Production of solar LED lanterns in Ethiopia Note: This project has been cancelled, because the applicant has failed to give RVO the requested project information.Establishment of a factory for production of 30,000 solar LED lanterns (5Wp and 10Wp lamps) for rural households in Ethiopia. The markets for solar (PV) and LED in Ethiopia are still in its infancy stage. Besides large government tenders aiming to bring energy and light to the rural areas, there is almost no commercialisation of PV / LED in Ethiopian rural or urban areas. All PV / LED are 100% imported at relatively high prices. The factory will be located in Awasa. The applicant and the local partner will set up a joint venture. The project will produce solar LED lanterns with integrated mobile phone charger in two capacities (5 Wp and 10 Wp). The owner of the applicant will be the supplier of the components. The project will serve three market segments: rural households directly (commercially), large government tenders aimed at rural households, and urban households and industry which are hindered by power cuts. The project aims in particular to develop and commercialise the market for the rural households.Corporate Social Responsibility (CSR)CSR will be anchored in ISO9001, Tüv and Lighting Global (setting Minimum Quality Standards) certifications. The joint venture will adopt the CSR policy of the local partner. Specifically this covers issues such as non-discrimination, child labour, gender, worker health and safety, environment.Impact•	Employment and working conditionsThe project pays a living wage. Fringe benefits include transport to and from the factory, subsidised lunch, health insurance, pension, training (budget), and a dividend at the end of the year.•	Innovation / Transfer of knowledgeThe production of PV / solar lanterns is new for Ethiopia. These products are at present 100% imported. The advantage of local production is that the solar products are cheaper and can be offered more flexible (in different capacities, different order sizes, etc) to traders/ consumers, and availability will improve. The project can potentially disclose the solar market.•	Chain effectsImpact on local suppliersAbout 2-3 suppliers will supply services worth 250,000 euro annually; after some time, the joint venture intends to locally outsource the production of plastic components worth 100,000 euro per year.Impact on local customers or consumersThe impact on the rural household is potentially enormous in terms of health (no more burning of kerosene), costs (kerosene cost amount to 50 euro annually!), options (reading and studying at night). The lamp is basically targeted at the Base of the Pyramid (BoP) population. In addition, local production means that availability of lanterns improves, tailor made options are possible as well as smaller orders for smaller traders, and lower prices.•	Impact on the sectorApproximately 120 sub-agents will be employed through the local hubs for sales and maintenance of the lanterns in the rural areas. Also, other companies can benefit from the lower price of the locally produced lanterns.•	EnvironmentLess kerosene is needed for rural lighting, reducing CO2 emissions. The factory will undertake an EIA to identify the environmental impact of their operations, and to define mitigating measures.•	Position of womenMore than half of employees will be female, also in medium/high positions. Establishment of a factory for production of 30,000 solar LED lanterns (5Wp and 10Wp lamps) for rural households in Ethiopia.