Clean cooking solutions remain one of the world's most underinvested health and environmental challenges. Approximately 2.3 billion people worldwide lack access to these solutions, leading to 3.2 million premature deaths every year and causing $2.4 trillion in environmental and local community damage. The Democratic Republic of Congo (DRC) is among the countries grappling with this challenge, with only three percent of its population having access to clean cooking solutions . Most of the population continues to rely on traditional charcoal and firewood stoves.

Bboxx, a data-driven super platform, has made significant strides in addressing global energy poverty and the absence of essential products and services, such as clean cooking gas and financial services. Since 2017, the company has been active in the DRC, installing and maintaining solar home systems and domestic appliances (lamps, chargers, radio, television, fridge). To date, Bboxx has deployed nearly 270,000 solar home systems, positively affecting the lives of nearly one million people, including approximately 100,000 in Goma, Bukavu and Kinshasa.

The inception of Bboxx Cook

In 2020, Bboxx received a $150,000 grant from the Incubation Challenge Fund of the Joint Program on the Sustainable Consumption and Partial Substitution of Wood Energy Program funded by the Central African Forest Initiative (CAFI). The joint programme is implemented by the UN Development Programme (UNDP) with the UN Capital Development Fund (UNCDF).

UNCDF manages these funds, enabling Bboxx to pilot and expand its clean cooking operations in Goma, and Bukavu. Investment from this Challenge Fund facilitated the company’s adaptation of its business model to the DRC context.

In December 2020, UNCDF awarded Bboxx with a $300,000 direct loan, aimed at expanding its access to financing and promoting state-of-the-art LPG-based solutions. This paved the way for the launch of Bboxx Cook in early 2021 in Goma. Bboxx Cook is a "pay-as-you-cook" asset financing model, integrating an LPG-powered gas cooker and cylinder set through Bboxx's proprietary internet of things (IoT) technology. The IoT tech allows Bboxx to track the average use of the gas cooker over time. With the pay-as-you-cook approach, customers pay a small down payment, a part of which goes towards paying down the equipment's principal cost. The remaining payments are spread out over a three-month to six-month period.

On 15 March 2021, Bboxx opened its first shop in Goma, selling 30 units. This was soon followed by the opening of four more shops in April (selling 200 units) and seven shops in May (selling 700 units). These shops were solely dedicated to cooking devices, supported by digital marketing efforts, live demonstrations, cooking contests, billboards, and roadshows. Each shop had one manager responsible for opening and closing the shop and welcoming and selling to clients. Bboxx employed five retail supervisors for every two shops with specific incentive schemes and around 10 sales agents per shop.

In the second quarter of 2021, Bboxx opened 12 shops across two cities (Goma and Bukavu) and recruited 30 staff and over 100 sales agents. In the third quarter of that year, Bboxx introduced different pricing options and new processes, such as loan collections, to increase the uptake of their clean cooking offerings. This pricing strategy paid off as July saw a significant boost in sales and the quarter closing with a portfolio of 3,270 customers across the two cities.

However, the volcano eruption in May 2021 temporarily interrupted operations, necessitating staff and operations evacuation to Bukavu. Post-eruption, sales were slow due to the local population’s reduced disposable income. Despite this setback, Bboxx was still able to increase its customer base to 5,377 by the end of November 2021, selling 22 tons of LPG in November alone. By end of second quarter 2023, Bboxx sold 18,728 LPG kits and over 750 tons of LPG.

The challenge

Bboxx Cook is contending with several market obstacles due to external factors, primarily the substantial rise in gasoline prices triggered by the pandemic and the Russian war in Ukraine. In March 2023, gasoline prices in the DRC stood at $1.37 per litre (or $5.18 per gallon).

Higher gas prices have slowed the pace at which new customers are purchasing Bboxx cook, and existing customers are using the product less. This indicates that Bboxx is bringing in less revenue through gas purchases, which was already a challenge for the company before 2023.

In-country factors such as VAT and import duties also strain the company’s business model. Due to irregularities in the application of VAT, Bboxx's products tend to be slightly more expensive than others.

Despite the challenges, Bboxx continues to employ various strategies to bolster its market position, while organizations like the UNDP and UNCDF continue to support the government to create an enabling environment for clean cooking market solutions. This includes a process to develop an LPG master plan and roadmap which will be enacted in national regulation. A drafting committee has been set up and led by the Ministry of Hydrocarbons with support from the UNCDF and UNDP Joint Programme. Various stakeholders’ consultations are underway to drive this process.

The solution – strategic shift

To mitigate high fixed costs (rent, security, etc.), Bboxx has transitioned to a distributor model, operating 120 gas cages for street sales and in-front of establishments. An in-house app monitors distributers stock and movements. Although this approach may decrease the sales rate, it aims to stabilize the client base while maintaining the strong client relationships it developed in the early stages of customer acquisition.

“The distributor model enables a wider outreach and proximity to our clients.” - Louis de Muylder, Head of Bboxx Cook

Bboxx has shown its agility in responding to market conditions. But the company will need to balance investor preferences while remaining profitable and sustainable. BBOXX's revised strategy for 2023 and beyond focuses on reducing operational costs, improved operational stability, and capitalizing on its customer base.

In a broader context, Bboxx's challenges reflect industry-wide issues, underlining the critical role policy and regulation can play in facilitating access to innovative solutions like Bboxx Cook. The government of the DRC is currently implementing initiatives to hasten electrification, with major international funds, led by the World Bank, backing these programs. A tax exemption would further expedite the adoption of clean cooking in the Congolese market.

Bboxx Cook's journey in the DRC to provide access to clean cooking technologies has been both inspiring and challenging. Through innovative approaches like the "pay-as-you-cook" model and IoT technology, Bboxx has positively impacted the lives of thousands in the DRC. However, obstacles such as economic downturns, rising gasoline prices, and in-country hurdles persist. Nonetheless, with strategic adaptations, Bboxx continues to strengthen its market position while the government leads efforts to create an enabling environment for clean cooking solutions. Bboxx's dedication to improving lives and its unwavering pursuit of a sustainable future highlight the transformative power of accessible clean cooking technologies for communities worldwide.

About Bboxx

Bboxx is a data-driven super platform, transforming lives and unlocking potential by connecting consumers and deploying innovative products across Africa.

Bboxx is championing the economic empowerment of Africa, accelerating the transition to the digital economy and creating new markets. We have built Bboxx Pulse®, a fully integrated operating system, and combined it with an extensive on-the-ground network to connect customers with clean energy, clean cooking, smartphones, e-mobility and selected financial products – many for the first time.

We are connecting both underserved rural communities and aspiring urban ones with a highly convenient and affordable way to access life-changing solutions, through last mile logistics and data-powered innovative financing methods. We offer our services on a pay-as-you-go basis to households, businesses, and communities, enabling African consumers to unlock their potential.

We build strategic partnerships with investors, utilities providers, global companies, and governments to accelerate growth and provide a wide range of products to consumers in Africa. Our partners are seizing a massive market opportunity by plugging into Bboxx – developed through green tech and big data and designed for scale.

Following the successful acquisition of solar energy frontrunner PEG Africa in 2022, Bboxx is now positively impacting the lives of more than 3.5 million people in 10 operating markets, directly contributing to 11 of the 17 United Nations Sustainable Development Goals. Bboxx and its group of companies is one of the largest networks in Africa, with over 4,000 staff across Africa and offices in the UK and Asia.

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For more information please contact:
Bboxx / Impact and Influence
Email: bboxx@impactandinfluence.global