Boosting Women-Owned Small Businesses’ Competitiveness through Energy Efficiency
Shamim Jaffar, a business owner in rural Uganda, had never learned how appliances like her refrigerator use electricity. “I had no idea what the temperature dial switch does,” she explained.
I didn’t expect that opening the fridge [for long periods] could have such an impact on its electricity consumption,” agreed Irene Tumusiime. “As a retail shop owner, I am constantly opening my fridge to serve cold drinks to customers.”
Business owner Irene Tumusiime shows off her shop in Uganda.
Energy Efficiency for Development
They are not alone. An estimated 54% of women business owners in Uganda have never done anything to save energy besides reducing the number of hours equipment is in use. Since most Ugandan power utilities only provide energy efficiency advice to domestic consumers, hardly any female business owners have been offered energy efficiency tips for commercial productive use of energy (PUE).
Women are particularly affected as they are twice as likely to work in the informal sector on tasks that could be made easier through use of electricity, and have less access to capital and financing opportunities.
USAID’s Energy Empowers East Africa (EEEA) program is helping women business owners understand how improved energy efficiency can affect their businesses’ performance.
According to the World Bank and the National Renewable Energy Lab, businesses typically see a 10% to 30% cost reduction as a result of these types of measures. The program seeks to unlock the benefits of modern energy access for women and enhance their role as change agents in promoting clean, affordable, and efficient energy use in East Africa.
In Uganda, USAID, and Berkeley Lab partnered with Clean Energy Enthusiasts to help women entrepreneurs upgrade to more efficient and productive electric equipment. After conducting a survey of small business owners on the challenges of accessing and financing efficient electric equipment, the team trained 240 women small business owners in eight districts across Uganda.
That training, over five days, also helped the women develop business plans that assess the cost and benefit of investing in productive and efficient electric equipment to scale up businesses. The training included equipment demonstrations, case studies, success stories from guest speakers, and group discussions.
“Now I know that even when the price of an equipment seems friendly, there perhaps could be a hidden agenda as regards power consumption,” says Joweria Nyandere, a fish vendor and training participant from the Kasese District. “Efficient equipment can appear expensive at the start but will save one on operational costs during the service life of equipment.”
Business planning and accounting are also important subjects for EEEA training, as less than a quarter of women business owners surveyed had any sort of business development training, which is critical to their ability to develop effective energy use plans.
Babra Aikirize, a restaurant and retail shop owner, stands in front of a refrigerator chest in her business. Babra said EEEA’s training has helped strengthen her business acumen.
Energy Efficiency for Development
“My shop literally feeds my family,” said Babra Aikirize, a restaurant and retail shop owner. “I get grocery items from the shop. If money is needed, I just get it from my business drawer. I do not keep records but I make the drawings almost on a daily basis.”
After learning about the importance of business records, she said, “I am going to be keen on noting not just my business expenses but also revenues so that I have an understanding of how the business stands.”
Other training participants also changed their accounting practices following the training, and some even noted their previous lack of recordkeeping had made their interactions with local authorities more difficult.
The training also created new networks of women entrepreneurs who support each other. After a session on marketing, Racheal Taremwa, who runs a milling business in Kasese District, received orders from other training participants and made contacts for future customers.
EEEA offers assistance on business plan development for a selected number of women entrepreneurs coupled with the opportunity to participate in matchmaking events with financing houses, equipment vendors, utility officers, government officials from the Ministries of Gender and Energy, and entrepreneurial support programs. These events are specifically designed to mobilize financing for projects expanding clean energy and energy efficiency.
This kind of support can make all the difference for women who are more accustomed to having to do everything on their own.
“After being disappointed in my marriage, it dawned on me that the responsibility of my child rested solely on me. I decided to start a retail shop so that I could raise my son,” said Grace Twebaze. Because of the training, she feels like she has more options. “With this PUE training, I’ve been opened up to the possibility of acquiring an ice cream machine which will undoubtedly step up my sales.”
For women like Grace and her fellow trainees, EEEA is creating pathways to greater prosperity and a more energy-efficient future.
About the Author
Christine Chumbler is a communications consultant supporting USAID’s Sharing Environment and Energy Knowledge project.