The project Lighting the Bottom of the Pyramid is market development effort that will not support a specific sponsor or organization. Rather, the project activities are designed to support all lighting and related organizations that decide to pursue this opportunity, and bring modern and affordable off-grid lighting solutions to the underserved segments of the population in Africa.

The project total operating cost is $6,400,000. Grant funds to cover the project operating costs are being provided by the Global Environment Facility, IFC, the Government of Norway, the European Commission, and the Government of Luxembourg. As necessary and appropriate to support companies entering this market, IFC intends to support directly or indirectly (e.g. mobilizing financing via micro-finance institutions) organizations seeking to enter and invest in this market.

The project will be implemented in Kenya and Ghana, covering all regions in these two countries, and urban, peri-urban and rural areas.

The project core development impact will be to increase, in a commercially and environmentally sustainable way, access to modern and affordable off-grid lighting services to the population in Kenya and Ghana that, today, can only access fuels for lighting. Access to modern lighting will positively impact these populations in several ways. Fuel-based lighting is an expensive solution that provides a low quality service of light, and hinders development. For instance, concerning households living standards, fuel-based lighting can account for as much as 15% of a household income. In addition, it is a safety hazard and common source of fires. Furthermore, it contributes to indoor air pollution and related health problems. Concerning social development, poor lighting directly impacts educational performance. Concerning small businesses, such as night street vendors, the high cost of fuel-based lighting limits evening operating hours, and the low quality of the light limits customer traffic and sales, hence the overall productivity of small businesses.

Access to modern and affordable off-grid lighting services can revert these conditions and significantly improve the living standards of households, and the productivity of very small businesses. The project targets for the pilot in Kenya and Ghana a market penetration of as much as 10% in 10 years, which translates into 1,500,000 end-users with modern, off-grid lighting products by 2015 in the two countries. The project has support from both governments, and extensive support from the private sector and stakeholders at large. To date, over 350 organizations have expressed interest in the project’s approach, and in taking part or being involved in its implementation.

IFC’s role in the project has been to:

- to identify the opportunity to increase access to modern off-grid lighting in Africa via the private sector,
- to use its international and regional experience with private companies to innovate on the approach and project design, catalyzing the private sector in a way that is attractive and compelling to the host countries, to the lighting industry, and to stakeholders,
- to engage in a credible way and attract over 350 organizations to participate in this initiative, and
- establish itself as a trusted and neutral broker and lead implementer of this initiative, bringing together and aligning the incentives of a large number of partners and stakeholders that allows this opportunity to increase energy access to happen.

As an advisory service project, Lighting the Bottom of the Pyramid is not subject to environmental review according to IFC''s Environmental and Social Review Procedure. At the request of the project implementation team, the Environment and Social Development Department''s Investment Support Group has reviewed the nature of the Lighting the Bottom of the Pyramid activities in question and determined, based on the review, that these activities in-and-of-themselves will have no negative environmental impacts. The Investment Support Group has, however, identified that the manufacture of WLED does present risks to workers that need to be managed. Additionally, the disposal of batteries associated with the lighting units also presents environmental risks. Because of these risks, the project will develop a code of conduct with respect to the manufacture of WLEDs that will be integrated into the parameters for establishing the industry and particularly private consortia involved in production. Additionally, as part of the policy and institution building, the project will work with the industry to find solutions for reducing risks from the batteries and their ultimate disposal.