The race for compliance with energy transition- the new direction of the global energy sector is on. This is why firms like Koolboks, a tech start-up firm, with a vision to safeguard the environment, recently introduced solar-powered refrigeration system into the Nigerian and other African markets, Chikodi Okereocha reports.
A private sector-led push to contribute to Nigeria’s energy transition is on course. The entry of Koolboks, a tech start-up with a mission to bridge the refrigeration gap in Nigeria using solar-powered refrigeration system, into the Nigerian market may have added fillip to Nigeria’s energy transition race, at least, from the environmentally- friendly cooling technology space.
Koolboks, which is currently building its state-of-the-art assembly plant in Nigeria, with plans to penetrate other African markets, said with its target customers, market projections and compelling value proposition, it hopes to claim a substantial share of the refrigeration business in Nigeria and other African markets.
Speaking with The Nation to announce its entry into the Nigerian market, last week, the Co-founder of Koolboks, Mr. Ayoola Dominic, said although its target customers are Nigerian small scale businesses especially frozen food business owners, its mission was to make cooling affordable and accessible to every Nigerian.
Ayoola, while stating that the ultimately aim was to leverage Koolboks’ solar-powered refrigeration system to stimulate small-scale businesses and by extension, the Nigerian economy, noted that wastage of food and medications due to lack of refrigeration was one of the three major problems in Africa, including Nigeria.
His words: “Today, in Africa, we have three significant challenges. One; 40 per cent of food is wasted in emerging markets; also, we have about five out of every 10 patients that get to die due to vaccine spoilage. Two, we know that affording a refrigerator is usually expensive and when you have it, there is no electricity.
“Over 600 million people in sub-Saharan Africa today lack access to electricity and therefore lack access to refrigeration. And when they even have refrigeration, the cost of effectively owning one is usually an uneasy task, because after getting a refrigerator, they typically have to get a generator and then you start buying fuel to be able to run your refrigerator.
“Thirdly, of course we are talking of the environment; most of the refrigerants that are being used are dangerous refrigerants. They have been banned elsewhere, and these are 80,000 times more dangerous than carbon, but that is what still exists in African countries.”
Ayoola told The Nation that what Koolboks has done is provide the solution using sun and water which is very cheap. “We make it a ‘Pay-As-You-Go’ to make it easy for individuals and shop owners to pay on monthly, weekly or daily basis. You can pay as low as N12, 000 weekly or monthly,” he said.
Based on the affordability and accessible of its cooling system, the company’s market projection in Nigeria, according to Ayoola, is 7, 000 units. “Next year, we are looking at 15, 000 units, which I think is even small, but we are planning a gradual saturation of the market in Nigeria,” he added.
Accordingly, Koolboks is currently building its state-of-the-art assembly plant in Nigeria, starting from the scratch. Yet, Nigeria is not its only market in Africa. Ayoola said as part of its plans to penetrate other African countries, the company, which currently has presence in 18 countries, out of which 16 are in Africa, “Targets offices in Mozambique and Congo in the next two years.”
Koolboks’s expansion programme draws strength from its compelling value proposition. For instance, its offering can work with or without public power supply. Customers or users of the product have the ability to switch in-between both public and solar power supply. “Our campaign is ‘shame on public power supply’ because we have come to bridge the gap,” Ayoola emphasised.
However, the ability to switch in-between power sources is not the only game-changer. Koolboks freezers also come with four Light-Emitting Diode (LED) bulbs (a more environmentally-friendly alternative to incandescent bulbs) and four charging points which means that whether or not the user have public power, generator or not, Koolboks system will power his house with light and the same time charge his phones.
“So, Koolboks system provides light, energy and refrigeration in a single unit. That also means providing your family all these from natural energy source which is not diluted. It is like using the sun and water to power your home which you do not have to pay for. We give you the opportunity to pay for it every month for the next 24 months,” Ayoola explained, asking, “What else do you need?”
According to him, the value that comes with Koolboks is immeasurable for family and for small business owners who can sell all manner of drinks without having to sweat to get a generator and all that. “All we are doing is to empower struggling families and others. All they have to do is to approach us with a demand and show evidence that they can pay back and then they have it,” he stated.
That is not all. Users of Koolboks products can also monitor the temperature of the refrigerator and its battery. Again, Ayoola gave more insight into this unique offering: “We are able to monitor the temperature, monitor the battery voltage on the refrigerators. We do this because we figure out that most of our customers are small business owners who are into frozen food business.
“In frozen food business, you have to preserve the integrity of your products. You know meats are meant to be kept at a particular temperature and the same thing goes for fishes and others. They shouldn’t go beyond that temperature for you to be able to sell your foods fresh and clean or you poison people generally. So, the whole idea is for us to remotely monitor the temperature of the fridge.
“It’s just like someone or kidney that requires oxygen at a particular rate and you know what it means when he does not get it. Or what it means when a frozen food dealer or vaccine preserver go off power for four or five hours. They become understandably worried because they could lose a lot in terms of spoilage.
“That is why we monitor the temperature of the refrigerators and also monitor the battery voltage. There is no issue of transport; just monitor it and put a phone call and you will be asked to do this or that and it will be fine.
“That is the main reason we make sure to monitor our freezers. We understand that our customers deal on perishables. One good thing is that this is easy and can be done on the palm of your hand, with your phone from anywhere in the world. It is possible to do this even in areas where there is no network.”
The Koolboks Co-founder further explained that sometimes, the company knows that vaccines are more expensive than the refrigerator itself, so because of the value it places on it and for its customers’ satisfaction, it is absolutely necessary to know the temperature of its refrigerators and to also know the voltage of the batteries. “We do that to preserve the integrity of the vaccines and other goods,” he reiterated.