It’s commonly concluded that there is considerable potential in African solar street light market. First of all, Africa has 15% of the world's population, and about 90% of its rural population has no electricity supply, and many small streets in its cities have no street lights. Therefore, the lighting industry in most African countries is lacking and the technological level is relatively lower than its in other regions.
In recent years, Africa has been committed to the development of sustainable lighting solutions to seek effective solutions to the insufficient power consumption there. For instance, the Lighting Africa Charity and Development Program led by the United Nations is striving to provide energy-saving LED lighting to African users. The rapid development of urbanization in Africa has been bringing more and more business opportunities into the lighting market, particularly the solar lighting section. For example, the increasing economic dynamics in Africa in the last decade has provided impetus for the infrastructural construction there. Markets, stations, shopping malls, roads and other buildings has continuously promoted the demand for LED lighting to increase year by year.
As an important trade transit center in Africa, Kenya's economy has been developing rapidly and stably in recent years. At the same time, the Kenyan government has set up a goal that by the end of 2025, the electricity supply will cover 70% of its population,which will further promote Kenya's infrastructure, economic zones, industrial parks, and trade. It is particularly noteworthy that the construction of residential buildings and tourist resorts in this country is booming day by day. This increasing tendency has provoked the development of Kenya’s domestic demand for building materials, including indoor and outdoor lamps and lighting solutions. It is expected to become one of the global markets with more development potential for basic lighting and municipal lighting. Moreover, as LED lights, batteries, and solar panels become more affordable, coupled with innovative business plans, millions of households in Africa and elsewhere will be able to ditch kerosene and incandescent lamps for Instead, use more technologically advanced lighting fixtures.
Based on Mistei Lighting’s business experience and analysis in the international market, we think the need for the following products is expected to occur in Africa.
Types of local lighting requirements:
1. Off-grid solar lighting products;
2. Indoor small portable lamp;
3. 1W-5W solar LED bulbs;
4. Emergency lights;
5. Outdoor commercial LED lighting system;
6. Primary household lamps (non-solar);
7. LED garden lights, LED street lights and commercial lighting.
When solar lighting business players enter the African market, Mistei Lighting should follow the local flow to deal with business. For instance, Mistei suggests a local market pricing strategy. The price of lamps and lanterns sold in Kenya is 1.5 times that of China:
Mombasa, the second largest city in Kenya, launched a road lighting replacement project. Among them, 500 high-pressure sodium street lamps will be replaced with LED lighting in the urban old city, and 5 kilometers of lighting cables will also be upgraded. The total cost is 45 million shillings, which is equivalent to 3,051,000 yuan RMB (about $442,180 US dollars).
The total cost of lighting replacement projects in other parts of the urban area is 1.2 billion shillings, equivalent to 81,360,000 yuan RMB (about $11,791,300 US dollars).
(A 18W energy-saving light bulb is priced at 22 yuan in Kenya, and 10 yuan in China, which is significantly higher than the Chinese market).
As a manufacturer in the solar lighting business, Mistei Lighting believes that Africa will become the most important market for our business. There is great potential for us to find. Nevertheless, intense competition will come along with these opportunities.