Morocco to set up 'Energy Shops' to help rural entrepreneurs

Morocco will help 500 young entrepreneurs from rural areas set up 'Energy Shops' to sell solar panels and water heaters, improved ovens and other equipment, distribute butane gas, and promote awareness of rural energy programs, according to a press release of the United Nations Development Programme (UNDP).

The aim is to improve rural access to renewable and clean energy and create a regulatory and financial framework, with public and private sector support, so the shops can be spark plugs for rural development.

The four-year initiative will begin with feasibility studies for potential store locations that local communities will choose. A UNDP-supported pilot had earlier established 50 shops.

Each shop costs about US$ 10,000 to set up, and the entrepreneurs will make an initial investment of $3,000. They can apply for loans through a partnership with Fondation Banque Populaire to cover the rest of the start-up costs. The bank will also train them in business management.

They will each get $5000 worth of tools and equipment as well as technical and business support.

"Our aim is to bring this new concept to scale throughout the country, thus promoting employment and local expertise," said Minister of Energy and Mining Mohammed Boutaleb.

According to UNDP Administrator Mark Malloch Brown, who participated in the launch while in Morocco recently for an international conference, five small energy businesses would make no difference and 50 would be a start. "But 500 businesses will make a real difference in alleviating poverty through the development of renewable energy," he said.

"We are very proud to launch such an innovative program, based on the success of the pilot phase," said UNDP Resident Representative Emmanuel Dierckx de Casterlé. "It can now be considered a model for a good partnership in renewable energy between government, civil society, the private sector and UNDP."