South Africa

Project Objective: 

The major objective of this project is to improve the lives of those living in the townships.  Benefits include the following:

• Reduction of indoor pollution from the use of paraffin.
• Reducing the risk of fire (a common occurrence in informal settlements) through the reduced use of paraffin and kerosene.
• Extending work days and school days beyond sundown. More activities can be done at night such as adult literacy, student learning at night and economic activities like trade and handicrafts.

Furthermore, solar lighting contributes to conservation of non-renewable energy resources while reducing environmental impacts of it. At the same time solar lighting can contribute positively to livelihood improvement through employment and new innovative activities.

Number of Systems Required: 500 (microfinance)

Individuals Benefiting: ~3000

Context/History:

In 2006, visionary founder Dr. Dave Irvine-Halliday established the "Magnificent Seven" Pilot Project, where he carried out a small scale microfinance loan project for seven families in Tembisa in Johannesburg.  All repayments were made in 1 year or less.

In the spring/summer of 2007, a larger scale 52 home microcredit pilot project was established in Johannesburg and Cape Town. The South African Federation of the Urban Poor (FEDUP) was chosen to carry out the administration, including collection of the loans, while Dave arranged for the delivery of lighting systems and trained a representative in each community to install and trouble shoot the systems.

The community selection was made by our NGO partner FEDUP and they have a large percentage of members in the chosen communities. 2 settlements in Johannesburg, Tinasonke and  Protea South (in Soweto), and 2 settlements in Cape Town, Philippi and Kosovo were selected to participate. 

Communities normally spend R 15-30 per week (R 7 = US $1) per family on lighting (paraffin & candles). The 52 systems were sold at a cost of R 1,200 each and repayment on the systems is expected to be completed within a one year period.

Partners:

Established in 1991, the organization FEDUP is associated with Shack/Slum Dwellers International, an international network of federations of the urban poor who share ideas and experiences, and support one another in gaining access to adequate land, infrastructure and housing. One of the key components of FEDUP's activities is the formation of savings and credit groups. They issue a variety of loans including crisis/consumption and income generation loans. With FEDUP's system there is no fixed repayment schedule or instalments, but the only insistence is that there must be a daily repayment.

Confirmation of FEDUP's continued interest in delivering the microfinance administration with the expansion of the project is currently being assessed.