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Report of Solar Fan

Mauritania presents a viable market for solar-powered fans due to its abundant sunlight, high temperatures, and limited electricity access, particularly in rural areas. The government's support for renewable energy and the increasing demand for affordable cooling solutions further enhance the business opportunity. With a focus on local assembly and partnerships, the initiative aims to capture a significant market share while addressing the needs of both urban and rural consumers.

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Ashabul Yameen
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0% found this document useful (0 votes)
23 views6 pages

Report of Solar Fan

Mauritania presents a viable market for solar-powered fans due to its abundant sunlight, high temperatures, and limited electricity access, particularly in rural areas. The government's support for renewable energy and the increasing demand for affordable cooling solutions further enhance the business opportunity. With a focus on local assembly and partnerships, the initiative aims to capture a significant market share while addressing the needs of both urban and rural consumers.

Uploaded by

Ashabul Yameen
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Mauritania is a Suitable Target Country

Geographical Advantage
 Abundant Solar Energy: Mauritania receives over 3000 hours of sunshine annually.
This abundant sunlight makes it an ideal location for solar energy products. With
consistent exposure to sunlight, solar-powered fans can function effectively, providing
a sustainable alternative to traditional electrical fans
 Hot Climate and Necessity for Cooling Solutions: Mauritania is largely desert with
extremely high temperatures, creating a strong demand for cooling products.
Traditional fans require electricity, which is scarce in many areas of the country,
making solar-powered fans a practical solution.
Energy Infrastructure
 Limited Access to Electricity: Approximately 40% of Mauritania’s population,
particularly in rural areas, lacks access to a reliable electricity grid. Solar-powered
fans address this issue directly by offering an independent, renewable energy solution
for cooling. They reduce reliance on electricity and can function in areas where
traditional fans cannot
 Population Distribution: With around 59% of the population living in urban areas
and 41% in rural zones, solar-powered fans can cater to a broad market segment—
both urban households seeking more eco-friendly solutions and rural homes without
access to the grid
Government and Policy Support
 Favorable Renewable Energy Policies: The Mauritanian government is increasingly
supportive of solar energy as a sustainable way to improve energy access. Various
renewable energy initiatives are receiving attention, aligning with the business goals
of introducing solar-powered fans
 Government Investment in Solar Projects: The Mauritanian government’s
investment in solar infrastructure, including solar farms and off-grid solutions, creates
an environment conducive to solar-based products like fans, reducing operational
barriers and supporting long-term business growth.
Business Idea
Product Relevance and Utility
 High Demand for Cooling Solutions: With average temperatures in the 30°C to
40°C range during much of the year, the need for affordable, efficient cooling
solutions is vital. A solar-powered fan provides a cost-effective, practical way to
address this need, particularly in off-grid areas
 Rising Adoption of Solar Technology: Solar-powered products are gaining traction
across Africa, particularly in regions where grid-based electricity is unreliable.
Mauritania is no exception, with increasing awareness of and demand for solar energy
solutions, making the business viable and scalable
Cost Efficiency and Sustainability
 Affordable Long-Term Solution: Although the upfront costs of solar-powered fans
may be slightly higher than traditional fans, the long-term savings on electricity (or
the lack thereof in rural areas) make it an affordable, practical solution for consumers
 Reduced Energy Costs: Consumers will see a significant reduction in energy
expenses, particularly in areas where electricity is either expensive or unavailable.
This provides an incentive for both rural and urban consumers to switch to solar

Statistical Justification
Economic Overview
 Low Per Capita Income and Price Sensitivity: Mauritania’s GDP per capita is
relatively low, meaning that most consumers are price-sensitive. This makes the cost-
efficiency of solar-powered fans, with their reduced operational costs, attractive to
middle- and low-income households
 Market Size: Mauritania’s population of 4.6 million presents a manageable but
significant market size, especially considering that 41% of the population lives in
rural areas with little to no access to reliable electricity. Targeting urban middle-class
and rural populations ensures a wide market reach.
Energy Demand and Supply
 Electricity Access and Solar Energy Potential: Only 60% of the population has
access to electricity, indicating a substantial need for alternative energy sources like
solar. The high solar energy availability (over 3000 hours/year) perfectly aligns with
the product, ensuring its functionality and cost-efficiency over time
 Government Focus on Solar: Mauritania is focusing heavily on solar energy to
provide off-grid solutions for its population, with initiatives aimed at increasing solar
energy deployment. This will indirectly support businesses that rely on solar energy
products, improving the feasibility of such ventures

Market Research
Target Market Segmentation:
 Urban Middle-Class Consumers: Middle-income families in urban centers who are
eco-conscious and seek sustainable products.
 Rural Population: Rural households without reliable access to electricity will benefit
most from the independence that solar-powered fans offer.
 Government and NGOs: There is potential for sales through partnerships with
government programs and NGOs focusing on renewable energy and rural
development.
Product Details:
 The solar-powered fan will come in sizes ranging from 12 to 18 inches, with
adjustable speed settings and a rechargeable battery that can provide 6–8 hours of
cooling on a full charge. These features make the product highly adaptable to
Mauritania’s harsh desert environment.

Strategic Analyses
PESTLE Analysis:
 Political: Mauritania has favorable policies for renewable energy development, which
benefits solar-based ventures.
 Economic: The country’s low per capita income suggests a price-sensitive market, but
solar-powered fans provide long-term savings by eliminating electricity costs.
 Social: Increasing temperatures due to climate change drive the need for affordable
cooling solutions.
 Technological: The adoption of solar technology is increasing, making solar-powered
products more viable.
 Legal: Import duties and taxes need to be accounted for (15% VAT), but the
government’s renewable energy push may lead to incentives for businesses like this.
 Environmental: The abundant sunshine in Mauritania provides a perfect environment
for solar-powered products to thrive.
ABCD Analysis:
 Advantages: High demand for affordable cooling, no reliance on electricity, and a
sustainable energy source.
 Challenges: Higher upfront costs compared to traditional fans; educating consumers
about the benefits of solar technology.
 Breakthroughs: Solar-powered fans offer a cost-effective, energy-independent
solution for households without electricity.
 Disadvantages: Initial penetration may be slow due to the higher initial investment
required from consumers.
MOST Analysis:
 Mission: To provide affordable, sustainable cooling solutions to Mauritania’s urban
and rural populations.
 Objectives: Capture 20% of the market within 3 years.
 Strategy: Use partnerships with local distributors, government programs, and NGOs
to enhance market penetration.
 Tactics: Promote the product using local influencers, educational campaigns, and
direct-to-consumer sales.
MoSCoW Analysis:
 Must-Have: Affordable prices, reliable after-sales support, and easy installation.
 Should-Have: Local assembly to reduce costs and adapt to the local market.
 Could-Have: Customization options for fan sizes and colors.
 Won’t-Have: High-end luxury features that could increase costs.

Competitive Advantage and Feasibility Analysis


Competitive Advantage:
 Local Assembly: By assembling the fans locally, you can reduce import duties and
logistics costs, making the product more affordable.
 Designed for Mauritania: The product’s dust-resistant design, long-lasting battery,
and compatibility with the desert climate give it a significant edge over traditional
fans.
Feasibility:
 High Market Demand: With limited access to electricity and rising temperatures, the
demand for solar-powered cooling solutions is set to grow.
 Scalability: The government’s focus on renewable energy will continue to support
solar-based products, improving long-term viability.

Key Partnerships
 Local Distributors: Collaborating with distributors who understand the Mauritanian
market will help in reaching both urban and rural consumers.
 Solar Panel Suppliers: Partnering with reliable suppliers will ensure the availability
of high-quality solar panels, crucial for product functionality.
 Government and NGOs: Tapping into government and NGO programs promoting
renewable energy will enhance your market reach.

Financial Projection
INITIAL INVESTMENT AMT
MANUFACTURING EQIPMENT $50,630.00
SHIPPING COST $17,517.98
EQUIPMENTS AMT
INSTALLATION $1,000.00
Solar Panel Integration Machine $12,450.00 RAW MATERIALS(IB) $22,262.85
Fan Assembly Line $9,960.00 WORKING COST $3,745.00
Testing Equipment $4,980.00 Role Number of Total Monthly
FACTORY RENT 6MO, 6000sq ft $5,000.00
CNC Machine $6,640.00 Positions Cost
UTILITIES 6MO $2,000.00
Battery Assembly Equipment $5,810.00 Factory Manager
INSURRANCE
1 $1,245
$7,000.00
Packaging Machine $4,150.00 ProductionSALARIES
Supervisor 1 $830
$8,277.00
Screwdriver Machines $830.00 Assembly MARKETING
Line Workers 10 $2,000
$70,000.00
Wire Stripping and Crimping $830.00 Machine Operators
DISTRIBUTION
3 $900
$0.00
Machines Warehouse & Inventory 1 $664
LISCENSING & PERMITS $1,250.00
Conveyor Belts $3,320.00 Manager TOTAL $188,682.83
Miscellaneous Tools $1,660.00 Quality Control Inspectors 2 $578
TOTAL $50,630.00Logistics Coordinator 1 $400
Maintenance Technicians 2 $660
Administrative Staff 2 $700
Security Guards 2 $300
TOTAL $8,277

MANUFACTURING AMT
EQIPMENT
SHIPPING COST
MACHINARY VALUE $50,630.00
CUSTOM DUTIES $5,063.00
10%
VAT 16% $8,910.88
SHIPPING 7% $3,544.10
TOTAL $68,147.98
Raw Material Incl Cost per Custom VAT Shipping Monthly Total Cost
taxes (not import Unit 10% 16% 7% Requirement (1,000
duties) units)
Solar Panel (20W) $12 $1.25 $2.19 $0.87 $500.00 $8,378.85
DC Motor (12V) $4 $500.00 $2,000.00
Battery (12V, 7Ah) $8 $0.80 $1.41 $0.56 $500.00 $5,384.00
Fan Blades (3 blades) $2 $500.00 $750.00
Fan Housing $3 $500.00 $1,500.00
Wiring and $1 $500.00 $250.00
Connectors
Charge Controller $5 $500.00 $2,500.00
Fasteners (screws, $1 $500.00 $500.00
bolts, etc.)
Packaging Material $1 $500.00 $500.00
Miscellaneous $1 $500.00 $500.00
Total $37 $2.05 $3.60 $1.43 $1,000.00 $22,262.85

BREAK EVEN AMT


PER UNIT COST $37.45
SELLING PRICE $60.00
PROFIT $22.55
BREAK EVEN AMT $8,367.31
ROUNDED UP TO 5481 Units

Future Prospects
 Expansion: There is potential to diversify into other solar-powered home appliances
such as solar-powered lights, refrigerators, and water pumps.
 Geographical Expansion: Neighboring countries like Mali and Senegal, with similar
climatic conditions and energy needs, represent future markets for expansion.
This detailed analysis illustrates the strong potential and practicality of launching solar-
powered fans in Mauritania, supported by favorable environmental conditions, market
demand, and government support for renewable energy.

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