Scaling Energy Access – Sub-Saharan Africa

Anna-Marie:

Hello and welcome to Episode 28, our latest episode of 30 for Net Zero 30. I'm Anna-Marie Slot, Global Sustainability and ESG Partner here at Ashurst, and we are speaking with 30 changemakers around the globe about actions to take now to deliver on 2030 goals. Today we are very pleased to be joined by Ndiarka Mbodji, the founder and CEO of Kowry Energy. Kowry Energy is a Berlin based sustainability-driven energy provider to independent energy suppliers in Sub-Saharan Africa. Prior to Kowry Energy, Ndiarka worked at Rolls-Royce for 15 years. Ndiarka, thank you so much for joining us today. It's great to have you here. Can you tell us a little bit about your own background, how you came to found Kowry Energy, and what you do?

Ndiarka Mbodj:

Hi, good afternoon, Anna-Marie, and thank you very much for the introduction and the opportunity to be here. Yeah, how I came to do Kowry, as you said, I've spent quite a while at a fantastic company, the Rolls-Royce Group, with different businesses working in different functions internally, externally, facing supply chain, facing customers. And clearly, that experience was amazing and also enabled me to grow, learn a lot, and discover a lot of area in business, and particularly Rolls-Royce being a cutting-edge engineering company with a focus on energy and power, I've learned a lot about those aspects.

And obviously from my name, you can tell, Ndiarka Mbodj, I was born in Africa, in the West Coast of Africa, and grew up in France. You have a relation with where you come from and your roots, and as you grow up and go back and forth to rediscover, if I can put it that way, your country, you notice that something is a bit odd in the region where your parents come from as compared to where you actually live. And as you go more deeper in that discovery, you realise basically the main difference is baseline infrastructure, and energy being one of the core fundamental infrastructure. Then you ask yourself, okay, what can I do? How can I better use my skillset? How can I use my experience and knowledge to certainly contribute to make an impact for where I originated from, but also in general given the global challenge facing the world in terms of climate change, how can I contribute? So, that's basically the root of Kowry Energy.

Anna-Marie:

Fascinating. And you and I, we met a little while ago in the wintertime, but obviously climate change and what's happening in the world has affected what you're looking to achieve with what you do every day. Have you seen a shift? Do you think there's a shift there in terms of how people look at sustainability and energy transition in particular?

Ndiarka Mbodj:

Oh yes, most definitively, and I think that's a global shift, not only obviously in Africa where people have been battling with the impact of climate change for a while. Africa is the continent that contribute the least to climate change but is the number one continent that feels the impact directly of the consequences of that climate change. But I'm quite pleased to see actually that in the last few years there has been some significant development, particularly all around the world, and most certainly in the Westernised country. I think there is an unprecedented increase in awareness about climate change and the urgent need for sustainability.

I guess then until now, people thought, "That is not me. It's not about me. I know it's happening, but it's far away. It's not touching me." But I guess now the awareness has reached a critical mass across many countries, with a growing number of individual who not only understands the gravity of the situation, but also have internalised the fact that there is no viable alternative to living, working, producing, and also relaxing in a more sustainable manner. So, I guess the alarming surge in climate-related disasters such as floods, fires, you name it, over the past few years, has further accelerated this transition.

Anna-Marie:

Yeah, no, definitely. And I think it's interesting, I kind of get the sense it sort of ebbs and flows. Everyone understands the awareness and the awareness grows and they understand the importance, and then everyone gets a little bit tired, kind of eases off a little bit, and then has to build up that momentum again. And I don't know if you see that as well sitting where you are in Germany. Obviously, energy security is a huge issue in Europe and has been since the invasion of the Ukraine. Are you seeing that impact your conversations?

Ndiarka Mbodj:

Yeah, and I think what I'm pleased and what I'm witnessing to see is that there is a notable shift in individual behaviour. So, people are first of all taking personal responsibility and adopting more sustainable practises at any level. Certainly in Europe, the war just in our doorsteps between Ukraine and Russia has opened people's eyes, has a direct impact. I live in Germany, where 80% of the houses are heated with gas, so the prices go up. Obviously, the government took some action to kind of manage that a little bit for the normal taxpayer, but at the end of the day, everyone have felt the rise of energy prices just because of the action, as I said, in our doorstep.

So, that has made people more aware in general, and that awareness I think has also, particularly here in Germany, we have seen a lot of actions for all level of society where people are having more significant demand placed in the government, in businesses and in industries, to accelerate the transition towards a more sustainable world. So, I think this collective voice is putting immense pressure on various sectors to take decisive action, and I think that's a really positive thing and that will help us really go into the right direction.

Anna-Marie:

And before we get into your thoughts on who needs to do what, I think the other thing that's really fascinating about what you do is that interconnection between Europe, living in and being in Europe, but also that connectivity with the countries in Africa. And as you say, Africa is at the front end of climate impact, particularly around now the need to try to cool themselves in an ever-increasing heat environment. But how do you see that on your day-to-day? What are you hearing from those different areas? I think one of the things is we hear a lot from various parts of the world about sustainability and energy transition, but I don't think we hear enough from people who are on the ground in places like the countries in Africa.

Ndiarka Mbodj:

And that's an interesting point you're raising there, particularly when you say I don't think we hear enough. I would rather say I don't think the global media is presenting things as they should be presented. So, there is a lot of activity going on and there are a lot of voices, people raising their voices. Actually, they have been forever. As long as I can remember since I've become more aware, I would say aware of the continent since I'm a teenager going back and forth on holiday and et cetera, people have been actively working towards climate action in Africa, just because they were really facing the impact directly. Erosion, many cities have disappeared in the coast of Senegal, the country I came from, not only Senegal but all the coastline, deforestation, et cetera, et cetera. So, people have been really quite active in the front, and obviously the media representation, and you know how the media world is today, not necessarily addressing heavy topic, and these are quite important and deep topic.

That why for us as Kowry, when we created Kowry it was rooted in really the fundamental belief that if we are to succeed in fighting climate change, the only way to doing that is to be collaborative and to make sure that as we go into that journey, we do not leave anyone behind. So, that why we have created a unique business model which is centred around collaborations, and we actively partner with local energy providers to accelerate the growth of their operations. That's quite important.

If you look at the infrastructure in Africa, obviously there is a grid network, but this grid network only serve less than 50% of the population. So, per default, most of the people which are not connected, or the businesses, will rely on small-scale energy projects, which are quite difficult to finance, albeit there are a lot of money available for financing energy access, specifically in Africa, because investment doesn't go necessary towards smaller project. So, we serve as an aggregator platform by consolidating those small-scale energy project into portfolio, and that help obviously the local energy provider to deliver faster to a larger customer base and in a most cost-effective way, if I can put it that way.

For Kowry, we really believe that collaboration is the way forward to solving the problem that we are facing, so that why we partner with local energy providers to accelerate the growth of their operation, really. So obviously, most of them deal with small energy project because of the nature of the infrastructure in Africa. Most of the people are not connected to the grid, they will not be connected to the grid, therefore that's where decentralised energy systems will come in place for communities and also for small and medium-sized businesses. So, we do act as an aggregator platform by consolidating those small-scale energy system into project portfolios, and this approach really allows those energy providers to reach a larger customer base rapidly and in a cost-effective manner. And in the same way, it present investors with more significant and secure investment opportunities, mitigating risk, and also ensuring long-term returns. So, we really do believe that fostering a collaborative ecosystem will drive a positive and impactful change in the energy landscape in the region.

Anna-Marie:

No, interesting. And you've identified those are a lot of the gating items and the difficulties that you have in a decentralised system, because for a lot of people, obviously the transaction cost is the same whether it's big or small. And so if it's small, that kind of puts off people who are trying to finance it. It kind of increases transaction friction. That's why your platform is so amazing.

So, what action needs to happen now? You're talking about the great work you're doing with your platform, but what do you think is a specific action that needs to happen in order for people to really deliver on the 2030 expectations?

Ndiarka Mbodj:

Thank you. That's actually a fantastic question. I believe we don't need any more action. Actually, what we need, to my point of view, is consistency and just fulfilling the commitment which has been made previously. [inaudible 00:12:45] since COP21 nearly seven years ago, progress has been disappointingly minimal. And I think in fact actually, the situation has worsened, because the last GIEC report has indicated that we are now at 66%, I think, more than 60% risk of breaching the 1.5 degree target by 2027. So, clearly, the root cause of that is that as a global community, we haven't deliver on the promises that was made in the name of all of us, and also to the planet.

So, if I just can name some of them. For example, talking specifically towards Africa and in general developing countries, the pledge of the hundred billion dollars a year for adaptation remains largely unseen, leaving this nation struggling to cope with the challenges posed by the climate change. Also, despite all the assurances from the Global North, investment in new oil and gas project has continued since 2015 in fact, with several new ventures launched across Europe, Canada, and the US, for example. And just more recently, I think it was just like few weeks ago, prominent leaders such as President Macron of France have backtracked on environmental regulation in pursuit of economic growth. So, completely contradicting the agreement reached by the European Union. When I see that, I wouldn't think about, oh, we need to find new action. We actually need to just do what we said we would do, and consistently. At the end of the day, we would have seen already some improvement if we just had been quite committed to delivering in the things that we said we would do.

Anna-Marie:

Yeah, keep it at the forefront and just do what you said you'd do. I think it's not rocket science. In terms of yourself, I mean, you were talking about what you're seeing kind of around you in Germany. Do you have your own commitment? Are you looking at your own habits and patterns in terms of net zero?

Ndiarka Mbodj:

Oh yeah. I mean, you can't dissociate yourself and you what believed and what you do for a job and life. I think you need to, again, just go back to the previous question, it's about integrity and credibility. So if I look at myself, I've changed a lot I would say in my journey, and I think certainly being involved in the entrepreneurial journey and Kowry has played a big place in that.
So for example, I'm eating far less meat than I used to eat. Maybe once or twice a week. Everyone who knows me, all my friends, you know that I'm a car lover. I like driving. I've spent the first seven years of my life in the automotive industry, absolutely a mechanic and car fan, and then obviously an aerospace fan, a flying fan. And I want to put it out there, I will always fly, but I don't have a car anymore. As I said to my colleagues, I'm now a true German and a true Berlin girl because now I'm biking. I'm biking all over the place, I'm taking public transport, and that's it. I even go shopping with my bike. So, I wouldn't say it's a new me. It's a natural evolution, because it just makes sense and it's just so convenient when you're used to doing all those things. It just become natural in your life. So, that that's really important. And it's also keeping you fitter and more healthy.

Anna-Marie:

Yeah, it's those knock-on effects of doing things the way that your grandparents did when they moved around and carried things.

Ndiarka Mbodj:

Exactly.

Anna-Marie:

And didn't have to go to the gym. I go to the gym and I kind of laugh at myself for replicating hard labour that I've tried so hard my whole life not to have to do by studying hard and getting a job. So, it's quite a...

Ndiarka Mbodj:

That's true.

Anna-Marie:

And then I laugh that I spend money to go replicate that somewhere. My grandfather farmer would've said, "Just come by my place, I'll take care of your exercise needs."

Ndiarka Mbodj:

And it's funny now that you say that, because in Westernised country, we went that path. And if I look at in Africa where we work, and other emerging nations, they are still moving far more than we do, not necessarily having cars, and walking more. And then you can see that in terms of health, they are less inclined to some of the type of new, let me say 21st century disease that we have, like diabetes, autoimmune disease, and you name them. So it's quite interesting to say, hey, there is a healthy lifestyle that, if we stick to it, it's better for us.

Anna-Marie:

Yeah, and part of that big picture, right? It's sustainability there in its widest sense. How do you integrate all the different parts of what you're doing so that you create both a resilient ecosystem, but also a resilient and sustainable way for yourself?

If you could provide listeners one takeaway, one thing that you'd like them to do, again, I think people prefer to be in action on things and feeling like they can contribute, what would it be?

Ndiarka Mbodj:

I truly believe that each of us can have some power to act and make a contribution no matter how big or small. So, I want people to continue being curious and being demanding, and particularly to challenge the status quo. We've seen that when people raise their voice, things change, and consumer behaviour, for example, has a tremendous power. And most recently, more and more we're seeing that actually governments are, I would say, governing by emotion, if I can put it that way, so a lot of new policies are more or less driven by the people's reaction to certain actions or certain events in a positive and sometime as well in a negative way. But that has a good, strong power to change things, and I think we need to continue do that. We need to be a bit more activist and then challenge the status quo, because that's how we move things forward.

We've given some few example of what we could do in our own level in our daily life. So there is, I think in the UK, a supermarket chain that say every little help, and I do agree with that. Some people think that, "Well, it doesn't matter if I eat less meat, because the industry is still outputting so much CO2." But the industry is changing. You have ESG now, which has had a big resurgence, and businesses have finally understood that there won't be any futures without strongly embedding ESG and moving to sustainability. So, that change is coming. We need to continue pushing for it as consumer and as citizen.

Anna-Marie:

Excellent points, excellent points. Thank you, Ndiarka, for sharing your insights, sharing the different viewpoints. Really appreciate your time today.

Ndiarka Mbodj:

Thank you very much. It was a great pleasure.

Anna-Marie:

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