i

AP P ROAC H TO D E S I G N I N G D E L IV E RY
M O D E LS O F M O D E R N E N E RGY CO O K I N G
S E RV I C E S I N TAN ZAN IA

MECS-TRIID Final Project Report

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Modern Energy
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MEC - TRIID FINAL PROJECT

Project Name:
Approach to Designing Delivery
Models of Modern Energy Cooking
Services in Tanzania (ADD-MECS-Ta)

Organisation Name:
TaTEDO – Centre for Sustainable Energy Services

Contacts
Estomih N. Sawe
TaTEDO, P. O. Box 32794, Dar es Salaam, Tanzania
Tel: +255-738-201498/+255-787-289868,
Email: [email protected] [email protected]
Website: www.tatedo.org

Produced by: TaTEDO

For: DFID and Loughborough University

Date: 28 February 2020

Document Control Sheet

Loughborough University
Issue Status Author(s) Reviewed By Issue Date
Approved By

Draft version Jensen Shuma Estomih N. Sawe Jane Spencer/Anna Clement 28 /02/2020

Final version Jensen Shuma Estomih N. Sawe Simon Batchelor/Jane Spencer 07/05/2020
 i
Table of Contents

List of Abbreviations .................................................................................................................. ii

Preface .............................................................................................................................................. iii
Acknowledgements .................................................................................................................... v
Executive summary .................................................................................................................... vi

1.0 Introduction...................................................................................................... 1
1.1. Aims of the project............................................................................................ 1
1.2 Objectives of the Project................................................................................... 1
1.2 Structure of the Report..................................................................................... 2

2.0 Methodology...................................................................................................... 2
2.1 Sampling and Sample Size................................................................................ 2
2.2 Data Collection................................................................................................... 3
2.3 Analytical Assessment....................................................................................... 4

3.0 Implementation................................................................................................ 6
3.1 The Work Conducted......................................................................................... 6
3.2 How the Idea was Generated........................................................................... 13
3.3 Challenges Faced and their Resolution/Mitigation........................................ 13
3.4 Gender Mainstreaming in the MECS Activities............................................... 14

4.0 The Research Findings...................................................................................... 14

4.1 Situation of Modern Cooking Energy Delivery System.................................. 14
4.2 Approach for Designing the MECS Delivery Model....................................... 29
4.3 Mapping and Tools for Supporting Approach for
Designing EPC Delivery Model......................................................................... 31
4.4 Case Studies for Sustainable Delivery Models for
Rural and Urban Areas...................................................................................... 35

5.0 Limitations of the Innovation/Approach/Design/System............................ 43

6.0 Practical Applications of the Concept to the National

Cooking Energy System.................................................................................... 43

7.0 Next Steps.......................................................................................................... 44

7.1 Next Intervention Include the Costs, Time and Resources
Required for Next Steps of Development /Implementation........................ 44
7.2 Funding Planning to Apply for the Next Steps such as EU, DFID................. 45
7.3 Partnership Developments and New Investors Engagement...................... 45

8.0 Dissemination Plan........................................................................................... 46

9.0 Conclusion......................................................................................................... 48

References................................................................................................................. 50

Appendixes................................................................................................................ 52
 ii
List of Abbreviations

ADD-MECS-Ta : Approach to Designing Delivery Models for MECS in

Tanzania
CBO : Community Based Organisation
DFID : Department for International Development
DP : Development Partners
EAC : East African Community
EPC : Electric Pressure Cooker
EU : European Union
EWURA : Energy and Water Utilities Regulatory Authority
FI : Financial Institution
GM : Gross Margin
LGA : Local Government Authority
LPG : Liquefied Petroleum Gas
LU : Loughborough University
MECS : Modern Energy Cooking Services
MFI : Micro-Financial Institution
NBS : National Bureau of Statistics
NGO : Non-Governmental Organisation
PAYG : Pay as You Go
PO-RALG : President Office-Regional Administration and Local
Governments
PRA : Participatory Rural Appraisal
PS : Private Sector
RAT : Risk Assessment Tool
REA : Rural Energy Agency
SACCOS : Savings and Credits Cooperative Society
SADC : Southern African Development Community
SE4All : Sustainable Energy for All
SME : Small and Medium Enterprise
TANESCO : Tanzania Electric Supply Company
TaTEDO : Centre for Sustainable Energy Services
VICOBA : Village Community Bank
 iii
Preface

Globally, millions of people especially women and children in households are

exposed to indoor air pollution from inefficient and low quality fuels which
contribute to the death of more than 4 million people every year and other millions
more suffer from cancer, pneumonia, heart and lung disease, blindness, and burns.

Access to affordable and reliable cooking energy services is part of SDG 7 targets
which intends to increase population with access to clean cooking solutions. The
transition from traditional cooking energy to modern cooking energy in Tanzania
has been dominated by gradual and slow ascend to the energy ladder. Majority of
the population in Tanzania are still at the low levels of energy ladder depending on
solid biomass fuels, as income increases, some move upwards to modern energy
sources and few use electricity. However, fuel stacking is broadly practiced.

TaTEDO in collaboration with the University of Loughborough through the MECS

TRIID programme is delighted to present through this publication, the outcomes of
the research project on “Approach to Designing Delivery Models of Modern Energy
Cooking Services in Tanzania”.

It has been evident from previous studies (eCook 2018), that cooking with electricity
is now cheaper than cooking with LPG, kerosene, or charcoal in urban, peri-urban
and rural settings. This research project has assessed the entire market system of
the modern cooking options and has come up with sustainable delivery/business
models for the large scale adoption of modern cooking energy appliances and
services in Tanzania.

The fruitful outcomes obtained during the implementation of this project have
provided opportunity to study and understand the market system from national to
local markets which is fundamental for scaling up successful business interventions.

Wide scale cooking with high efficient appliances as clean cooking solutions will
address challenges of enhancing sustainable markets for clean cooking energy
services from fuels to electricity uses.

The research project has also shown different local and national approaches that
combine interventions along the market chain, support services and enabling
 iv

environment to facilitate delivery of clean cooking appliances and services on large

scale to end-users. If adopted, the lessons learned may reduce dependence on
solid biomass fuels towards increased use of electricity for cooking in households.

....................................................................
E. N. Sawe
Chief Executive Officer
TaTEDO
 v
Acknowledgments

The report is based on the research study on Approach to designing delivery

models of modern energy cooking services in Tanzania implemented by TaTEDO.

We would like to thank UK Aid (DFID) for funding the research study through the
Modern Energy Cooking Services programme (MECS). We are grateful for the
insight and expertise from Loughborough University who are implementing the
MECS programme for always being there to assist and advise during the course of
this project.

We also thank all government officials, the President’s Office Regional Administration
and Local Government for issuing the required permissions on time and the Ministry
of Energy and other Government institutions for continuous collaboration. We
would also like to express our gratitude to the Regional Administrative Secretaries of
Dar es Salaam and Morogoro, the District Executive Directors of the three districts,
Gairo, Kinondoni and Ubungo, where this project was implemented. We are really
grateful to the ward and street leaders as well as the selected households and
individuals for providing maximum cooperation and valuable inputs to the project.

Many other people have participated in the preparation of this book. It’s our wish
to mention each by name but it is not easy. We would finally like to acknowledge
their contribution and willingness to be part of this research project.
 vi
Executive Summary

The MECS TRIID research project aimed at assessing and understanding the entire
market systems of modern energy cooking appliances (specifically electric pressure
cookers) in order to propose an approach for designing sustainable delivery/
business models for scaling up their uptake in Tanzania. The project has been
implemented in urban and peri-urban areas of Dar es Salaam Region (Ubungo and
Kinondoni districts) and a rural area of Gairo District in Morogoro Region where
PowerGen Company is currently operating a Solar PV Mini-Grid power plant.

The methodology of the research project was performed through sampling of

participants, data collection and analytical assessment of information on modern
energy cooking services. Sampling of the users of the Modern Energy Cooking
Services for this research was performed by selecting households from segments
of low, medium and high incomes and suppliers along the market chains. The
research data were collected from both secondary and primary sources for use in
different analytical assessment tools. The analytical assessment was conducted to
understand the entire market systems of Electric Pressure Cookers (EPCs).

The following activities were performed by the project in order to achieve the
research objectives:

• Undertake project preparatory activities which include application

of research permit, introduction of project to Local Government
Authorities(LGAs) in the selected areas and preparation of the
inception report,
• Review literature and collect secondary data and information
from different sources,
• Identify and assess demand of highly efficient electric pressure
cookers,
• Undertake market analysis of the highly efficient electric pressure
cookers,
• Assess the enabling environment for MECS in Tanzania
• Assess and understand the required support services.
The research findings from the project indicate that the target markets for EPCs
are households and small food business enterprises in both rural and urban areas.
The aggregate demand of EPCs is still very low in Tanzania. The factors which were
observed and considered to influence the demand of EPCs are awareness of
appliance, price of appliance, seasonality of income, availability and quality of the
appliance and income level of customers which determines affordability and prices
of substitutes/compliments.
 vii

Based on the findings of the project, there are six potential chains for marketing
EPCs to the end-users. These are market chains from manufacturers through
importers to:

i. Supermarkets to urban end-users,

ii. Urban end-users
iii. Distributors to urban end-users
iv. Distributors to rural end-users
v. Distributors, retailers to urban end-users,
vi. Distributors, retailers to rural end-users.
Most of retailers are at the moment, mini-grid owners who supply EPCs to rural
end-users.

The end users of electric pressure cookers who will benefits from modern energy
cooking services are categorized into various groups based on their income. These
are 1) Low Income Customers, 2) Medium Income Customers and 3) High Income
Customers. The most potential customers for electric pressure cookers are type 2
and 3customers (high and medium income segments) and 40% of the type 1(low
income customers) especially business persons and individual households with
regular monthly income.

There are market barriers observed during implementation of the project. These
are low awareness, low affordability due to limited financing from end-users,
limited capitals for suppliers, availability of appliances, technical gaps such as after
sale services, knowledge to use and cultural barriers related to tastes, perception,
preferences and deep fraying.

The support services required for facilitating access of EPCs to end-users include:
awareness campaign and promotion of EPCs, capacity building trainings for use,
financial support to enhance affordability for end users and investment and
working capital for importers, distributors and retailers and after sale services of
electric cooking appliances.

The enabling environment is brought about by supportive policies of energy,

trade, SMEs, micro-finance, feed-in-tariffs, fiscal and monetary issues and related
strategies, programmes and institutional and legal frameworks. These documents
among others support the delivery of modern energy cooking services in Tanzania.
viii

According to this research study, it has been observed that the approach for
designing the delivery model for modern energy cooking services will be undertaken
through the following steps: 1)Entry Point and Assessment of Potentials, 2) Actors
Assessment 3)Identify Potential Customers, Demand and Value Proposition 4)
Assess and decide on the Supply Chain(market actors and barriers) 5) Study the
Enablers and Determine Support Services to Actors, 6) Design and Test MECS
Delivery Model, 7) Optimize, Review and Retest the Delivery Model, 8) Plan and
Operationalize Implementation of MECS Delivery Model and 9) Select Implementers.

The specific focus of this research is an approach for designing Modern Energy
Cooking Service Delivery model, which was assessed through analytical framework.
The approach is supported by two components: 1) Mapping the Modern Energy
Cooking Delivery System and 2) Tools Required for Designing MECS Model. The tools
for MECS models include Delivery Model Map, Business Model Canvas, Stakeholder
Mapping Tool, Need Assessment Tool and Risk Assessment Tool.

The case studies highlighted for sustainable delivery models were developed
according to information and analysis which was obtained from participatory
meetings in rural settings with mini-grid electricity users and urban settings with
national grid electricity users.

The next steps will build on the implementation of the findings and recommendations
of this research project and widen focus of this innovation to other areas. The
MECS team at TaTEDO in collaboration with different partners will continue with the
efforts of addressing the identified barriers along the market chain and within the
enabling environment in order to contribute to the efforts of developing a market
of EPCs in Tanzania.
ix
x
 1

1.0 Introduction
The Approach to Designing Delivery Models of MECS in Tanzania
(ADD-MECS-Ta) is a research project with purpose to study the entire
market systems of the modern energy cooking appliances in order
to identify, assess and understand market actors, barriers, enablers
and drivers in order to propose for an approach that will improve
the delivery of modern energy cooking appliances in Tanzania. The
modern energy cooking services (MECS) researched through this
project are geared towards improving market of modern energy
cooking appliances specifically the high efficient Electric Pressure
Cookers (EPCs) which are cleaner cooking appliances that have low
or zero emissions of harmful fumes. The time scale of the project was
six months (19 Aug 2018 – 28 Feb 2020)
The project was implemented in urban and peri-urban areas of Dar
es Salaam Region (Ubungo and Kinondoni Districts) and rural areas
of Gairo District in Morogoro Region where PowerGen Company is
currently operating a Solar PV Mini-Grid power plant.

1.1. Aims of the project

The project aim was to assess and understand the entire market
systems of highly efficient electric cooking appliances (specifically
EPCs) in order to propose an approach for designing sustainable
delivery/business models for scaling up their uptake in Tanzania.

1.2 Objectives of the Project

The project intended to assess and understand the following
attributes:
• Market chain from suppliers/importers, distributors, retailers
to the customers/end-users of the modern cooking energy
appliances and services,
• Socio-economic and cultural context of potential end-users or
end users of the MECS in the project areas,
• Required support services (awareness, grants, micro-finance,
capacity building, etc)
• Enabling environment (policies, strategies, legislation, etc).
 2

1.3 Structure of the Report

The final research report presents the methodology and findings
of the study from the project areas on the Approach to Designing
MECS Delivery Models in Tanzania. The report starts chapter 1 on
introduction which provides background, aim and objectives of the
project. This is followed by the second chapter on methodologies for
sampling, data collection and analytical assessment. The third chapter
consists of work conducted in the field which is followed by findings
of the research. The findings have four sections. The section 4.1
presents findings from the study on the MECS market system. These
findings were used to develop an approach for designing MECS
delivery models (Section 4.2). Section 4.3 describes the supporting
tools that are part of this approach (the full tools are attached as
appendices). Section 4.4 presents case studies of MECS Delivery
Models developed by using the proposed approach. The report at
the end explains where research findings will be applied, next steps,
dissemination plan and conclusion.

2.0 Methodology
The methodology of the research project was performed through
participant sampling, data collection and analytical assessment of
information on highly efficient electric pressure cookers.

2.1 Sampling and Sample Size

Sampling of participants of the MECS research project was performed
by selecting end-users from segments of low, medium and high
incomes in order to identify and assess their market characteristics
i.e. the end-users perceptions, preferences, understanding, barriers,
levels of awareness, gaps and proposes interventions and options
to increase access to EPCs. Sampling was also used to identify
suppliers/importers, dealers and sales agents who are key actors in
the marketing of EPCs.
Focus groups discussions were used for sampled out categories of
district staff, women, importers, distributors, retailers and leaders at
the local and national levels.
 3

During the field work study, the project team selected 30 households
for assessing among others, socio-economic and cultural issues
including the end-users perception and demand of efficient electric
cooking appliances. The information was captured from potential
end users on different ways of scaling up the uptake of high efficient
Electric Pressure Cookers (EPCs).

2.2 Data Collection

The research data were collected from both secondary and
primary sources and were used in different analytical assessment
tools. Secondary data were collected from published sources. The
methodologies used for primary data collection were divided into five
parts.
• The first part was to use tools of the Participatory Rural Appraisal
(PRA) in villages where PowerGen mini grid are located to collect
primary socio-economic, cultural information, needs and wants
from rural based end-users with potentials of using EPCs.
• The second part was conducted through household survey and
participatory meetings to collect primary information from urban
and peri-urban end-users who are grid connected customers.
• The third part was conducted through survey of other market
actors such as importers, distributors and retailers.
• The fourth part was to undertake meetings with development
partners and financial institutions to find out the possibility of
getting more information on knowledge and financial resource
support, donor policies on clean cooking, investment opportunities
for EPCs and any other interventions or plans for similar initiatives.
• The fifth part was on the enabling environment whereby meetings
with staff from relevant ministries and government agencies were
conducted to find out and discuss policies, acts, strategies and
similar initiatives which may affect or influence the adoption of
modern energy cooking services in Tanzania. This also included
assessment of fiscal and monetary policies and their effects to the
delivery of MECS in Tanzania.
4

2.3 Analytical Assessment

The analytical assessment was conducted to market systems of EPCs
in order to propose an approach and interventions required for
designing their delivery/business models in urban, peri-urban and
rural areas of Tanzania. The research through analytical assessment
was categorised into three levels of the market system which include:
market chain, support services and the enabling environment.

2.3.1 Market Chain

The project assessed the market chains of the EPCs in order to identify
the market actors and the demand from end-users for EPCs, as well
as competitors (LPG, Kerosene, briquettes, charcoal and firewood
stoves) and their distribution networks.

The project managed to undertake the following functions:

• Analyse and understand market chains of efficient Electric
Pressure Cookers (EPCs).
» Assess and understand market actors along the market
chains (end-users, retailers, distributors, suppliers/importers
and producers)
» Analyse and understand barriers, enablers and drivers of
delivery of EPCs,
» Evaluate the end users behaviours and their appeal to market
of EPCs by considering
- How they prefer to buy EPCs
- Whether they need personalized education and training
- Whether they need additional products or services to
be used along with appliances
- Find out after sale services are required for appliances
and who will provide them
- Their willingness and ability to pay for EPCs
• Find out how to reduce market margins for affordability
improvement towards fast marketing and delivery of EPCs for
different segments of end-users
 5

• Explore possibilities of micro-financing to provide affordable

financing to end-users, distributors and retailers
• Find different ways of distributing EPCs to the end-users.

2.3.2 Support Services

The assessment was also conducted to determine kind of support
services required for urban, peri-urban and rural areas. This includes
to:
• Identify barriers and gaps of support services from different
actors along the market chain.
• Find out different ways for granting access to micro-credits for
low income end users so that they can pay for cooking appliances
on flexible terms.
• Assess capacity along the market chain and possibility of
developing it for actors capacity and skills base, as well as that of
other actors (e.g. local government or private sector),
• Find out and assess possible methods of increasing awareness
of EPCs in the market i.e. radio, prints, TV, social media, live
demonstration in national events/public areas, eCook Book, etc.

2.3.3 Enabling Environment

The enabling environment was also assessed as key and principal
enabler for facilitating the widespread and uptake of modern energy
cooking services. The assessment considered the following areas:
• Discuss with policy makers, credit providers, decision makers
(national and local levels),etc. on enabling environment required
for MECS
• Opportunities for fostering the enabling environment required
for the delivery of highly efficient cooking energy appliances,
• The governmental structures, regulations, policies and incentives
that support or can impede the delivery of cooking energy
appliances and services.
• Identify areas for advocacy to the government and other influential
actors (development partners) such as on tax reforms, incentives,
financial institutions services and other reforms necessary for
improving the enabling environment.
6

Market mapping was used to show the actors, barriers, enablers

and drivers within the market system of EPCs including the required
enabling environment and supporting services.

3.0 Implementation

3.1 The Work Conducted

The following activities were performed by the project in order to
achieve the research objectives:

3.1.1 Undertake project preparatory activities which included

application of research permits, introduction of project
to Local Government Authorities (LGAs) in the selected
areas and preparation of inception report
The initial procedure required for implementing the project and
doing research in Tanzania is to seek permission from the relevant
government authorities. The permit was requested and obtained from
the President’s Office-Regional Administration and Local Governments
(PO-RALG). The permit was submitted to the Local Government
Authorities (LGAs) to introduce the MECS TRIID project and requested
the district support during project implementation. The inception
report and research tools were as well prepared. The inception
report was prepared to present preliminary key elaboration of the
research project for data collection and analysis from the fieldwork.
The research tools for data collection focused on the components
of market systems which include market chains, additional support
services required and the necessary enabling environment. The tools
were questionnaires for household surveys and checklists for PRA
and focus groups discussions. Checklists in urban areas were used
for data collection from the development partners, market actors,
micro financial institutions and relevant sectoral ministries. PRA tools
were used to collect data from stakeholders in rural areas.

3.1.2 Review literature and collect secondary data and

information from different sources,
The review of literature was undertaken from published documents
on the subject matter of the modern energy cooking services. The
 7

sources for the secondary data were from previous studies conducted
on eCook and clean cooking in Tanzania and literatures on Modern
Energy Cooking Services, energy delivery/business models, gender
mainstreaming in energy cooking services, etc. Some of the sources
of secondary information are records, reports, policies, strategies,
newspapers, newsletters, internet, articles and journals.

3.1.3 Primary Information Collection

The primary data were collected from the field to assess the modern
energy cooking context and identify the end-users’ needs and wants.
The primary data was collected from the field to assess the modern
energy cooking context and identify the end users’ needs and wants.
The type of information gathered from three project districts varied
depending on the levels of income, location, cultural issues and types
of food cooked by end-users. The following approaches and methods
were used for primary information collection:
• Undertake PRA for data collection and socio-cultural information
at Songambele and Kitaita Villages in Gairo District,
• Distribute highly efficient electric pressure cookers to selected
households (high, medium and low income) to test acceptability,
willingness to pay and uptake of appliances and collect data from
end users.
• Undertake interviews and participatory focus group discussions
with high, medium and low income customer segments in the
community while ensuring gender consideration,
• Conduct household survey for the end users in Kinondoni and
Ubungo Districts,
• Undertake meetings with the Development Partners in Dar es
Salaam Region,
• Conduct meetings with Financial Institutions in Dar es Salaam
Region,
• Undertake meeting with relevant ministries and Government
Institutions in Dodoma as the Capital City of Tanzania.
• Identify and conduct survey of entrepreneurs along the market
chains in all project districts
 8

The information collected was used to identify and assess demand

and supply, analyse market, assess required support services and
determine the enabling environment. The analytical assessment was
performed to get aggregated information of developing an approach
and delivery/business models for scaling up delivery of MECS activities
in Tanzania.

3.1.4 Identify and Assess Demand of Highly Efficient Electric

Pressure Cookers
The aim of the demand identification was to assess the value
proposition from both end–users and other stakeholders. The first
step for demand assessment was to create awareness on how
efficient electric pressure cookers work and their multiple benefits to
end-users. It also included description and awareness raising of the
values which the customers or end-users may receive by accepting
to use electric pressure cookers for their daily cooking. The graphic
illustration hereunder (chart 1) from eCook Project was used to create
awareness on cooking energy budget comparison for a customer
who is intending to switch to highly efficient Electric Pressure Cookers
(EPCs)

Chart 1: Cost Comparison for Different Cooking Appliances

THE CHEAPEST & FASTEST WAY TO COOK IS TO USE EPC
1400
Efforts were made to know if
anything could beat an Electric 1200
Pressure Cooker (EPC) on cost, so we
boiled 500g of yellow beans as
1000
carefully as we could on charcoal,
kerosene LPG, an electric hot plate
and on EPC. 800
Tshs

All the tricks in the book were 600

applied - lids on the sufarias, turning
down to a simmer, just enough 400
water, etc. However, we still couldn’t
get close to an EPC.
200
Not only was it thirteen times
cheaper than charcoal, but it cooked 0
Charcoal Kerosene LPG Hotplate EPC
in half the time without any stirring
or topping up of water or fuel.
 9

i. Intervention Context
The project is intending to serve end-users
who are potential customers of EPCs in
urban, peri-urban and rural areas. The
selection of end users was determined by
income levels and source of electricity. The
end-users for rural areas were selected from The aggregate
smallholder farmers who are depending demand of Electric
on income from agricultural products at Pressure Cookers
Kitaita and Songambele in Gairo District.
The end-users for urban and peri-urban
is still very low
areas were selected from high, medium in Tanzania. The
and low income households of Kinondoni factors which
and Ubungo Districts in Dar es Salaam were observed
Region. The research also considered
and considered
users versus energy infrastructure such as
users of the national electric grid and local to influence the
mini-grids. All these target groups were market demand
intervened to assess potential demand of EPCs are
of EPCs and were used as entry points appliances’
of designing delivery model of modern
energy cooking appliances and services.
awareness,
prices, availability,
ii. Actors Engagement and Mapping quality,
Different actors were involved in assessing
seasonality of
delivery of highly efficient electric cooking income and
appliances and services. These included income level of
smallholder farmers, LGA staff, government customers.
staff, people in urban households, community
groups at ward levels, end-users of micro-
financial institutions, staff in the private
sector, etc. The participatory approaches
were used to map and engage end-users
and other actors in rural, urban and peri-
urban areas. These approaches were also
used to collect data to identify demand
by mapping out perceptions, preferences,
drivers and interests of using EPCs.
10

iii. Needs and Wants

End-users needs during undertaking of this research focused on
possibility of acquiring appliances which are affordable, clean,
efficient, safe, energy/budget saving and do not require close care
and attention when a user is cooking. The drivers for engaging
users in the process of demanding EPCs were also identified and
this led to the identification of users for testing EPCs adoption.
A total of 22 end users who showed interest of participating in
the research procured EPCs through direct payments and local
credit mechanisms. These credit mechanisms in Kitaita and
Songambele were in the form of selling EPCs through village
leaders as guarantors who will make close follow up to the end-
users. In Kinondoni and Ubungo, some high income segments
paid cash but middle and low income paid through MFIs (SACCOS
and VICOBA). The EPCs were used for testing their needs, wants
and perceptions on the use of new appliances and changes in the
cooking behaviours.

iv. Gaps and Barriers of Delivering Modern Energy Cooking

Services
The process also assessed potential gaps and barriers of delivering
EPCs to end-users. The different stakeholders helped to identify
gaps/barriers and potential ways of filling those gaps. This was
followed by the prioritisation of solutions in order to effectively
remove gaps or barriers in the market system of modern energy
cooking services.

v. Potential Interventions and Objectives

The research analysis also identified potential solutions that could
be used for coming up with priority needs from end-users so that
the existing barriers could be addressed. At the end, the users
proposed some interventions as possible solutions and objectives
which helped to develop approach and ultimately delivery/
business models for supporting MECS at the community level.
 11

3.1.5 Undertake Market Analysis of the Electric Pressure

Cookers
The project at this stage, managed to undertake analysis of the
potential value propositions and determine which market chain
options are available for dissemination of EPCs. On the basis of the
characteristics of the socio-economic and cultural context and the
existing enabling environment, market analysis involved combination
of resources, people and processes that are aimed to improve
delivery of modern energy cooking services in a sustainable way to
the end-users. The process involves EPC promotion or awareness
creation, understand customer satisfaction, understand customer
needs, identify segments of EPC interested customers, market testing
and assess willingness and ability to pay from customers.
The market chains and associated actors who are expected to supply
EPCs to the end-users were identified. The next stage was to find out
how to ensure that proposed values will be delivered to end-users
through market chains. The last step is to ensure sustainability and
determine benefits of social-cultural and environment attributes
required in each market chain.
12

3.1.6 Assess and Understand the Required Support Services

The support services are required to mitigate risks and improve
delivery of modern energy cooking services to end users and market
actors. The research team in some areas of Gairo, Ubungo and
Kinondoni districts observed areas with lack of market for EPCs and
tried to find out gaps or barriers which have caused this situation.
This led to the identification of type of additional support required
to design and deliver EPCs to the end users. The main gaps/barriers
which were assessed during the undertaking of the research activities
include; level of awareness, capacity and skills of market actors,
financial support available for end users and other market actors,
availability, after sale services and quality of EPCs.

3.1.7 Assess the Enabling Environment for MECS in Tanzania

The research assessed governmental policies, structures, regulations,
and incentives that support or impede the delivery of modern energy
cooking services. The enabling environment information was gathered
through the following procedures:
• Discuss with staff from relevant ministries, government institutions
and local government staff to get their perception on modern
energy cooking services,
• Review existing policies, strategies, regulations plans, programmes
and other government documents to identify the policies which
support or impede modern energy cooking services.
• The assessment was also made to find out those policy areas
which could become barriers for the market of EPCs in Tanzania.
• Determine government regulations, structures and policies that
support business and marketing of similar goods and services in
the country

Although many of the enabling environment attributes are beyond

the direct control of the market actors and end-users, assessment of
these attributes was considered important for designing measures
for developing sustainable delivery/business models.
 13

3.2 How the Idea was Generated

The idea of developing an Approach for
Designing a Delivery Model for Modern
Energy Cooking Services originated from
the perceived problems and difficulties
of disseminating and scaling up the
efficient electric cooking appliances to
end-users. The problem was experienced Electricity was
immediately after the eCook Study which observed to be
was carried out by TaTEDO, GAMOS,
the cleanest
University of Surrey and Loughborough
University in 2018. Electricity was observed and cheapest
to be the cleanest and cheapest means means of cooking
of cooking food and if it is used in efficient food and if it is
appliances will be affordable by most of used in eff icient
the people, especially the poor segments
in the community. The challenge was
appliances will be
low awareness and appropriate means affordable by most
of obtaining and supplying EPCs to the of the people,
end-users. Inefficient and low quality especially the
appliances were also noted to be a major
poor segments in
barrier. These were among the barriers
for efficient cooking and appropriate the community.
delivery to potential end-users in the The challenge was
country. low awareness
and appropriate
3.3
Challenges Faced and their
means of
Resolution/Mitigation
obtaining and
The main challenge faced during the
implementation of the research project supplying EPCs to
is rescheduling of the planned activities the end-users.
due to the delays of processing permits
and introduction of the project to local
authorities in the project areas. The
reason for this change is due to the
fact that the permit process and project
introduction coincided with a period of
14

local election registration, campaigning and election of new leaders

of the local governments. The MECS team had to wait for new local
regime in the local government to be in place. This challenge was
mitigated by rescheduling the work-plan and moved forward activities
of the project research permit and introduction of the project at the
districts and wards levels.

3.4 Gender Mainstreaming in the MECS Activities

During the project implementation, MECS team managed to develop
links between women’s cooking activities and possible clean energy
solutions. The project has studied factors that influence adoption of
clean cooking solutions and use by women and girls. These include
type of cooking appliance and socio-cultural factors, such as how
time saved from use of clean and efficient electric cooking appliance
is spent. The data and analytical assessment from this project are
expected to benefit women and girls through the development of
sustainable delivery models for cooking appliances related to gender
and women’s empowerment. Women also participated in different
parts of the project implementation to provide information for scaling
uptake and improving market of modern energy cooking services.
The research also assessed how MECS delivery model can be used to
facilitate the uptake of EPCs by end users who to the large extent are
women and girls. During analytical assessment, the project strived
to find out the needs and preferences of women and girls which
would be used to inspire men so that they could help more women
to procure EPCs.

4.0 The Research Findings

4.1 Situation of Modern Cooking Energy Delivery System

4.1.1 Electricity as Energy for Modern Cooking Services

Electricity in Tanzania is generated from different sources such as
hydro, natural gas, solar, small hydro and thermal diesel and biomass
generation. Although, electricity is used for lighting, ironing and
phone charging in residential sector, it is exclusively used as energy
for cooking by few high income households. According to NBS/REA,
 15

of 2016 only 32.8 per cent of households

were connected to the national grid in
Tanzania but households which are using
electricity for cooking is only 0.3 percent.
The cost of electricity for this customer
category including tax, and other levies
is TZS 355 (GBP 0.13) per kWh. If a
household will use hotplate, two units of
electricity per meal cooked, or six units
per day at TZS 2,130 (GBP 0.76), monthly
consumption of electricity for cooking
would be approximate TZS 63,900 (GBP
22.8), currently more expensive than According to
charcoal. NBS/REA, of 2016
Frequent power cuts also frustrate only 32.8 per cent
households that cook with electricity, often of households
requiring a back-up supply of household
fuel often charcoal and LPG. Very few
were connected
Tanzanians think that they will ever have to the national
the opportunity to cook using electricity. grid in Tanzania
Access, reliability and affordability seem but households
to be barriers to the promotion of
which are using
electricity as an alternative to biomass
(firewood and charcoal); therefore, it has electricity for
been difficult for many people to imagine cooking is only 0.3
electricity as a realistic alternative energy percent.
in the foreseeable future.

4.1.2 Market Chains for Electric

Cooking Appliances (EPCs)
Market Chains according to this research,
are channels that take electric cooking
appliances from manufacturers to end
users, are currently different depending
on type and number of actors. The main
electric cooking appliance researched for
marketing through this project is Electric
16

Pressure Cooker (EPC). The target markets are households and small
business enterprises in both rural and urban areas. There are six
chains for marketing EPCs to the end-users.
i. The market chain from manufacturers through supermarkets to
end-users,
ii. The market chain from manufacturers through importers to
urban end-users
iii. The market chain from manufacturers through importers,
distributors to urban end-users
iv. The market chain from manufacturers through importers,
distributors to rural end-users
v. The market chain from manufacturers through importers,
distributors, retailers to urban end-users,
vi. The market chain from manufacturers through importers,
distributors, retailers to rural end-users.

The following chart shows marketing chains through which end-users

may obtain electric cooking appliances.

The important market chain for rural end-users

is the one starting from manufacturers through
local importers, distributors, retailers to rural
end-users. The important market chain for urban
end-users is the one starting from manufacturers
through local dealers, distributors to urban end-
users.
17 17

Chart 2: Marketing Chains for EPCs

Manufacturers
China, Japan, SA, Europe

Importers Distributors Retailers

1 2 3 4
5 6

Supermarkets

Customers
(Urban) Customers
(Rural)

The EPCs are manufactured in different countries (China, Japan, South

Africa, Europe, etc.) and are imported by local importers or owners
of supermarkets to Tanzania. Several of these supermarkets are in
urban areas. The EPCs which are vended through supermarkets are
bought directly by urban end-users. The local dealers may either
supply EPCs to urban end-users who will go to their stores or shops
or supply them through distributors who have been selling them
to retailers. The retailers may either transport them to the remote
areas of mainland towns or rural areas connected with electricity.
Many of these retailers are mini-grid developers who intend to
introduce new electric appliances to the mini-grid customers. The
important market chain for rural end-users is the one starting from
manufacturers through local importers, distributors, retailers to rural
end-users. The important market chain for urban end-users is the
one starting from manufacturers through local dealers, distributors
to urban end-users. These chains are important because services
of awareness, promotion, capacity building coupled with reasonable
prices provided to the end-users. The longer the market chain, the
lower the share of revenue which is generated by EPCs as the work,
18 18

reward and transport costs are spread out among many business
enterprises. This may also end up with high retail price of EPCs to
the end-users. This information was obtained from pricing structure
which was assessed from suppliers of EPCs along the market chain.

4.1.3 Gross Margin Analysis of EPC

The gross margin analysis was determined not only to manage
the profit of the businesses along the market chain but also to
weigh how much taxes are involved in the process of supplying
EPCs to the end users in Tanzania.

Table 1: Gross Margin or Pricing Structure Analysis

Items TZS GBP GM/Tax
1 Average Retail Price (retailers) 210,000 75.0
Transport (from distributor) 1,000 0.4
Tax 17,600 6.3 8.38%
Training 5,200 1.9
Retailer Gross Margin 6,200 2.2 2.95%
2 Distributor Price 180,000 64.3
Transport to retailer 1,250 0.4
Transport from Importer 1,000 0.4
Promotion 3,250 1.2
Training 10,500 3.8
VAT (18%) 32,400 11.6 18.00%
Distributor Gross Margin 10,400 3.7 5.78%
3 Importer Price 125,000 44.6
Transport from entry points 1,000 0.4
Importation costs 5,200 1.9
VAT (18%) 22,500 8.0 18.00%
Import Duty (10%) 8,800 3.1 7.04%
Importer Gross Margin 10,000 3.6 8.00%
4 Producer Price 77,500 27.7

The total gross margin for different actors along the market chain is
16.73%. The total tax (including VAT, Import duties and others) which
is deducted from the sales of EPCs along the market chain is 51.42%.
This implies that exemption of EPC from tax payment will reduce the
price of EPC by more than 50% in the market. If some distributors
decided to import directly from manufacturers this would also reduce
price by 8%. The gross margins for actors are generally low because
 19

business for EPCs is at the early growth

stages in Tanzania and it requires some
effort to develop marketing efficiencies.
Exemption of EPC
4.1.4 Customer (End-Users) Segments from tax payment
The end users or customers of EPCs who will reduce the
will benefits from saving and reduced price of EPC by
costs of modern energy cooking services
are categorized into various segments
more than 50% in
based on their income, availability of the market.
electricity and other preferences such as
sizes of the appliances. The information
was obtained during household surveys,
focus group discussions for urban end-
users and PRA for rural end users. The
category percentage was also determined
from the NBS Household Budget Surveys
(2017). The customers of EPCs can be
splinted in the following categories:

Type 1 – Low Income Customers

About 53% of people fall into this sub-categories:
• Smallholder farmers with average earning of 2-2.5 £ per day
• Business persons – earning between 2-5 £ per day.
• Individual households with regular monthly incomes (rural
medical officer, rural school teachers, etc.) – earning between 4-7
£ per day.

Type 2 – Medium Income Customers

About 32% of people belong to the following sub-categories
• Medium scale farmers and enterprises – earning between 8-10£
per day
• Individual households – earning average income of about 10£ per
day.
• Small enterprises such as food kiosks, food vendors, etc with 8 –
15£ per day
20

• Faith Based organization offices like churches and mosques with

8-10£ per day

Type 3 – High Income Customers

About 15% of people with the following sub-categories
• Large farmers earning income of more than 40 £ per day
• Employed Individual households earning income of more than 35
£ per day
• People with Business Activities earning income of more than 55
£ per day
The most important customers for EPCs are types 2 and 3 (high
and medium-income customers) and 40% of the type 1(low-income
customers), which encompasses business persons and individual
households with regular monthly income. The criteria used for
selecting who would be a likely and important customer include their
income or purchasing power and connection to electricity (solar,
mini-grid and national grid). The smallholder farmers require special
arrangements of flexible payments such as credit financing because
their income is seasonal. The supplier who will target this market must
access it during crop harvesting when farmers have high income.
The end–users in urban areas are households and small SMEs which
require modern energy cooking appliances and services for meal
preparation. Most of the distributors and retailers are supposed to
target these customers. The future efforts will strive to have an active
promotion and marketing strategy to cater for the above categories.
Most efforts will be directed towards clients and areas which will have
a high demand for EPCs.

4.1.5 Value Proposition

The main value proposition which is expected by end-users is
household energy cost reduction, time saving and clean energy
cooking services. Value proposed for suppliers will be profit obtained
from sales of EPCs. Other proposed values for end-users include
reduced in-door air pollution, safety of appliance, quality, quicker
cooking services, efficiency and energy saving and reduced labour
required for collection of fuels (Table 1). More than 90% of Tanzanian
population is using biomass fuels on inefficient cookstoves. For most
end-users, these EPCs will be new appliance for cooking since
 21

some of them are using inefficient cookstoves. Therefore, introduction

of MECS is expected to solve the end-users’ problems of inefficient
technologies, implying reduced wasteful consumption of energy and
high cost to the meal preparation.

Table 2: Value Proposed by Users Received EPCs

More
Required
EPCs
S. No Places EPCs at the Type of Sale Value Proposed
Supplied
time of the
study
Reducing time and
Kitaita/
Credits through labour for collecting
1 Songambele 6 10
Village Leaders cooking fuels, quick
(Gairo)
cooking services

Reduced household
Cash and Credits energy budgets,
2 Kimara(Ubungo) 2 13
through VICOBA time for cooking, in-
door air pollution

Reduced household
energy budgets, time
3 Sinza (Ubungo) 3 14 Cash for cooking, safety,
reduced labour for
cooking

Reduced household
energy budgets,
Credits through
4 Goba (Ubungo) 2 10 labour for cooking,
VICOBA
in-door air pollution,
appliance safety

Reduced household
energy budgets,
Mwananyamala Credits through
5 2 8 time for cooking, use
(Kinondoni) *VICOBA
appliance in food
vending enterprise

Reduced household
energy budgets,
6 Mbezi (Kinondoni) 4 15 Cash quicker cooking
services, efficiency
and energy saving

Reduced household
energy budget,
Cash and
reduced time and
7 Kawe (Kinondoni) 3 12 Credit through
labour for cooking,
**SACCOS
cleaner kitchen
environment

* VICOBA means Village Community Bank

** SACCOS means Savings and Credits Cooperative Society
22

4.1.6 Demand of the Modern Energy Cooking Appliances

The aggregate demand of EPCs is still very low in Tanzania. The factors
which were observed and considered to influence the demand of
EPCs are price of appliance, awareness, purchasing power of end-
users, seasonality of income, prices of substitutes/compliments and
quality of the product.
a) Price of the Appliance: The retail price to end-users of the
EPCs ranges from TZS 180,000 (GBP 65) to TZS 250,000 (GBP
90) depending on a point along the chain the appliances are
procured by an end-user. The EPCs have high price elasticity of
supply; therefore increase in price due to associated market cots
may make some low income customers withdraw from buying
the product.
b) Awareness: The EPCs as observed in rural and urban areas is
a new product in the market. Several end users in households,
government departments, local governments, financial
institutions and donors are not aware of benefits of EPCs on
energy and budget saving in their households.
c) Ability to Pay by Customers: The research was conducted in high,
medium and low income clusters of different end-users. High
income end-users have ability to pay for EPCs easily. The medium
income end-users have shown ability to buy the appliance
through credit facilities. The low income end-users will buy the
EPC whenever is subsidized through specific market schemes or
affordable credit mechanisms.
d) Seasonality of Income: The factor was observed for rural
customers in which there is time in the year, people have relatively
high income (boom) and the time when people have low income
(recession) in rural areas. This is attributed to seasonality of
income from agriculture.
e) Prices of Substitutes and Complements: The substitutes of EPCs
are LPG stoves, normal pressure cookers, charcoal stoves, firewood
stoves, etc. The complementary service of EPCs is electricity.
If the tariffs of electricity are higher than prices of alternative
energy sources, customers may weigh prices from alternative
fuels and costs incurred by using electricity for cooking and
based on this factor some customers may switch to substitutes.
 23

f) Quality of the Appliance: There are several types of EPCs. The

assessment of quality of the EPCs, showed that some EPCs are
not well insulated and some parts are hot when a user is cooking,
such that quality varies according to brand and makes in the
market. This factor may also make customers demand the high
quality electric pressure cookers.

Demand of modern energy cooking services by end users may also

be influenced by other needs such as sizes of EPCs, ability to use
and fears of new technology. It was realized that demand of EPCs
requires promotion and training on how to use the appliances. These
functions will enlighten end users on demand attributes above.
24

4.1.7 Support Services for Modern Energy Cooking Appliances

and Services
There are three categories of local actors of modern energy cooking
services which require support services namely importers, distributors,
retailers and end-users. Modern energy cooking appliances and
services are new innovations in the community; that is why its market
is still underdeveloped. The strategy for scaling up its market is
important and this requires support services for customers in order
to promote sales and achieve customer satisfaction.

The support services required for EPCs to customers are as follows:

• Awareness campaign and promotion of EPCs,
• Capacity building trainings for different groups of end-users
• Financial support to suppliers and end-users
• After sale services for highly efficient electric cooking appliances
• Advocacy for supportive policies, strategies, regulations, tax
exemptions etc.

These support services are required for facilitating the scaling up

market of modern energy cooking appliances. These services may
dramatically increase customer trust and loyalty since potential
customers may see how EPC is working and demand it for cooking in
their households. These factors were identified through stakeholders’
interviews during household surveys and focus group discussions.

4.1.8 Capacity Needs along the Market Chains

The capacity of actors along the market chains is important attribute
to ensure marketing of EPCs. The analysis of the capacity for market
actors were undertaken in order to facilitate scaling up of market of
EPCs to customers. The capacity needs of actors along the market
chains are as shown hereunder:
 25

Table 3: Capacity Required for Different Actors in the Market System

S. No. Actor Required Capacity/Support
1 Importer Reduced import duties, business capitals, knowledge on standards
and quality, EDS training, financing to enhance investment and working
capitals.

2 Distributors business and market networks, knowledge of after sale services,

marketing techniques, knowledge of the EPC, business capitals

3 Retailers awareness, knowledge of the EPC, business capital, network of

customers, repairing skills, transport

4 End-Users awareness, EPC operating ability, problem fixing, cleaning and

maintenance,

The main capacities required by all suppliers are investment and

working capitals for expanding their business activities, knowledge
and specifications of the EPCs and business and market skills. The
capacities required by end users are awareness, operating ability for
EPCs and after sales services. The awareness in rural areas can be
raised by brochures, leaflets, posters, radio and live demonstration
while in urban areas may be raised by prints, radio, TVs, social media
and trade fairs.

4.1.9 Enabling Environment for Modern Energy Cooking

Services
The enabling environment in this case refers to the formal policies,
strategies, public infrastructure, institutional and legal frameworks that
support the delivery of modern energy cooking appliances and services
in the market. The following policies, strategies, legal documents
and infrastructure are supporting modern energy cooking services.

The main capacities required by all suppliers are

investment and working capitals for expanding
their business activities, knowledge and
specifications of the EPCs and business and
market skills. The capacities required by end
users are awareness, operating ability for EPCs
and after sales services.
26

Table 4: Enabling Environment (Policies, Strategies and Legal Documents)

Policies Strategies/Programmes Legal Documents
National Energy Policy SE4ALL Action Agenda (2015) Electricity Act of 2008
(2015)

Tanzania Trade Policy (2017) Power System Master Plan Rural Energy Act of 2005
(2016)

Tanzania Monetary Policy Rural Electrification Master Energy and Water Utility
(2018) Plan Regulatory Authority Act (2006)

Tanzania Fiscal Policy (2017) Biomass Energy Strategy for Business Registration Act
Tanzania (BEST)(2014)

National SMEs Policy (2003) Standardized Power Tanzania Trade Development

Purchase Agreement & Authority Act (2009)
Tariffs (2008)

National Micro-Finance Tanzania Investment Environmental Management

Policy (2017) Prospectus (SE4All) ( 2015) Act
2004

Energy Subsidy Policy (2013) National Public Private

Partnership
Implementation Strategy

Feed-in tariff policy (2004)

The National Energy Policy (2015) focuses on market mechanisms

and means to reach the objective and achieve an efficient energy
sector with a balance between national and business interests. The
policy stipulates measures for affordable and reliable energy supplies
in country. It takes into account energy related environmental
considerations and increase energy efficiency. The SMEs Policy (2003)
stipulates possibility to promote business services, by using affordable
and efficient energy services. Some of the key regulations governing
Tanzania’s energy and renewable energy sectors are stipulated in
the Energy and Water Utilities Authority (EWURA) Act (2006). Some
functions which are conducted by EWURA are to protect consumer
interests and protect the financial viability of efficient suppliers. Micro
finance Policy (2017) creates an enabling environment for efficient
and effective microfinance sub-sector in the country that serves the
needs of the low-income individuals, households and enterprises.
 27

The fiscal policy in relation to MECS includes import duties, taxes,

exemptions, subsidies and energy bills. The energy bills depend on
three attributes tax rate, level of consumption and unit price. The
higher cooking energy consumption by end-users can be caused
by inefficiency of cooking appliances and low consumer awareness.
The attributes have effects to the consumer purchasing power and
household welfare.
Most of these policies and regulations are supporting and creating
enabling environment for activities of the proposed business. However,
the MECS market environment can be improved by reducing tax and
providing incentives in order to increase affordability of EPCs to low
income end-users.

4.1.10 Barriers for Delivering Highly Efficient Electric Pressure

Cookers
The research project assessed barriers of supplying EPCs from
different end-users. The following are barriers assessed and identified
during implementation of research activities:

i. Awareness Barriers
The main barrier observed from end-
users at all levels was low awareness of
using EPCs. Efficient cooking by using
EPCs is a new practice to many end- Market
users. The MECS also requires to be environment
introduced in the country education of EPCs can be
system. The lack of awareness was also
observed for development partners,
improved by
government staff, local leaders and reducing tax
end users in the community. The and providing
low awareness if is not resolved will incentives in order
become barrier for demand, support
to increase their
services and commercialization
of electric cooking appliances and affordability for low
services. MECS knowledge and skills income end-users.
are also supposed to be introduced
in education system of Tanzania.
 28

ii. Financial Barriers

The financial barriers, according to this project can be divided
into low affordability by end-users and limited access to capitals
for suppliers. The low affordability was observed to be a gap for
medium and low income segments of end-users in both urban
and rural communities. This is attributed to seasonality of income
for rural end-users and priority put on cooking appliances, lack
of adequate income and gender income allocation decisions in
the households for urban end-users. The financial barrier for
suppliers is limited access to capital for business development
(such as credit, loans etc.).

iii. Technical Barriers

The technical barriers identified through this project are size
of appliances, quality, knowledge on how to use appliance and
after sale services. The size of many appliances promoted and
sold through different stores and supermarkets are of six litres.
This seems to be inadequate size for a large family of more than
eight people. Cooking with efficient electric appliances requires
changes in normal practices and behaviours of preparing meals

in the households. The qualities of

EPCs in the market are different
The size of many caused by efficiency, operability and
appliances limited functions of the appliances.
promoted and This requires new knowledge on how
to use appliance. Any person who will
sold through
buy EPC will also require assurance of
different stores after sale services such as repairs and
and supermarkets spare parts. Others will also prefer to
are of six litres. have two pots per EPC instead of one.
This seems to be
inadequate size iv. Cultural Barriers
for a large family The cultural barriers assessed from
of more than eight end users especially in rural areas, are
related to heating and warming up the
people.
 29

house, drying crops and frying some food stuff. The traditional
cookstoves are used for cooking and cater for above functions, the
electric pressure cooker is only used for cooking. Therefore, the
family in cool areas is supposed to find other means of warming
up, drying crops and frying food. There are also considerable
suspicions surrounding the introduction of EPCs as new products
to end-users. Some end-users would prefer for someone else to
use and carry the process of appliance familiarity before they buy.

v. Appliance Availability Barriers

The high efficient electric cooking appliances (especially EPCs) are
not easily available in the market at the moment. If awareness
creation and promotion is undertaken for EPCs, there are high
chances that there will be scarcity of those appliances in the
market. There is a need for bulky supply of EPCs in the country
in while exploring possibility of establishing factory for EPCs in
Tanzania for enhancing supply of EPCs as demand is strengthened

4.2 Approach for Designing the MECS Delivery Model

A MECS delivery model is a combination of the appliance, support
services, management activities, enabling environment and
relationship types required to supply efficient cooking energy
appliances to end users. This research has resulted in an approach for
developing delivery models for EPCs, which consists of the following
steps:
30

Table 5: Steps in the Approach for Designing the Delivery Model for EPCs
S. No. Step Description

1 Starting Point The starting points are different depending on challenges along the market
and Assessment system. According to the research, the starting point was the problems
of Potentials of low awareness, unavailability and difficulty of supplying EPCs to the
end-users. This is followed by choosing appliance for cooking, initial MECS
modelling functions and involved actors and geographical areas. The
potential of uptake of the EPCs is also required to be assessed from all
actors and from selected areas.

2 Actors Analysis The actors’ analysis should be undertaken for high, medium and low
income segments in the market chain in considered geographical areas.
The analysis also involve social-cultural assessment of each segment and
their affordability of appliances and services

3 Identify The potential customers of efficient cooking appliances need to be identified

Potential at this stage and drivers for adopting the cooking appliances. This is followed
Customers, by determination of potential demand of highly efficient cooking appliances
Drivers, through assessing intervention context, how customers will be engaged,
Demand socio-economic and cultural issues, needs and wants, gaps and barriers and
and Value potential interventions/objectives. The value proposition of both end-users
Proposition and suppliers will also be identified as drivers for demanding appliances.

4 Assess and The step needs to assess the supply chains of EPCs in the market and
decide on determine the important supply chain for a particular area. The important
the Supply supply chain should be able to reach most customers and provide the
Chain(market reasonable market margin. All associated market services and market actors
actors) need to be assessed to remove any anomalies along the market chain.

5 Study the The enabling environment in terms of policy, strategies, legal and regulatory
Enablers and frameworks through which the model will operate need to be assessed.
Determine The support services for end-users and suppliers will also be determined
Support to find out kind of support should be provided to market actors.
Services

6 Design and Test At this stage, different tools and charts will be used to build the delivery
Delivery Model model which will deliver appliances to the end-users in the community. This
stage will go concurrently with division of responsibilities and understand
the various outputs and interventions needed. The approach is followed by
testing the model on proposed values and interventions through different
assumptions and gathering more information and lessons.

7 Optimize, The approach at this stage should be optimized by assessing risks (market,
Review and financial and social risks) and provide mitigation measures. Review the
Retest the model by ensuring all sustainability requirements and supporting services
Delivery Model are in place. This will be followed by retesting and finalizing the delivery
model.

8 Plan and The approach at this stage will develop an implementation work-plan and
Operationalize an M&E plan to make the delivery model operational. The implementation
Implementation should start with pilot and scale up with time after getting encouraging
of Delivery outcomes provided that financial resources and other support are in place.
Model

9 Select The team of professionals and support staff has to be selected to ensure
Implementers barriers along the market chain are addressed and operations in the
model are delivered according to the requirements and conditions in the
appliance market.
 31

The delivery model will be implemented in a situation where market

is absent, fragile or thriving in Tanzania. The approach should be able
to identify drivers which will attract customers to buy appliances. This
situation requires support services for scaling up the market. The
support could be in the form of economic, both monetary and in-kind
(e.g. government subsidies or incentives and donor funding), and
could also include capacity building and advocacy to influence public
energy related policies, strategies, initiatives, etc.

4.3 Mapping and Tools for Supporting Approach for Designing

EPC Delivery Model
The approach above is further illustrated through EPC delivery
system and supporting tools. The delivery model is integrated in the
system. The EPC delivery system enables developer to identify key
components of the approach that supports the delivery of modern
energy cooking appliances and services to high, medium and low
income clusters of people in the community. The delivery model is
supported by two components:

4.3.1 Mapping Modern Energy Cooking Delivery System

The mapping of delivery system is made up of five key building blocks
for ensuring sustainable supply of cooking energy appliances and
services to the customers.
 32

Chart 3: Map of EPC/Modern Energy Cooking Delivery System

ENABLING ENVIRONMENT
External environment such as government or
public policies, strategies (e.g. policies,
regulations, subsidies, availability of credit,
incentives such as tax exemption) and
infrastructure (grid, mini-grid, solar PV system) SOCIO-ECONOMIC
AND CULTURAL
MARKET SYSTEM FACTORS
Market Chain, (e.g. Local
Market actors, awareness,
types and knowledge,
availability of experiences,
appliances, EPC DELIVERY OR BUSINESS MODEL perception,
demand, supply, Modern energy cooking technologies/services, behavior,
distributions, production /supplier/ procurement/importation,
retailing, prices, traditions, gender,
distribution and retailing (e.g. securing finance, payment
alternative willingness, ability
systems, system maintenance)
products, to pay, enterprises,
customer suppliers’
relationships, size capacity,
of the market preferences for
willingness to pay, certain types of
taxes, inflation, modern cooking
competitions, etc appliances/servic
SUPPORT SERVICES
es, foods or
Any external support that the delivery model
need due to weaknesses in the enabling practices)
environment (e.g. start-up grants, micro-
finance, capacity building, advocacy,
awareness raising, after sale services
partnership)

Mapping of MECS/EPC delivery system, according to chart 3 above,

involves assessment of socio-economic and cultural factors of
customers and the market system. These will enable to design delivery
model required in a specific areas and environment. According to
barriers and gaps which will be observed in the market systems
together with socio-economic and cultural factors, the support
services are identified and interventions developed for supporting
actors in the market. The system allows also to identify type of enabling
environment required for MECS activities.

4.3.2 Tools Required for Designing EPC Delivery Model

The tools which may support MECS delivery model and that are
required for analysis of information to the delivery model are:

i. EPC Delivery Model Map

The tool is an expansion of the EPC delivery model framework
and details some of the key factors for analysis. These are
 33

adapted from the ‘business model canvas ‘framework. The EPC

Delivery Model Map also integrate the building blocks for the
‘enabling environment’, ‘socio-cultural context’ and ‘supporting
services’ with a set of factors which are illustrations of what issues
to consider when designing the EPC delivery model. The delivery
model map is attached as Appendix B.

ii. Business Model Canvas Framework

The business model canvas as a tool which is used in businesses
services was also used to support EPC delivery model. It was
used as a framework to guide decision making in the EPC delivery
model’s value added; the types of relationships it creates with
partners (everyone who takes part in the delivery model) and end
users (customers); and the resources and activities required to
implement it. A specific ‘socio-environmental benefits’ element
has also been added in the ‘accounting’ building block for the
measurement of non-monetary targets. However, elements
have been added so that the socio-cultural context and enabling
environment can be taken into consideration. The business model
canvas is attached as appendix A

iii. Actors Mapping Tool

The tool is used to assess the actors and their relationship to the
EPC delivery system. All actors in the market system including
market functionaries, support services and enabling environment
are supposed to be mapped by this tool. Actors with closer
relationship are located near to the centre which means are near
to the EPC delivery system. Other actors will be located in the
tool depending on their influence to the delivery system. The
actors near to delivery system have high possibility of becoming
potential partners or customers in the EPC delivery model. These
could either be categorised into suppliers, end-users or MECS
international and local supporting partners. The actors analysis
tool is attached as annex C.
34

iv. Need Assessment Tool

The participatory tools are required in order to assess needs EPC
end users in rural, peri-urban and urban areas. The tools which
were used for this research to identify and assess needs of actors
in rural area were Participatory Rural Appraisal (PRA) tools. The PRA
tools and approaches incorporated the normative knowledge and
opinions of rural customers in the identification of socio-economic,
cultural issues and planning and management of modern cooking
energy services. Different participatory approaches including
focus groups discussions, household surveys were used to get
needs of potential end-users.

v. Risk Assessment Tool

The risk assessment tool is based on the principle that a risk has
two primary dimensions. These are probability of occurrence
and size of impact. The tool allows user to rate potential risks
on these two dimensions. The probability that a risk will occur
is represented on one axis of the chart and the impact of the
risk. Those two dimensions are plotted for a particular risk on the
tool. This gives a quick, clear view of the priority that is needed by
each risk and will lead to decision on what resources are required
to manage that particular risk. The table is used to present
assessment from this tool showing type of risk, its impact, priority,
mitigation measures, etc. The risks assessment results are used
to optimise EPC delivery model. The tool for assessing risks in the
delivery system is attached as appendix D. The table below shows
risks assessed through this research study:
 35

Table 6: Risks Assessment in the EPC Delivery System (originated from

appendix D)
S. No. Risks Level of Impact Mitigation Measures
Occurrence

1 High demand High High Ensure bulky importation of

compared to supply of EPCs
EPCs

2 Low affordability of low High Medium Linked with MFIs and include
income customers in the credits in the bills

3 EPC technical defaults Medium Medium Provision of after sale services,

spares and capacity building of
local technicians

4 Fluctuation of Foreign Medium High Maintain foreign currency

Currency bank account

5 Fluctuation of EPC Low Medium Import bulky, store and

production in the explore more sources in the
country of origin long term produce locally.

4.4 Case Studies for Sustainable Delivery Models for Rural and
Urban Areas
The case studies presented in this section are using/piloting approach
developed by this research project for delivering EPCs to end-users
in urban, peri-urban and rural communities. These cases show how
these models have been adjusted to support delivery of EPCs to end-
users. These models are as described hereunder:

4.4.1 Delivery Model for Rural Settings with Mini-Grids

i. Project Description
The model for delivering EPCs in rural settings with mini-grids was
developed according to the information collected at Kitaita and
Songambele Villages at Gairo District, Morogoro Region. These
are villages with access to solar mini-grid electricity operated by
Power Gen Company. The technology is based on a centralised
solar PV-battery system with electricity distribution grid connecting
households in two villages. Customers have ability to pre-pay on
a Pay as You Go (PAYG) basis for clean, round-the-clock AC power
using their mobile phones through modular micro-grid systems.
36

ii. Methodology
The information was
collected through
Participatory Rural Appraisal
(PRA), households’ surveys,
focus group discussions
and demonstrations of
how to use EPCs. Issues
covered during data
collection were assessment
of rural socio-economic and
cultural factors, market
actors, barriers, enablers,
drivers, demand, supply,
affordability, willingness
to pay, alternatives, wealth
ranking, income variation,
gender, attitudes on new
products, social cohesion,
leadership, market and
context, preferences,
perception and customary
practices.
The team explored credit services in two villages and three types of
micro financial services exist in the project area. These are credits
through PowerGen, credits through village leaders and credits
through Village Community Bank (VICOBA). The team decided
to leave a few EPCs (6) in the village (with upfront payments of
20% of EPC price and signing of contract) to test market while
collecting information on response of villagers to the purchase of
the EPC appliances. The repayment of EPCs will be paid through
mobile payment system in four instalments for a period of how
many months.

iii. Drivers
The main driver for adoption of EPCs is availability of mini-grid and
 37

scarcity of fuel for cooking. The main fuels used for cooking at the
villages are firewood and charcoal which are used in traditional
stoves of metal charcoal stoves and three stone fire-places. The
villagers (women and girls) take about 7 to 8 hours to travel to
another region (Manyara Region) where natural woodland forests
are available for firewood collection. A bundle of firewood is used for
three days before they go back to the forest to recollect firewood.

iv. Socio-Economic and Cultural Context

Some of the socio-economic and cultural factors observed
in Kitaita and Songambele are low awareness of cooking with
electricity, low capacity of using EPCs, seasonality of income, low
affordability, type of food, local cooking practices, low willingness
to pay, high electricity tariffs, etc. Reduced time for fuel collection
and maintaining the taste of food by new appliance (EPCs) in rural
settings are important factors for rural end-users. The barriers for
most of end-users are income which is seasonal which created
fear of paying EPCs and electricity in
rural areas.
The villagers
(especially women
v. Enabling Environment
and girls) in some
All energy related existing policies,
rural settings take
strategies and programmes
are supporting the use of wood about 7 to 8 hours
alternatives as energy for cooking. to travel to another
The support to end users for buying region where
appliances through credit services or natural woodland
external supports from individuals,
donors or government are specifically
forests are available
critical in enabling efficient electric for firewood
pressure cookers to be adopted collection. A bundle
by low income rural end-users. of firewood is used
The government willingness to use
for three days
subsidies or reform taxes of EPCs will
stimulate early adoption of EPCs in before they go back
rural areas. to the forest to
recollect firewood.
38

vi. Support Services

The support services required in
rural areas such as Kitaita and
The market for
Songambele are: awareness EPCs is likely
creation, promotion of EPCs, to be financially
availability of EPCs, capacity successfully if will
building trainings, credit services,
start with high and
lowering of electric tariffs, repair
and maintenance of appliances. . middle income
households in the
vii. Delivery Model rural areas. It will be
There is high potential of adopting easier to reach poor
EPCs in rural settings (like Kitaita segments once
and Songambele) due to scarcity of market is already
fuels for cooking, although income established when
for villagers is seasonal because
it is based on agricultural crop
trust of the EPCs
harvesting period. Therefore, any use is high in the
EPCs which will be delivered to community.
end-users during off-season will be
supplied through credit services.
There are high chances that the end
users will be willing to pay and afford EPCs during harvesting time.
The appropriate market chain to rural settings is to get supplier at
the district capital that will retail EPCs to the rural and urban areas
with both national and mini-grids during harvesting time
The model must involve importation of EPCs from external
markets (mostly from China), through a domestic appliance dealer
in the main commercial capital city of Dar es Salaam. There is a
possibility of selecting potential suppliers at district level who will
be a distributor of EPCs in the district especially areas with mini-
grids. The supplier at district centre may retail those appliances in
rural areas during harvesting time or through credit services. The
value proposition, customer relations, cost structure and revenue
streams were determined through PRA and capacity building
was conducted by TaTEDO. The model also requires trained
 39

technicians at the district centre who will provide EPC after sales
services.

viii. Suggestions
The market for EPCs is likely to be financially successfully if will
start with high and middle income households in the rural areas.
It will be easier to reach poor segments once market is already
established when trust of the EPCs use is high in the community.
Low income (affordability) is not the only socio-cultural factor that
affect uptake but also less willingness to pay for clean cooking
technologies to some people in rural areas which are non-smoke
as they are used to deter insects and preserve crops.

4.4.2 Delivery Model for Urban Setting with the National Grid

i. Overview
The EPCS delivery model for urban
areas was developed from research
activities conducted in urban areas
Dar es Salaam
of Kinondoni and Ubungo Districts in Region has the
Dar es Salaam Region. Dar es Salaam highest percentage
Region has the highest percentage (73.5 percent)
(73.5 percent) of households using
of households
charcoal for cooking (NBS, 2017).
Although, the whole urban area of using charcoal
Dar es Salaam region is electrified, for cooking (NBS,
only 7.2% of households are using 2017). Although,
electricity for cooking. The natural the whole urban
forests in Tanzania are excessively
encroached for charcoal production
area of Dar es
caused by increased demand Salaam region is
crucially in Dar es Salaam which electrified, only
consumes more than 50 percent 7.2% of households
of all the charcoal produced in the
are using electricity
country. Introduction of EPCS in Dar
es Salaam Region will cut down a large for cooking.
proportion of charcoal consumption,
40

if modern energy cooking services will be adopted by a large

number of the households.

ii. Methodology
The information was collected through household surveys and
focus group discussions from Kinondoni and Ubungo Districts.
The information collected from end-users is related to demand
and use of the modern cooking energy appliances and services.
The information includes socio-economic and cultural issues
such as cooking behaviours, frequencies of cooking, time used
for cooking, processes used for cooking, appliances preferred
by users, etc. Other information are the potential market actors
in their areas, awareness, capacity of using EPCs, willingness to
pay, credit facilities, prices of appliances, barriers and drivers of
acquiring the electric cooking energy appliances and services.

iii. Drivers
The complains of
The high cost of energy for
cooking is the main driver of people in many
adoption of modern energy households were
cooking services in the urban high tariff s from the
areas of Dar es Salaam Region. national electric
Several households in the city
are practising energy stacking
utility (TANESCO)
in their household to reduce and power blackouts
household energy budgets. or power cuts which
Introduction of EPCS in urban necessitates end
areas will enable people to cut
down household energy budget
users to apply fuel
used for cooking. stacking.

iv. Socio-Economic and Cultural Context

The urban setting surveyed for this research has a large
proportion of high income households. Many of them have tried
to use electricity for cooking by using electric hotplate cookers,
microwaves and hot water kettles but it was expensive and they
 41

ended up with high energy bills and use of sub-standard electric

appliances. Some households have ability to buy Electric Pressure
Cookers (EPCs) in cash or through credit services. There are high
chances that households which will acquire appliances on credit
basis in urban settings will have high recovery rate of their credits.
However, several people in urban households are not aware of
EPCs. Several households in urban settings are occupied by staff
from different government and private sector firms. Cooking in
several households is performed by housekeepers (who are not
decision makers in the households). The most likely places where
someone could meet many of people for appliances delivery is
at their workplaces. The barrier which was observed for urban
settings was size of electric pressure cookers. Some of the
households were interested in EPCs of large sizes (more than 6
litres) than those which are in the market and probably two pots.

v. Enabling Environment
All energy related existing policies, strategies and programmes
are supporting the use of wood alternatives and clean energy for
cooking. The standards and quality of appliances were the main
concerns of people in the high income households. The use of
electricity is associated with high energy budgets. The complains
of people in many households were high tariffs from the national
electric utility (TANESCO) and power blackouts or power cuts
which necessitates end users to apply fuel stacking. They need
to be ensured of reliability of electricity from the national grids all
the time and the situation could be mitigated by power utility.

vi. Support Services

The support services required in urban areas such as Kinondoni
District include awareness raising, promotion of EPCs, availability
of EPCs, capacity building trainings, credit services, repair and
maintenance of appliances. Awareness and promotion could
be undertaken through local TVs, radio, social media and video
documentary. All these activities should be availed to end users in
order to speed up scaling up of modern energy cooking services
in Tanzania.
42

vii. Delivery Model

There is high potential of adopting EPCs and other modern energy
cooking appliances in similar urban settings due to high household
cooking budgets and a long time used for meal preparation in
households. Several market chains can be used in the urban
areas which include acquiring EPCs from supermarkets, dealers,
distributors and retailers, etc. The supply of EPCs at the moment
is very low and is growing according to the emergent demand in
the market.
The EPCs manufacturers are companies which are outside the
country mostly in China, Japan and South Africa. The EPCs which
are in the local markets are imported from external markets,
through local importers in the main commercial capital city of Dar
es Salaam. There are different domestic appliances dealers in the
urban areas and increased demand of EPCs will pass signal to the
market and there is high chances of immediate response to the
market demand.
However, there is possibility of selecting dealers with appropriate
appliances that will be used to distribute EPCs to the end-users
in the urban areas. Product promotion and capacity building
are important support services for scaling up delivery of EPCs
in urban areas. The value proposition, customer relations, cost
structure and revenue streams will be determined through
capacity building training which may be availed by NGOs or trained
LGA staff (community development officers). There is a need for
trained technicians in urban areas to provide after sales services.

viii. Suggestions
At the moment, EPCs are imported by importers, dealers who
could supply EPCs according to available amount of their financial
capitals. The need for developing short market chain in order to
increase the market margin and reduce prices for the end-users
should be emphasized. The distributor who is dealing directly with
end-users could import directly from external markets. There is
a need for after sales services for EPCs otherwise lack of those
services will reduce uptake of these appliances.
 43

5.0 Limitations of the Innovation/Approach/Design/

System
The approach for designing delivery models of the Modern Energy
Cooking Services is limited to the EPCs and not to other cooking
energy appliances and services. However, the approach could be
slightly adjusted and adapted for other cooking energy appliances
and services. The approach will also focus and associated with use
of electricity for cooking. The research is focusing on the electric
pressure cookers which at the moment in Tanzania are used by end
users at household level and not by SMEs and Institutions.
These limitations can be overcome by modifying the approach for
other energy services. The use of electric pressure cookers in SMEs
and institutions will require larger size appliances which require
production of those appliances by manufacturers.

6.0 Practical Applications of the Concept to the

National Cooking Energy System
The project focus is to facilitate interested stakeholders to adopt a
delivery/business model of supplying appliances which will support
increased and efficient use of electricity for cooking. Clean and
efficient cooking energy services are issues which are stipulated in the
national energy policy (2015) and SE4All Action Agenda of Tanzania.
The practical application of this concept to the national efforts will
improve the energy cooking sector through different delivery models
for different market segments. Some of these delivery models include:
Delivery/business models of modern cooking services for: Mini-Grid
Systems, On-Grid Rural Areas, On Grid Urban and Peri-Urban Areas
and stand-alone solar PV systems.
The approach may also be applied for solar power banks in urban,
peri-urban and rural areas. Area specific socio-economic and cultural
context may determine the delivery/business models to be adopted.
However, the practical application will also be to implement the
models and recommendations from this study to develop a thriving
market of EPCs in Tanzania.
44

7.0 Next Steps

7.1 Next Intervention Include the Costs, Time and Resources

Required for Next Steps of Development /Implementation
The next steps will build on efforts
to implement the findings and
recommendations of this research The practical
project and widen focus of this application of the
innovation to other areas. The MECS approach for designing
team at TaTEDO in collaboration
delivery models for
with different partners will continue
with the efforts of addressing the MECS in Tanzania
barriers identified along the EPCs will be to improve the
market chain in order to contribute energy cooking sector
to the efforts of developing market through different
of EPCs in Tanzania. This will be
performed through implementation
market systems for
of a sustainable modern energy different customer
cooking delivery/business models segments.
in urban and rural settings. Efforts
will be made to collaboratively
address market barriers, foster an enabling environment and provide
support services. The efforts will also contribute to enhance the EPCs
demand and strengthen supply. The resources required for the next
steps of the implementation include human resources, supporting
facilities such as stationeries and transport, bulky acquisition of
efficient electric cooking appliances such as electric pressure cookers,
and battery supported eCook systems and credit facilities. There will
be activities for piloting approach for designing EPC Delivery Models
in rural, peri-urban and urban areas by providing support services
to support actors along market chains and advocacy and piloting
different delivery/business models in urban and rural settings.
The future prospects of the research on Approach to Designing
Delivery Models for MECS has goal of transforming the cooking
sector in Tanzania by ensuring end-users in the community are using
efficient cooking appliances. The following are selected interventions
which will perpetuate MECS efforts in Tanzania:
 45

• Scale up Market of Efficient Modern Cooking Appliances in

Tanzania
• Invest in Efficient Electric Cooking Appliances Manufacturing in
Tanzania
• Develop Education Curriculum for MECS in Tanzania
• Transforming Tanzania Cooking Sector through Scale up of
Modern Energy cooking Services
• Advocacy for MECS Policy Recommendations
» Encouraging suppliers to import quality and efficient electric
cooking appliances,
» Incentivised local manufacturers once market has developed
» Support establishment of service networks (spare parts,
expertise for repair, etc)
» Support consumers to repay high initial costs through micro-
financing
» Support consumers to understand the benefits and lower
behavioural change barriers

The work-plan with interventions, components, geographical focus

and budgets are attached as appendix E.

7.2 Funding Planning to Apply for the Next Steps such as EU, DFID
The funding will be solicited from different sources willing to support
the idea of enhancing markets of efficient and clean modern energy
cooking services. The EU and DFID through MECs Programme will be
important sources of the funding through the MECS programme and
other initiatives.

7.3 Partnership Developments and New Investors Engagement.

The next steps will also focus to develop partnership with different
actors along the market chain including; local partners from the
Government, Local Government, Private Sector and Community.
Other institutions and organisations to provide financial support will
be approached from the development partners and investors who will
be interested to develop business enterprises and partnerships for
modern energy cooking appliances and services market development.
46

8.0 Dissemination Plan

The dissemination of the final research report can be broken down
into four segments of interested stakeholders at local, national,
regional and international levels. The dissemination will be undertaken
through meetings, workshops, seminars, symposiums, newsletters,
newspapers, social media, emails and websites. The dissemination
will be geared towards awareness creation, learning and business
development. The findings of the project as compiled in the report
will be disseminated to different stakeholders and partners as shown
hereunder:
• The local partners who are expecting to use the report include
community, LGAs, Vocational Institutes, local energy NGOs, CBOs
and Private Sector Companies. The information in the report will
help them to adopt modern energy cooking services and apply
resources for developing their projects, conduct trainings and
planning MECS activities at local levels.

• National partners who will use the report for different purposes
including relevant ministries, government institutions/agencies,
academic Institutions, national networks/alliances and financial
institutions. The information will be used to provide inputs
during policy reviews and cooking energy decision making in
the government institutions, education, project development,
trainings and awareness on the types of business which could
emanate from MECS technologies.

• The regional partners who are expected to use the report are
regional networks/alliances, research and academic institutions,
energy departments of regional bodies (EAC and SADC) and
organisations both private and state owned. The information will
be used more for learning purposes, project development and
sharing experience on different strategies and solutions towards
increasing access to modern energy cooking technologies through
viable business delivery models.

• Different International partners who are expected to use findings

from the report for different purposes. The international partners
expected to get the report through online communication media
 47

such as emails and websites. The expected international partners

include bilateral and multilateral organisations interested to
clean cooking services such as foundations, research institutions,
academic institutions and international based organisations. The
information will help to understand the modern energy cooking
situation in Tanzania, the barriers and the supports required
in the local context and can be a useful tool to make informed
decision. The information may also be used as basis of mobilizing
more financial resources for new and on-going initiatives towards
achieving the universal access to cooking energy services.

Dissemination of similar MECS outcomes has been done through

different projects. MECS dissemination has been carried out through
various meetings, capacity building trainings, trade fairs, workshops,
seminars, symposiums and websites. For the past one year, TaTEDO
has managed to disseminate more than 200 EPCs to end-users.
The information about MECS has been shared with the government
officials (at both national and district levels) and end-users in urban
and rural areas. The main focus during the dissemination was to
create awareness and train to use EPCs and existence of the modern
cooking energy solutions, the associated benefits in terms of health,
cost saving and time saved compared to other solutions. Feedbacks
from the end-users have been regularly received and most of them
have been requesting for more information on highly efficient electric
cooking appliances, their operations and how to acquire them. The
response and purchase of appliances from different clients and
customers is indication that modern energy cooking appliances and
services has huge potential market in Tanzania. . The EPCs end-users
feedback was performed during and after capacity building trainings.
The participants who received capacity building and demonstration
are coming back with more end-users who are looking for similar
trainings and modern energy cooking appliances. Other feedbacks
include the need for larger size of the EPCs, Multi-functional EPCs
(such as deep frying, roasting, etc), after sale services provisions, etc.
48

9.0 Conclusion
The MECS TRIID research project implemented in urban, peri-urban
and rural areas has generated a number of findings and lessons
that can lead to other research, development support and target
investments. The project has developed an approach for designing
and developing delivery models for modern energy cooking services.
The future prospects of this approach are based on the ability of using
the approach for supporting development of MECS delivery models
in other areas.
The approach is a tool for supporting the transition to modern,
efficient and clean cooking services that contributes to fundamental
development benefits, including improving people’s health, reducing
air pollution, and enabling mothers to spend more time with their
families and pursue economic opportunities.
The focus of this efforts now on scaling up supply and demand of
modern energy cooking appliances and services through innovative
market-based approaches and mobilize financing in order to apply
delivery/business models from approach researched through this
project to real lives of people in the community.
49
50
References

Ben Garside and Sarah Wykes (2017): Planning Pro-Poor Energy Services for
Maximum Impact: The Energy Delivery Model Toolkit, CAFOD, IIED
Boiling Point (Issue 63) (2014):Energy Service Delivery Models, HEDON
Emma Wilson, Rachel Godfrey Wood and Ben Garside (2012): Sustainable
Markets Sustainable Energy for All, Linking Poor Communities to Modern
Energy Services, Working Paper No 1, Linking World Series, IIED
Jon Leary (2019): The Viability of Cooking with Electricity in Sub-Saharan
Africa and South/Southeast Asia – a Cost Perspective, GAMOS,
Leslie Cordes (2011): Igniting Change: A Strategy for Universal Adoption of
Clean Cookstoves and Fuels, Global Alliance for Clean Cookstoves
NBS (2017): Energy Access Situation Report 2016, Tanzania Mainland, NBS/
REA
Raffaella Bellanca and Ben Garside (2013): Approach to Designing Energy
Delivery Models that Work for People Living in Poverty, CAFOD, IIED
REMP (2017): Tanzania Rural Energy Master Plan Development, REA
S. Bachelor, J. Leary, E. Sawe, S. Sago, A. Minja, N. Scott and J. Shuma (2018):
eCook Tanzania Country Report, TaTEDO, UL, US, Gamos (DFID)
Toby D. Couture and Dr. David Jacobs (2019): Beyond Fire – How to Achieve
Electric Cooking, HIVOS
51
 Appendixes 52

Appendix A: EPC Business Model Canvas Framework

Key Partners Key Activities Value Proposition End-User Relationships End-User Segments

- Who are MECS What Key Activities do EPC Value - What value does EPC deliver - What type of relationship does each of - For who are the value is
Key Partners? Propositions requires for Supply to the customer? Customer Segments expect us to establish and created?
Chains, customer relationships maintain with them?
- Who are MECS - Which customer’s problems - Who are the most
and revenue streams?
key suppliers? are we helping to solve? - Which ones have been established? important customers?
- Which Key Categories - What bundles of MECS - How are they integrated with the rest of our
Resources appliances and services are business model?
are MECS - Marketing we offering to each Customer Types of Segment
- How costly are they?
acquiring from - Problem Solving Segment? - Mass Market
partners? - Platform/Network - Which customer needs are we Examples
- Niche Market
- Which Key satisfying? - Personal assistance - Segmented
Activities
These are activities for market - Dedicated Personal Assistance - Diversified
do partners
perform? actors and end users - Self-Service - Multi-sided Platform
- Automated Services
- Communities
Optimization and Characteristics - Co-creation
economy
Key Resources - Newness
Reduction of risk Market Chains
- Performance
and uncertainty - What Key Resources do EPC - Through which Market Chains do EPC Customer
- Customization
Value Propositions require? Segments want to be reached?
Acquisition - “Getting the Job Done”
of particular - Resources for supply chains? - How are we reaching them now?
Resources for Customer - Design
resources and - Brand/Status - How are EPC supply chains integrated?
activities Relationships?
- Price - Which ones work best?
- Resource size for achieving
Revenue Streams? - Cost Reduction - Which ones are most cost-efficient?
- Risk Reduction - How those chains are integrated with customer
- Accessibility routines?
Types of Resources
- Convenience/Usability Chain phases:
- Physical
1. Awareness: How do we raise awareness about
- Intellectual (brand) EPC and services?
- Financial 2. Evaluation: How do we help customers evaluate
suppliers’ value proposition?
3. Purchase: How do we allow customers to
purchase specific appliances and services?
4. Delivery: How do we deliver a Value Proposition
to customers?
5. After sales: How do we provide post-purchase
customer support?
Cost Structures Revenue Streams
- What are the most important costs inherent in the EPC delivery model? - For what value are customers really willing to pay?
- Which Key Resources are most expensive? - For what do they currently pay?
- Which Key Activities are most expensive? - How are they currently paying?
Cost Driven (leanest cost structure, low price value proposition, maximum automation, - How would they prefer to pay?
extensive outsourcing) - How much does each Revenue Stream contribute to overall revenues?
Value Driven ( focused on value creation, premium value proposition)
sample characteristics: Revenue types

Fixed Costs (salaries, rents, utilities) Type Fixed Pricing Dynamic Pricing
Variable costs Product sale List Price Negotiation(
Product feature
bargaining)
Economies of scale Usage fee
dependent Yield Management
Economies of scope Subscription
Customer
Fees segment Real-time-Market
dependent
Volume
dependent
53
54

Appendix B: The EPC Delivery Model Map

Socio –Economic and Cultural Context
End-user food
End-user Service A�tudes toward
Local awareness, preferences and modalities
Service modali�es Willingness and
preferences and Introduc�on of new
skills and capacity (e.g. cash, credit, ability to pay
percep�on
Customary (e.g. cash, technologies
use of mobile
i credit, use of
banking;
mobile banking;
Enterprises,
- Gender supplier capacity Social cohesion/
End user knowledge, Willingness to Social cohesion
Gender Preferences towards
average income, income /tradi�ons
Con�lict /
Rela�onships
Relationships appliances/services
varia�on etc Pay for cooking Conflict
services)

Support Services

Micro-finance Capacity Start-up Awareness

Advocacy
/Credit Services Building Grants Crea�on

End-Users
Value Proposi�on
Segments Channels Relationships
The collec�on of electric Mass/Niche Awareness, educa�on, Personal, self-
cooking appliances and proposi�on, purchase, service, co-
services the delivery model delivery, a�er sales crea�on
offers in order to meet the
needs and wants of end users

Enhanced: performance, Delivery Infrastructure

customisa�on, design,
brand/status, price, risk Activities Stakeholders
reduc�on, Marke�ng, Resources Op�mise, reduce
convenience/usability problem solving, Physical, intellectual, risk and acquire
pla�orm human, financial resources

Accounting

Revenues Benefits
Costs
- Appliances/ Social and
Cost/value driven
fees/license Environmental benefits

Enabling Environment

Infrastructure Institutions
Economic Policies and Laws Transport, communica�ons, Level of governance,
Trading and quality standards, grid coverage transparency
rights of access to natural
resources, property and land
tenure, tax and tariff regimes,
business regula�on, tax Global trends Availability of Electricity
exemp�ons, government Appliance prices, DP policies, Grid, mini-grid, solar PV
Incen�ves Interna�onal standards, interna�onal systems, reliability of energy
markets, carbon markets services
 55

Appendix C: Actors Analysis Tool

Research institutions

Grass-root Micro-
Finance Institutions

Energy
CSOs EPC
Suppliers
REA Gender
organisation Food
Vendors
Gov. Staff
Regional FI Staff
Bodies EPC Financial
TaTEDO
Delivery Institution
MECS System DPs
Partners
LU

Private Sector PS staff Households

Energy Comp Gamos

EPC Distributors

Government Ministries

Environmental organizations

The tool could be used to identify partners and customers of EPCs

in specific geographic areas. The relationship of partners and
customers to EPC delivery system is represented pictorially by this
tool. The stakeholders with close relationship are near to the centre.
The weak relationship is indicated by distance of the stakeholders
from the centre to the periphery. The stakeholders are separated
and illustrated in a tabular form to separate partners and customers,
including their preferences, roles and needs.
56
 57

Appendix D: Risk Assessment Tool

High
High demand
compared to
supply of EPCs
Medium Level Risk High Level Risk

EPC technical
Fluctua�on of
defaults Foreign Currency

Low affordability
Probability of Occurrence

for low income

customers

Low Level Risk Medium Level Risk

Fluctua�on of EPC
produc�on in the
country of origin
Low

Low High
Impact of Risk

The Risk Assessment Tool (RAT) is used to show the impact and
probability of occurrence of the risks. The procedures of using this
tool start with identification of risks, which is followed by assessing
them in terms of their occurrence and impact. The risks will fall in low,
medium and high risks. The table should used to present assessment
from this tool showing type of risk, its impact, priority, mitigation
measures, etc. The risk of high impact should be given high priority,
followed by medium risks and low risks. Interventions should be
considered to mitigate these risks.
58

The risks could be identified by using business risks identification

framework. There are different risks which could be assessed by
using this tool as listed hereunder:
• Changing customer behaviour and expectations.
• Actual value proposition delivered declines leading to loss of
customers or inability to attract new customers.
• Service provision issues (Quality Control).
• Diminish the effectiveness of market chains due to changing
behavioural patterns.
• Unexpected Cost increases in supporting the customer
relationship.
• Reducing market share and/or suppressing margins.

The risk assessment tool is supposed to support the whole

risk management capability, namely identification of key risks,
quantification and finally management of those risks. The motivation
to develop delivery model risk management comes from diverse
spheres of economic activity as business models are central in most
enterprises.
 59

Appendix E: Future Interventions Expected from

MECS TRIID Project
S. No. Interventions Geographical Costs
Focus (GBP)
1 Scale up Market of Efficient Modern Cooking Lake and 300,000
Appliances in Tanzania Southern
Highlands
Promote Electric Cooking Appliances in the Project
Areas
Capacity Building Trainings of Efficient Electric Cooking
Develop Market Chains for Supplying Electric Cooking
Appliances
Advocacy of subsidies and tax exemption for EPCs
Facilitate Supply of Electric Cooking Appliances through
Developed Market Chains to End-Users
2 Invest in Efficient Electric Cooking Appliances Dar es Salaam 1,200,000
Manufacturing in Tanzania for East Africa
Market
Preliminary and Legal Aspects of EPC Investment in
Tanzania
Set-up a Mutually Beneficial Partnership Between
Internal and External Investor
Construct Factory Infrastructure and Facilities
Procure and Install Machines for Appliance Production
Manage and Develop Production of MECS Appliances
3 Develop Education Curriculum for MECS in Tanzania High learning 150,000
institutions
Undertake MECS study for Education Curriculum and
Involved Stakeholders
Develop and Refine the Syllabus for MECS for High
Leading Institutions
Undertake Technical Meeting to Refine MECS
Curriculum
Pilot Curriculum in Selected MECS Courses
4 Transforming Tanzania Cooking Sector through The Whole 1,200,000
Scale up Modern Energy Services Country
Conduct Awareness campaign of EPCs in Tanzania
Undertake Technical and Business Capacity Building
Actors Along Market Chains
Develop Strategy for MECS in Tanzania
Facilitate Supply of EPCs along the market chains in the
country
Develop and Adopt Prototypes for Off-Grid Areas
60
 61

NOTES
62
NOTES
 MECS-TRIID Final Project Report
TaTEDO - Centre for Sustainable Energy Services Kinzudi,
Plot No 461-462/512-514
Near Mbezi Juu Lutheran Church,
Goba Ubungo P. O. Box 32794,
Dar es Salaam, Tanzania
Tel: +255-738-201498/+255-787-289868,
Email: [email protected]
Website: www.tatedo.org/www.tatedo.or.tz