe four dollars
batteries they spend maybe four dollars
batteries they spend maybe four dollars weekly means they’re spending about $200
weekly means they’re spending about $200
weekly means they’re spending about $200 a year and they got to replace the
a year and they got to replace the
a year and they got to replace the radios in the lamps and flashlights
radios in the lamps and flashlights
radios in the lamps and flashlights they’re spending another $50 it’s around
they’re spending another $50 it’s around
they’re spending another $50 it’s around two hundred and sixty dollars a year if
two hundred and sixty dollars a year if
two hundred and sixty dollars a year if you think about that over five years
you think about that over five years
you think about that over five years that’s about thirteen hundred dollars
that’s about thirteen hundred dollars
that’s about thirteen hundred dollars with the solar home system pay about two
with the solar home system pay about two
with the solar home system pay about two hundred and fifty dollars and that’s all
hundred and fifty dollars and that’s all
hundred and fifty dollars and that’s all you pay you’re done so they save over a
you pay you’re done so they save over a
you pay you’re done so they save over a thousand dollars on this thing that’s
thousand dollars on this thing that’s
thousand dollars on this thing that’s way way better so why doesn’t everybody
way way better so why doesn’t everybody
way way better so why doesn’t everybody have one well the big problem is upfront
have one well the big problem is upfront
have one well the big problem is upfront cost two hundred and fifty dollars is a
cost two hundred and fifty dollars is a
cost two hundred and fifty dollars is a heck of a lot of money for somebody who
heck of a lot of money for somebody who
heck of a lot of money for somebody who makes one to six dollars a day either
makes one to six dollars a day either
makes one to six dollars a day either they don’t have that money or they do
they don’t have that money or they do
they don’t have that money or they do but they don’t really trust something
but they don’t really trust something
but they don’t really trust something like this very much because there’s a
like this very much because there’s a
like this very much because there’s a lot of Chinese junk out there and it’s
lot of Chinese junk out there and it’s
lot of Chinese junk out there and it’s too big an investment to spend all at
too big an investment to spend all at
too big an investment to spend all at once so you have to figure out a way to
once so you have to figure out a way to
once so you have to figure out a way to give it to them so they can pay the same
give it to them so they can pay the same
give it to them so they can pay the same way they were paying for kerosene over
way they were paying for kerosene over
way they were paying for kerosene over time if you can give it to them on
time if you can give it to them on
time if you can give it to them on credit where they pay a deposit and then
credit where they pay a deposit and then
credit where they pay a deposit and then they pay a daily rate it can add up to
they pay a daily rate it can add up to
they pay a daily rate it can add up to exactly the same amount of money paid
exactly the same amount of money paid
exactly the same amount of money paid over a year but suddenly it becomes much
over a year but suddenly it becomes much
over a year but suddenly it becomes much more affordable and then for the rest of
more affordable and then for the rest of
more affordable and then for the rest of the five years that the products gonna
the five years that the products gonna
the five years that the products gonna last you don’t have to pay any money at
last you don’t have to pay any money at
last you don’t have to pay any money at all so this is what we were thinking
all so this is what we were thinking
all so this is what we were thinking about and this is what we really wanted
about and this is what we really wanted
about and this is what we really wanted to do so we tried to do this initially
to do so we tried to do this initially
to do so we tried to do this initially with microfinance banks but these
with microfinance banks but these
with microfinance banks but these customers are really difficult for a
customers are really difficult for a
customers are really difficult for a microfinance bank or a regular Bank any
microfinance bank or a regular Bank any
microfinance bank or a regular Bank any kind of microfinance Bank because not
kind of microfinance Bank because not
kind of microfinance Bank because not that they’re necessarily bad payers but
that they’re necessarily bad payers but
that they’re necessarily bad payers but it’s really hard to tell they live way
it’s really hard to tell they live way
it’s really hard to tell they live way out in these villages they don’t have a
out in these villages they don’t have a
out in these villages they don’t have a credit rating because they’ve never done
credit rating because they’ve never done
credit rating because they’ve never done electronic transactions and they don’t
electronic transactions and they don’t
electronic transactions and they don’t have any collateral that you’d use to
have any collateral that you’d use to
have any collateral that you’d use to take away if they don’t pay so how do
take away if they don’t pay so how do
take away if they don’t pay so how do you possibly
you possibly
you possibly sell to them on credit well there’s this
sell to them on credit well there’s this
sell to them on credit well there’s this new mechanism called pay-as-you-go solar
new mechanism called pay-as-you-go solar
new mechanism called pay-as-you-go solar that we’ve been using for the past three
that we’ve been using for the past three
that we’ve been using for the past three years starting in East Africa and we are
years starting in East Africa and we are
years starting in East Africa and we are one of the first ones to do it in West
one of the first ones to do it in West
one of the first ones to do it in West Africa and what it has is a metered
Africa and what it has is a metered
Africa and what it has is a metered system where inside the device there’s a
system where inside the device there’s a
system where inside the device there’s a meter they buy credit on the meter by
meter they buy credit on the meter by
meter they buy credit on the meter by paying off their loan and if they stop
paying off their loan and if they stop
paying off their loan and if they stop buying credit the device runs down and
buying credit the device runs down and
buying credit the device runs down and it stops working so the system actually
it stops working so the system actually
it stops working so the system actually acts as own collateral oh yeah the
acts as own collateral oh yeah the
acts as own collateral oh yeah the second major innovation is mobile money
second major innovation is mobile money
second major innovation is mobile money a lot of you guys have heard of that I’m
a lot of you guys have heard of that I’m
a lot of you guys have heard of that I’m sure but it’s basically if you haven’t
sure but it’s basically if you haven’t
sure but it’s basically if you haven’t it’s a bank account tied to your mobile
it’s a bank account tied to your mobile
it’s a bank account tied to your mobile phone number so people can make
phone number so people can make
phone number so people can make electronic transactions and send money
electronic transactions and send money
electronic transactions and send money to friends relatives or service
to friends relatives or service
to friends relatives or service providers like us that means we don’t
providers like us that means we don’t
providers like us that means we don’t have to go collect all the money and it
have to go collect all the money and it
have to go collect all the money and it means there’s an electronic record of
means there’s an electronic record of
means there’s an electronic record of everything people pay so now not only
everything people pay so now not only
everything people pay so now not only are we bringing these people light we’re
are we bringing these people light we’re
are we bringing these people light we’re bringing them Financial Inclusion
bringing them Financial Inclusion
bringing them Financial Inclusion because after they’ve paid off the
because after they’ve paid off the
because after they’ve paid off the device we’ve got collateral sitting in
device we’ve got collateral sitting in
device we’ve got collateral sitting in their house for another five years a
their house for another five years a
their house for another five years a device we could switch off and we’ve got
device we could switch off and we’ve got
device we could switch off and we’ve got a year of payment transactions so now if
a year of payment transactions so now if
a year of payment transactions so now if they need other things on credit there’s
they need other things on credit there’s
they need other things on credit there’s suddenly a very good customer if they’ve
suddenly a very good customer if they’ve
suddenly a very good customer if they’ve been a good payer we sell them clean
been a good payer we sell them clean
been a good payer we sell them clean cookstoves smart phones and solar TVs as
cookstoves smart phones and solar TVs as
cookstoves smart phones and solar TVs as add-on products afterwards we also give
add-on products afterwards we also give
add-on products afterwards we also give free micro insurance to all of our good
free micro insurance to all of our good
free micro insurance to all of our good payers so that they don’t get sick and
payers so that they don’t get sick and
payers so that they don’t get sick and have to go to the hospital can’t afford
have to go to the hospital can’t afford
have to go to the hospital can’t afford it I was gonna give a few tips about the
it I was gonna give a few tips about the
it I was gonna give a few tips about the journey and the difficulties but it
journey and the difficulties but it
journey and the difficulties but it looks like we’re very very quickly some
looks like we’re very very quickly some
looks like we’re very very quickly some of the things that I say to people that
of the things that I say to people that
of the things that I say to people that are interested in doing this kind of
are interested in doing this kind of
are interested in doing this kind of thing it’s been a really really long and
thing it’s been a really really long and
thing it’s been a really really long and and difficult journey I decided I wanted
and difficult journey I decided I wanted
and difficult journey I decided I wanted to do social enterprise about ten years
to do social enterprise about ten years
to do social enterprise about ten years ago and I went to school and then I
ago and I went to school and then I
ago and I went to school and then I spent two years working for a startup
spent two years working for a startup
spent two years working for a startup that didn’t start up who I didn’t get
that didn’t start up who I didn’t get
that didn’t start up who I didn’t get along at all with the founder I didn’t
along at all with the founder I didn’t
along at all with the founder I didn’t know if I was ever gonna get anywhere I
know if I was ever gonna get anywhere I
know if I was ever gonna get anywhere I came and joined Hugh in Ghana took a
came and joined Hugh in Ghana took a
came and joined Hugh in Ghana took a major risk on that
major risk on that
major risk on that we spent two years changing business
we spent two years changing business
we spent two years changing business models about four times and changing
models about four times and changing
models about four times and changing suppliers about five times we had every
suppliers about five times we had every
suppliers about five times we had every crisis in the book we had investors who
crisis in the book we had investors who
crisis in the book we had investors who said our our investment decision has
said our our investment decision has
said our our investment decision has been postponed by about four months and
been postponed by about four months and
been postponed by about four months and our money ran out after about one month
our money ran out after about one month
our money ran out after about one month so we had to stop getting paid for about
so we had to stop getting paid for about
so we had to stop getting paid for about six months and just to keep the doors
six months and just to keep the doors
six months and just to keep the doors open even without knowing whether they
open even without knowing whether they
open even without knowing whether they would say yes and you know we wouldn’t
would say yes and you know we wouldn’t
would say yes and you know we wouldn’t have to shut it down anyway it’s been a
have to shut it down anyway it’s been a
have to shut it down anyway it’s been a really really interesting journey with
really really interesting journey with
really really interesting journey with many many failures but we’ve now given
many many failures but we’ve now given
many many failures but we’ve now given light to about 150 thousand people and
light to about 150 thousand people and
light to about 150 thousand people and employed about 400 thank you and yeah
employed about 400 thank you and yeah
employed about 400 thank you and yeah it’s been great and I feel really
it’s been great and I feel really
it’s been great and I feel really honored to be here
honored to be here
honored to be here [Applause]
”
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