The Market Opportunity
- More than 60% of the Sub-Sahara African population live in rural areas with underserved markets, without formal infrastructure and stable access to daily consumer goods, (drinking) water, health, energy, finance, agricultural inputs & machinery, leisure & entertainment, and other demanded products and services.
- The annual trading potential of these markets in Africa for daily consumer goods alone is USD 429 billion, and USD 8.3 billion in Rwanda.
- The market size per Center in Rwanda comprises 40 villages with a population of 30,000 (incl. the catchment area in a 5 km radius), representing a total of USD 650,000 of consumption per month, i.e., USD 22 per person per month.
- Whilst there are manifold activities, each targeting one sector-specific challenge, most of them struggle for financial sustainability due to the high cost of accessing and operating in the last mile.
- A unified, integrated approach tailored to meet the broad range of specific needs of rural communities is still missing.
What is THE PULSE?
Implementing and operating a network of solar-powered rural centers (similar to malls) as a platform for providers of various products and commercial, social & public services: “THE PULSE Centers”!
Each THE PULSE Center will be located in the center of a selected village, on a fully developed plot of land, comprising the following components:
- a well-designed manufactured kiosk with an integrated solar system (so-called “E-HUBB”), which represents the anchor structure of each THE PULSE Center;
- a retail and wholesale shop as the anchor business of the Center, which is hosted inside the E-HUBB and operated by THE PULSE Rwanda Ltd.;
- fully serviced stores and offices, tailored to the needs of local entrepreneurs, national & international companies, NGOs & government organizations;
- THE PULSE Rwanda will provide these stores with power from the E-HUBB and, if requested, equip them with the appliances and the equipment necessary to operate – in particular for local entrepreneurs to bridge their lack of financing possibilities for productive use equipment;
- a social leisure space that comprises of components such as a shaded food court/seating area, washrooms, night lighting, greening, etc., which is inviting and can be used by every visitor of the Center; this common area offers privacy and safety in a fenced, lighted and protected space.
Each THE PULSE Center will be linked to the main economic hubs of the country through constant supply chain managed by THE PULSE Rwanda Ltd.
Moreover, Each Center will link a 5 km catchment area – comprising on average 40 villages – by implementing a mobility concept for goods and people, operated by private microentrepreneurs.
5 – 7 THE PULSE Centers will be bundled to one “Cluster”, managed by one Area Manager based in the “Cluster Center”.
This integrated approach will generate high foot-traffic at THE PULSE Centers, thus attracting even more product and service providers (platform approach), thus the Centers will develop into a “pulsating” nucleus of economic and social activities of the respective BoP community.
Consequently, THE PULSE Rwanda Ltd. will have the following three revenue streams:
- B2C retail sales of a broad range of consumer goods and services (out of the E-HUBB).
- B2B wholesale for retailers within the catchment
- B2B rent by renting out the stores within THE PULSE Centers
THE PULSE USPs
- A network of fully-serviced, (solar)powered and connected centers at remote, last mile communities (rural malls).
- A brand agnostic platform approach, as an integrated access point to the last mile for all sectoral players.
- Bundling activities of all main sectors (integrated approach), creating synergies and thus opportunities for companies as well as the community.
- Own supply chain, which can cater for other tenants of THE PULSE Center.
- Transport solution for people and goods within the catchment area.
- Permanent local management and supervision presence at the last mile.
- A profitable and scalable business model.