- June 24, 2024
- Posted by: Havenhill
- Categories: Beyond Electrons, Blog
For the people of Adafila community in Oyo State, the arrival of electricity has transformed their lives. Parents can now afford to send their children to school, businesses are thriving, and homes are illuminated. For Alhaji Balelayo, his once dormant dreams have been revived, all thanks to the solar mini-grid in his community.
Balelayo runs a water packaging company called Balelayo Table Water, popularly known in Nigeria as a ‘pure water’ business, supplying water within Adafila and neighbouring communities in Oyo and Kwara. He started the business in 2019, but despite its potential, the factory struggled due to the lack of electricity in Adafila. This forced reliance on generators, making operations unprofitable.
Running a Water Processing Factory Without Electricity
Balelayo Table Water’s primary market was in Adafila, but selling there was difficult due to the lack of electricity, limiting potential buyers.
“We focused on supplying neighbouring communities with grid extensions or those using generator sets for their freezers. But, transporting water to them barely covered distribution costs, significantly hurting our sales since our community lacked power.”.
This led to the business shutting down 18 months after its launch.
In 2022, a solar mini-grid plant was commissioned in Adafila, providing energy to over a thousand people in the community, including Balelayo. This allowed him to revive his water packaging business, and with affordable, clean electricity, running the business has been ‘wonderful.’ “The business has advanced. In 2019, we struggled to sell 20 bags, but now we comfortably sell 500 bags on average, sometimes more,” says Balelayo.
With electricity now available, Balelayo no longer heavily relies on petrol or diesel, leading to significant savings. “We spend about 10% of what we used to on powering the plant now that we are connected to the mini-grid.”
Balelayo who runs multiple businesses, often used funds from one to prop up the water processing business in the past. This strategy proved unsustainable over a few months. Now, the business relies solely on its own resources, marking a significant shift toward self-sufficiency.
Aspirations for the Future
With a thriving business, Balelayo has big plans. They recently acquired a second distribution truck, fully funded by the business and plan to add a third. He also aims to purchase a better water treatment plant to improve quality and compete with larger competitors.
“I visited a larger water processing facility and saw their equipment. I want to purchase a more sophisticated equipment to increase our water quality”, he explains.
Job Creation: Before and Now
Initially employing six people who had to be let go at a point, the business now has four full-time employees. The success of the water factory has also brought ease to Balelayo’s family. “I have three kids, and they are all in private schools,” he shares.
Beyond Electrons is a series which focuses on highlighting impact stories that showcase how our mini-grids are electrifying homes, and businesses and transforming lives.
Read the previous episode of Beyond Electrons here.