Abstract

Solageo focused on extending access to solar energy systems and energy-efficient appliances to rural, off-grid and weak-grid communities in the developing world, initially in East Africa. Without access to a stable supply of electricity, local communities in developing regions faced considerable challenges in their daily lives, and the solar systems and solar-powered appliances had the potential to significantly improve their daily livelihoods. However, Joseph Fernandez, founder of Solageo, was not interested in a one-off donation of products. Donated goods meant for longer-term use, but without any supporting services, tended to have short-term impact. Joseph was keen to ensure that solar electricity services for rural, off-grid communities in East Africa and other developing countries would be sustainable, inclusive and ultimately contribute to long-term economic growth and economic development.

      To attain Solageo’s objectives, there were two key challenges for Joseph to address. First, while off-grid and weak-grid communities in the developing world were the intended destinations for Solageo’s products, global supply chains for its products originated at factories in Mainland China. There were many links in this global supply chain so it would be necessary to ensure those links were properly aligned and strongly connected. Second, it would also be important to ensure that those supply chains extended beyond major urban markets to rural, off-grid communities as well.

Learning Objectives

After analyzing and discussing this case, students are expected to be able to:

1. Distinguish between global supply chains and global value chains, and the ‘value additions’ that account for the difference.

2. Describe the different characteristics of markets in developing countries compared to developed regions of the world.

3. Elaborate on the impact of technology, particularly in developing regions of the world. 

4. Outline the challenges in extending global value chains to rural markets, including those off-the-grid, in developing regions, and the possible solutions in doing so effectively.