Abubakar Aidarus — transcript

Solargen

This transcript is generated automatically by YouTube and has not been checked by a person. It misspells names and mishears words, particularly around Kenyan English and company names, so read it as a guide to the conversation rather than a quotable record. Each timestamp opens the video at that moment.

0:06 Greetings ladies and gentlemen and welcome to episode 62 of the African do podcast where we feature stories of excellent Africans executing excellently. Today we are very privileged to have with us Mr. Abu Bakr Idarus who is the founder and CEO of Solergen Technologies Limited. Abu Bakr welcome to the podcast.
Thank you Leonard. Yes,
it's a pleasure to be here with you today.
Great. So, Abu Bakr, um we like to go to the beginning. Yeah. And uh in preparing for this podcast, I was watching some of your clips and reading through your website and it came to me that you were born in Wajir, if I'm not wrong.
Garissa.
Garissa. Okay. In Garisa. Yeah. So, maybe we can start there. Who is Abu Bakr? Where do you start from? Where did you grow up? And how do we then and we'll come all the way to where we are today?

1:06
Thank you, Leonard.
And uh I'm Abu Bakr and born and uh and raised in Garisa, Garisa town. Um I come from a family of four and two brothers and one sister.
Yeah.
And uh I did my primary school in Garisa. And uh I always say I'm one of those generation that were privileged.
Yes.
And uh privileged in the sense that I played with clay and made toys from clay.
Yes.
And then uh I was able to and uh watch TV. I think that was at the beginning. I think I've seen black and white but mostly the small TV and color TV
and of course the smartphone and so I've I have been lucky in that sense because I've lived in a very rural area looked after animals and played with what was available.

2:06
Yes.
And then moved to a small town and with Garisa and then to Nairobi. Mhm.
So that is where the my life began and uh I finished my primary school in 20 uh in 2000.
Mhm.
And [clears throat] then I was lucky to uh be admitted to Sah and scholarship.
Yeah.
I did my four years uh there. It was uh I think very uh rewarding years.
Yes.
Uh to be able to school with an a lot of Kenyans.
Diversity. Yes.
And uh I remember when I came to form one and my English was not very good.
Mhm. And I remember after 3 years one of my colleagues from Garisa
telling me pulling me aside and saying I never thought you will speak good English
like this [laughter] thanks to [gasps]

3:03
and uh so yeah it was transformational life-changing and uh
it was not only diverse in terms of our different backgrounds
but also it was diverse in our economic backgrounds because 70% are coming from the rural part of our country and 30% who are coming from very well off families and wellto-d do and you know and bringing all those uh different backgrounds uh I think was quite interesting and I think was really a good environment and uh with the clubs and the activities that were available but I think that was also really good both for the the ones who were coming from rural parts And the ones who were coming from good families
I mean we all came from good families. What I mean
yes

3:54
economically
economically
empowered. So I think the lessons all of us picked from that was quite transformational.
Mhm. And then I and after immedi high school I worked with equity and we were among the very first one about the leadership equity leadership program which is now has wings fly and few other programs.
Yeah.
And uh I worked there for one and a half year before I joined college which was those days you will stay one and a half year. Yes.
Almost before you go to college. Then I did my engineering electrical engineering at the University of Nairobi.
Okay.
Um and the journey of solen actually started at the University of Nairobi. Okay.
In the year 2010
and I I think working equity was an eye openener I must say. Um because you're very young but you are able to interact with entrepreneurs who are coming to open accounts and operating accounts and businesses.

5:00
Yes.
And uh I will see someone walk in starting a new company even the opening balance is a difficult uh thing for them to do
and one year down the line you actually see the person thriving.
Okay. and business speaking and
you can actually see the transformation happening in their life
and I was like um the bug always was there of you know doing my own things and being an entrepreneur but then that really validated it that that is what I need to pursue. So by the time I was coming to university I was already like I wanted to do something. So I remember and I I used to buy clothes from Jam Jam mosque opposite J mall.
Yes.
Okay. There was a friend of mine who used to bring clothes from Uganda.

5:54
So I will go to that guy and buy pick trousers and shirts.
Mhm.
And then I will go to Kimanti house
and sell to another friend who had a shop there.
Yeah.
So I'll pick it for 700 and flip it for a,000. And the guy sells it for 1,500. So, and it was close to the university. So,
yes. Yes. Yes.
I will do that. Um, I also remember and I had a friend uh I still have a friend Cyrus Camo. Cyrus comes from Moa.
Mhm.
And uh we had conversation and I realized the rice we eat.
Yes.
The bishori comes from the area.
Yes.
And uh we decided to do a collabo.
So I remember going there 4 a.m.
Yeah. and buying rice and bringing
toum actually there's a place called muti just before

6:42
mu yes
so I will go there pick rice maybe gata you know three sacks four sacks of rice
and then bringing to Nairobi and then packaging it in 5 kgs 10 kgs and selling to restaurants
and uh I I also sold shoes because there's a friend of mine who had distribution business in Italy they used to bring shoes from China.
Yes.
And the most interesting thing was I remember I picked some samples and went to a gentleman who had a boutique shop.
Mhm.
In NH second I think second or first floor.
Mhm.
And then I took the shoes to him and I said I have shoes.
And he looked at it and then he you know took me around and showed me the shoes that he was selling. So the shoes were like about 700 and the guy was selling shoes that were 15,000 20,000.

7:37
Yes.
Just he was very polite man. I still remember him and he told me these are not the quality of shoes I sell.
Yes. Yes. Yes. But very diplomatic
very polite guy and I really appreciated because and I got the point but he was also very kind.
Yes. So yeah, I I I
So let let me just take you back because when you leave Stere and join equity in the program.
Yes.
You're straight out of high school.
Yes.
So what job do you do in the bank? Because you know you're not really skilled in anything specific for you to be given uh work. So what what do you find yourself doing in the bank?
First I have to tell you equity was also very small.
Yes. At that time, Equity had, I think, 14 to 17 branches.

8:26
Um, and the headquarters was still in NHIF. So, it was a small bank.
Yes.
Okay.
And I remember I reported on a Monday 10th of January if I'm not wrong.
Mhm. And uh I remember HR took me from the head head office which was I think 14 10th to 14th floor and then there was community branch ground floor.
So she brings me there
and there was a lady uh manager very kind Nancy and she brings me to Nancy and says we have this you know pre-un university guy the program was called pre-un university that time.
Okay. Okay. And then the lady takes me and takes me to account opening and there I meet and a lady and a gentleman and there are three desks. So I'm given one of the desks. Okay. The first day

9:23
I don't know about the product. Zero knowledge about products.
Um and at that time the bank was growing very fast. So there are cues of people who want to open an account. So everybody's busy, they don't even have time to explain anything to me cuz they have cues of customers.
Wow.
So I sit there, I don't know anything. And I remember one guy, I think he was a doctor, somebody, and I remember him telling me, "Young man, if you can't help us, stop warming the seat." I [laughter] until that time I regarded myself that I you know was hard worker somebody who probably had figured out a number of things. I never felt so helpless. I left that day honestly and I was thinking like I should not come back.

10:20
Yes.
Because it was really bad.
I don't know if I ate dinner so I slept. M
he almost went to bed but 6:00 when I woke up I was like no man you can't today is not the day I got my tie and got back but I came a bit early so that day despite the difficulty I made observations there were three things that were happening at that desk one was information
Mhm.
Two was data entry
and three was taking photos and scanning the signatures and uploading them to the system.
Okay. So I knew if I came early and sat with the two colleagues before time and the of course I was overhearing what they were explaining the previous day
but I could get real information and at least that day I could be the guy to give informations.

11:13
Okay.
So I that is what they did the first day. The second day I realized I can take the photo and scan the signature. By the third day, Wednesday, I was doing the data entry, man.
So, and and it was a difficult position, but I also learned when you're pushed hard,
you you
you can't step up.
Yes.
And you have your bag against the wall. I mean, I I I I I was in Nairobi and uh you know, the money meant and they were paying us very well to be honest with you because 24,000 25,000 that time
that was 205. That was a lot of money.
Was a lot of money then. Yes.
Yeah. So, and it was difficult but I think those were looking back that time felt bad but when you look back it was maybe one of the best things. So, I went to account opening then later became a cashier and then later I went to IT bank support.

12:11
Excellent.
Yeah.
Good. So now you go to university electrical engineering. Uh but the the seed I would say for entrepreneurship has been has been planted.
Yes.
So you now finish you graduate from um where does that take you postgraduation?
Okay good. Maybe I'll take you a little bit back.
Sure.
So 2010 beginning of 2010 end of 209 I start doing an research because there was a unit
about power generation.
Okay. And one of the units that was one of the sources of power was solar.
Mhm.
And for me that was a moment because back from and Garisa there was a lot of blackouts.
Um that time the grid had not reached Garisa Mandera
and I was like but we have plenty of sunshine. So I thought I should interrogate this further. So I looked at companies that were doing solar. So there was a company called Kennal Solar. I don't know if this is still I remember.

13:15
Yes. It was founded by a gentleman who was an Italian.
Yes.
And uh I looked around. There was another company called and still there Solar Techch
Solar.
And I used to pretend to be a customer.
Yes.
Okay. And ask them questions and they will do quotations and they will walk me through. And that was my initial research
and understanding the solar. And by mid 2010 in my fourth year I registered the company as a soul business that is solen technologies limited.
Okay.
And uh I remember the website was done by my classmate.
Yes. The logo was done by my classmate Edward and Edwin Mukaya did the logo of the company
and the website was done by Sio Shake.
Yes. And uh I remember we reprinted some and t-shirts and caps and some brochures and we went to Garis and opened a small place

14:15
and bought some few items from solar
and I raised the money from a colleague of mine who was very close who had finished earlier than me and was working in the clear and forwarding business
and my sister who was in South Africa at that time I remember she gave me 2,000 USD which was about 200,000
and the gentleman gave me 100k.
So that was a seed money and that I started with and
and you're a trader.
Yes.
In solar. So you're you're buying from Solar Tech which is an established solar business and you've opened a small space in Garisa where you're selling these solar solutions.
Exactly.
Okay. But then and now the holiday because we usually used to get four months holiday and the four months were often I had to go back my for my fifth year after 2 3 months of paying you know the rent from my small college allowance. I realized that was not sustainable. So we closed the shop

15:17
and uh now I concentrated on my fifth year and finished. So immediately I finished I got an opportunity. I first volunteered and with an organization for two months and then later they gave me and role in the organization. So I worked for about 7 8 months but still I felt that I needed I need to do.
So this organization that you work for Yes.
has nothing to do with solar.
Nothing. Zero.
Okay.
Yeah.
So then I quit.
Mhm. and I approached some gentlemen who became my partners and I raised some capital from them and that was 2011 I graduated. So towards the end of 2012 I operationalize solen again.
Okay.
And uh and at that time we started with one office in Kenya Nairobi which was in view back to 12th floor.

16:10
Okay. And then I realized because during that time when I was working with the organization I went around the northern part of Kenya
then parts of Somalia
and mainly I will find b holes that are not working.
Yes.
And when I ask people why don't you use solar then they will tell me it's expensive no one you know understands the technology. I was like no but I really understand. So I I quit. We start the company and and I start trying to sell the products to the bohole operators but I quickly also run learn that it was too expensive for them. Yes.
But I also
realized that there were a lot of developmental organizations
that was spending money [clears throat]
on developing water infrastructure.

16:58
Okay.
So I start now approaching them and pitching the idea to them. Yes.
Please, why don't you use solar instead of diesel generators?
Yes.
Because once you buy the generator, the generator needs to be foiled.
Yes.
And these communities though you have put in the capex the capital cost but you have left them with a huge operational cost.
Yes.
And the worst part is during drought seasons. So what happens during drought seasons is the animals become very weak and they [snorts] fetch very low prices. So that is the time that they can't afford
to fuel
to fuel and that is the time they need the water most.
True.
Okay. So some organizations like Norian Refugee Council and it was one of the early supporters and we did a lot of work with them. We did a pilot with them and then after that they scaled

17:49
and the pilot was solarizing B holes.
A bow hole. Yeah.
Okay.
That is where we started. Then later now we added mini grids. Then we added irrigation systems
and we developed a lot of other products out of that but mainly it was the communities that we were working with and the developmental agencies because our work was we were coming in as EBC that is engineering procurement and contracting agency.
Yes.
And we help them design their programs better. Okay.
And make them more sustainable.
And how did you address the cost issue? Because the cost was a barrier. So you on one hand you addressed it by partnering with these uh developmental organizations to meet the upfront cost.

18:34
Yes.
Um but what about uh I'm sure once you started getting your thing out there
then people started to see this you know once you start using Yeah. then they're saying oh this guy the bohole is now working it works with soda it's working well. So how was that journey?
And so the first 5 years that is between the 2012 to 2017
we actually concentrated a lot working with developmental agencies. Okay
and the reason is because they usually have funds that they use for community development
and be it on the water side or on the irrigation side or on the education side or on the health side.
Yeah. they have been investing in diesel generators and buying the diesel.
Okay.

19:20
Okay. So our value proposition was if you invest in solar the payback period is typically about 5 years
at that time. Now it's lower and however the maintenance cost is very low and that means you have freed a lot of other developmental money that you will have used to either continue buy
now you can use it for more development
problem programs. Yeah.
Yes. And in situations where you have to hand over the project to the community, then you're handing over to them a sustainable project because around 3 or 4 years later, there was another drought. M
but now one of the things that really encouraged a lot of them to do it to go green
is the fact that a lot of ball holes that were powered by solar were still running

20:21
despite the community not able to buy foil because they don't need foil.
Yes,
the sun is still shining.
Yeah. So that validated what we were trying to tell them
and I think about 6 years later what was strange became common.
Yes.
And a lot of organizations started adapting. We onboarded and uh UN agencies, we onboarded a lot of other international agencies also you know community based organizations
and we positioned ourselves as to go to engineering firm that brings to the table ideas and helps with execution.
Okay.
And we were available also for maintenance and after sale support.
Okay. So through that we were able to gain a good market share and in East Africa because we were having office in Kenya and Somalia but we were doing projects in Ethopia still do and uh in Uganda, Tanzania I remember even co time we did a project in Mambique which was one of the hardest and to do now currently we have an office in Zambia as well. So I'm happy to see that the technology that was very difficult to sell 10 years

21:44 ago and becoming a common place right now because right now it's it's
yeah you're just talking about the cost
and uh you know is there financing cost available for it or other things but people are not asking you the question of is this sustainable is it and can I invest in it is it safe do we see less of those questions is yeah
I want us to speak about two things that you have mentioned yeah the first being your diversification
yes
of your product because you started out solarizing b holes but you then went into several other lines you know including irrigation you mentioned and one or two others so maybe I'd like you to speak tell us about how that journey was of identifying those opportunities um just like you identified the bohole one

22:34
how was the journey of identifying the other and then second after that maybe we can touch a bit on your foray outside of Kenya because you started as a as a Kenyan company and we see that a lot entrepreneurs with a fear you know but you're saying you executed projects in Ethiopia in Mozambique you have an office in Zambia you executed so maybe tell us a bit more about that foray becoming a regional player and executed executing in multiple markets
okay good so let me First start with what h how did the diversification come from like how did it come about?
Yes.
So first is around 2015 2014 we had an an investor and uh this was a a UK entity. Mhm.
So they did a small investment in our company and uh I I I remember a year down the line and uh there was an audit that was done and uh they gave us the opportunity they will appoint or suggest an auditor

23:47
and they said if you are comfortable you choose whichever you know two three. So we worked with one of the auditors. Mhm.
So I remember and when he came and walked into the office, so the first thing was and I need to look at the documents and so I called the finance guy and I told him and please give him whatever he needs and uh my my instructions were very clear and uh that was the first audit we were doing. So what do you have you have what you don't have you don't have. Okay. So the guy did his audit and the audit findings came out and uh and it was a disclaimer.
Okay. Or basically what it means is your documentation is
all over the place.
All over the place.
Very bad.
And so the auditor comes to me and says you know bakar this is the the report. So I've prepared the management and letter. Can we look at it? We looked at it and said okay what do you think of it? I said I now think that yeah we know where the problems are. So we sent to the and the investor

25:01
and I remember the investor was based here in Nairobi. So I came for the meeting and seven of them sitting on the other side and me sitting on the other side and I remember the guy was his name was Kia Prince uh a Brit. So he looked at me and said, "Have you looked at the report?" And I said, "Yes, I've looked at the report." [laughter] And he said, "Okay, so where do we go from here?" I said, "Okay." And at least now we know what to address. And and I think when there's a challenge, it's just good. One of the biggest challenges I think with entrepreneurs and I've seen there's always the urge to sugar coat things. Yes. to hide things to look good.
And so I told him, listen, it is what it is and at least we know where the problem is. I said, what do you suggest? I told him, why don't we hire that auditor

25:58
to fix
to fix the problem and surprisingly he accepted because I learned that we have a common objective, the investor and the invest.
All right. So we hired young people, he trained them for 3 years and we paid for their SCS and and certification and you know in the training and certification. So that really was an an strengthen our financial systems and it wouldn't have happened if we were not clear about it. We not accepting that there big shortcomings to be dealt with. However, the good part was and they also looked at our portfolio.
Okay.
And the first thing they said is you guys have concentration risk.
Okay. So what to speak to that? And I was like what is concentration risk?

26:56
Yeah. Never had the term
never had what is this?
He said 10 clients five clients actually I think around five clients are giving you over 80% of your revenue. It was very true and at that time I think we were already doing close to approaching to 2 million USD in terms of turnover uh revenue. So immediately we had to look at how do we diversify
the portfolio
our portfolio. So two things happened. One is as a result of that one. The other one was just a natural eval evolution if I may say so because it was the we look at the customer and what they are trying to do
and then we plug in and provide a solution. So the irrigation for example they will ask us and can you solarize a pumping system either from boho or from the river from bohole we find it is very expensive water and yet when people are using service irrigation that is flooding the whole land

28:03
it does not make sense it is one wastes a lot of the water they use a lot of energy and they get very little yield out of it
so we said why don't we do drip irrigation with you and then you know it's I think it is an obvious one so they say yes to it and we are in business
and the mini grid like for example we started with and there was repatriation from and Kenya that is the refugee camps to a place in Somalia.
Yes. So we partnered with a UN UNR as well as an American entity called Alite
and we designed a system that was and and and one centralized system for a model village.
Okay. And uh that was we did the generation, we did the distribution and the billing and it was actually mobile based billing. So it was very interesting and then now we were asked to do another one and another one. So when you talk about miniig grids what size?

29:05
So that one typically the mini grids that we were doing were between 40 kilowatt to about 200 kow.
Okay.
Okay.
And of course that looks a decent size in our part of the world. Of course in other parts of the world mini grid is 10 megawatt. Okay. So 10 megawatt here is a big thing. Yes.
And so that that is the size that we are talking about. So some the solutions that we were having were born out of that need
and uh but in terms of diversification now we started looking our different customer profiles and we went into private also and not only on the NGO side then we started distribution as well because right now I would say our development part is less than 20%.
And from 80%.

29:54
Yes.
Yeah. So that is how the diversification came about. Some of it was just a natural following. Yes.
Need what is happening on the market? What do people need? What do our customers need?
And then just addressing those and yeah [clears throat]
and then the other one was coming from data
and advice of experts telling you you have concentration risk and you need to look at it. And by the way it served as well
because we grew through elections
we grew through co we had 20% growth.
Wow.
Okay. So that diversification was really important for us and in terms of growth outside and the Somali one came as a natural thing because of my
developmental partners.
Yes. Developmental partners and the fact that I had the opportunity to go out there.

30:46
Yeah.
And Zambia also came as an opportunity because Zambia relies a lot on hydro.
Yes. So the moment farm mine after farm mine started coming.
So they started doing load shedding.
Yes.
And there's a friend of mine who works with H petroleum was based in that country.
They picked the call and told me this this blackout here to be addressed
and he responded and and opened an office and uh so that is how it has happened. But we have been also looking at you know Ethiopia is mainly through our customers because of the multinationals that we have been working and they work in multiple countries. Yes.
So like the projects we have done in in Ethiopia was mainly through customers who said we did this with you in Kenya or in Somalia. Can you do the same in Ethiopia? Same in Tanzania. Okay. And uh we one of our customers said I need a system that is highly automated and we have done with you in Kenya and Somalia and we want it done in Tanzania. We haven't found a contractor to do that. Are you willing to do it? And we went in

31:59 and and and did so also our clients were also helping us move into some of these markets.
Okay. Abu Bakr let's talk a bit about the product.
Yes. Because when you originally started, you were distributor, you know, uh you when you started with your little shop in Garisa, you are going to buy from someone and come and resell.
Yes.
How has your product evolved? Are you still doing distributor? Is there a mix? Is there products that you've developed? Because you seem to have a lot of insights of the market and you continue to get insights from your customers. You know like if I think about what you have just told us about the mini grid. The mini grid is not just solar lighting cuz in that you you you did the solar generation you did the power generation

32:46 you then did the distribution so that's a networking issue and then you went and did the billing that's a software issue and then you did the billing through mobile
that's another issue. So maybe let's talk a bit about the evolution of your product offering
over and above just power generation. How has that journey been?
Thank you. So we started as you said buying small systems and stocking them in Garisa and to sell. So basically torches and small lights and small products. But then after college we actually concentrated more on engineering
and listening to the clients and designing solutions based on their need.
Okay.
So in the first five or six seven years we were purely an engineering company designing solutions for problems that we were encountering on a daily basis.

33:42
Okay. as we work along the developmental partners and and because we were working in Somalia, we entirely had to develop a supply chain sourcing for equipment stock in them because you can't find them in the market.
Yes.
So what that meant is now we are importing equipment from Germany, from Netherland, from China, from India, from Taiwan,
name it.
Yes.
And keeping inventory. So one of the discussions and in the leadership meet teams we saying like the problem we addressed for ourselves the others who have the same problem that is upcoming engineering companies and installers who are designing solutions but don't have equipment.
Mhm.
So we said why don't we sell the equipment to them as well.

34:36
Yes. And then the question also then there was the push back from of course the team me some of the team members like but they see us as a competitor because we're competing with them on the engineering side
and we said you know what what if we give them a fair price I don't think that our competition will be
an issue
an issue so we decided to give them a fair price okay a price that they can buy and actually sometimes even out bid us when the engineering side.
Yes.
So that meant so there was skepticism at the beginning but it picked and they realized you know what I think they mean business. So they're not just telling us because the price they give us we can still compete with them. So our distribution business started. So now we are mainly selling equipment of manufacturers that we have partnered.

35:30
Okay. But sometimes the challenge is you bring product to the market, you build the market and then others want to become distributors as well.
Yes. Yes.
And manufacturers not every manufacturer will just say no sorry
I was not selling anything this market now I'm [clears throat] selling through because of the hard work of this company
but they will say the more
the merrier
and you realize you put in the hard work but the yield everybody's harvesting.
Mhm. So we decided also now and of course the more you interact with companies the more you realize it's not the way you think that everybody who is selling a product manufactures a product.
Yes.
Okay. So we realized ah okay we can actually have our own brand. So now we have two brands.

36:23
We have Makbul.
Mhm.
Okay. Which is mainly our PV system.
Okay. And then we have hunty which is mainly our water products.
Okay.
So now we are working with manufacturers who do branding for us. So what they call OEM.
Okay.
So now we have our OEM product in the market.
Nice.
We are still carrying the other products. That's the product that currently we're doing. The thinking [clears throat] is at some point we should be able to do and because you know the parts are manufactured
because most of the products that we get even our phones already the car
the manufacturers the best of them the most advanced of them just do some core component okay
everything else is supplied by someone else

37:11
okay
some other people okay
so we have now the brand we have introduced into the market is doing very well the next step for us is to bring the parts and do assembly in Kenya and hopefully who knows maybe some time.
Now you touched on when we were speaking about your your your famous audit.
Yes.
Which brought you financial structure.
Yes.
Um and I now listen to your story in in in greater context. You benefited a lot from getting this early investor. Yes.
Yeah. Both financially. But if you if you now look at your business and the story the one example you gave us of the financial audit that they commissioned which showcased your shortcomings.
Yeah.
What are other advantages other than capital?

37:57
Yes.
That you benefited from as a business by having an early investor and a fresh pair of eyes. We have seen two. We have seen the audit which cleaned up your finance department and your financial reporting and and and governance
but we have also seen your product diversification which was brought about by the identification of uh concentration risk.
Uh what else did you benefit from from getting investment rather early in your business? And uh first I think opening up your business to an external party is one of the hardest thing
to do
and uh especially when you have weaknesses and the I there's no business which is at startup stage or at say scale stage that does not have weaknesses and uh when you allow someone to come in and you do it with transparency. There are a lot of things they will pick because there are some things that you pick and you ignore yourself hoping that it's okay or I can or sometimes you don't even pick them because you're so busy

39:16 with the dayto-day operations and you don't see them and as a major issue. So when they come in, they generally look at the business from an outsider point of view. Someone who is investing in the success of the business and they call you out because they have no reason to be nice to you.
Okay. [clears throat]
And because they are not your friend, they're not your family member.
Yeah.
They're not so much about your feelings is about what can make this business success. So first that is very important and especially when you get a value and partner or and you get an investor who is more than just money. Okay. So they come in and they really tell you what is working and what is not working. But also of importance is to act on what they're saying because if you don't act on it then it doesn't help. and uh but

40:17 just generally and uh to reflect on the environment of 2010 and the environment of today. I remember 2010 there were very limited support systems for entpreneurs that were available.
Yeah. And uh today there are I don't know probably more than 20
true
and uh entities that support entpreneurs and I advise any entrepreneur to really take advantage of them. So at the moment if I may just go a little bit because we got those guys they made an investment in them in us and we paid back the investment as agreed because it was a 5year investment.
Mhm. And uh
so this was debt not equity.
It was debt actually we could call it repayable grant.
Okay.
And because at that time you know and I don't take interest we don't take interest

41:18
based so and they wanted to support businesses that were working in fragile
okay
and economies. Mhm.
So it was a deal that was actually both both of us were
so refundable grant product.
So we got working capital
and they were able to get back that money and reuse it.
Excellent.
Okay. So it worked both sides and I remember when we paid and finished by that time the gentleman had left and no had grow had went up in the organization. So he become the CFO.
Yes. So I remember, you know, he was really happy. Happy because he invested and believed in a company that could not get their papers together.
And by the time we paid back, we were a company that had already grown and only on the Somali side almost 4 million revenue and we had structures and we you know had already attracted investors and uh because now we we were doing very well. I I I don't think that we failed any due diligence after that.

42:23
Nice.
Yeah. So, open up it is very important and we continue to still have others invest in our company including even today.
Yes.
We have an a very strong investor and we have given them an observer position in our board and who comes and sits in our board and uh you know and we have nothing. We feel the more we share the more we get.
Yes.
Yeah.
And I I I like that. I like what you've used as examples because it also speaks to your intent and I think the honesty with which you speak, you know, if you um you mentioned earlier about what the the meeting that you had where there were seven on one side and it was you.
Yeah.
And they said, "Have you seen the management uh uh letter?" And I think that speaks to your intent because when when your intent is pure then you're not scared of your mistakes. Yeah. And I I I I also find that um a lot of that's that's something that it's important for entrepreneurs to learn particularly in a Kenyan context that if you are setting out to do something your mistakes can actually be great learnings

43:39
and great foundations for you to get better
because your attempt is to achieve certain goals not to show that you're the greatest.
Yeah.
And you also acknowledge what you don't know. Yeah. So let's come to the present. Uh we've now have a we have a great understanding of your business. You have grown over 15 years. I think this is your 16th year if I'm not wrong.
This is our 16th year.
You're in your 16th year. You're in multiple uh African markets and continuing to grow. Let's speak a bit about the future. What does the future look like for technology? What would you like to do? You you you mentioned in passing about uh exploring manufacturing locally. Um so what does the future look like for solar technology?

44:23
And one of our greatest strength has been and uh providing good solutions.
Mhm. and uh to communities and individuals who do not have access to either you know the grid or do not have access to quality water. And by the way, one thing that we didn't agree uh we didn't sorry and add is water treatment. So we do have water treatment treatment solutions as well.
Okay. And uh and the question has always been for us is how do we get closer? And now we have set ourselves on a journey and where we want to open at least 15 new locations in Kenya and up our country operations into five. Okay. And uh and I believe once we are able to do that then we can be able to do more solutions and uh grow our staff number and currently we are 60.

45:46
Okay. in on the Kenyan side and I believe we can solar especially and water and irrigation can really be a good transformational tool. Energy is the backbone.
Yes,
water is the backbone. And those two if you look at this continent still on aggregate less than 40%
have access to quality affordable energy and water.
True.
What actually I would say is not even 50.
50 are the ones who have access.
But to quality water access
I would think it's 10 less than 10%. Even Nairobi. Can you drink the water only from your tub? No, you can't. M and so we believe that and the this is a big challenge and uh for the continent and uh that is the next you know by 2030 we want to be in five countries and we want to have 15 locations.

46:53
Excellent. But in 10 years, we definitely want to be in 10 countries minimum. And every country that we go into, we don't want to have one location.
We want to have multiple locations so that we are very close
to the end users of our product.
Excellent.
Yeah.
Excellent. What's your what's your read of the landscape as it is now? Um we started earlier before we started look uh recording this podcast. we started talking about how uh we need to look at our market differently, you know, in the sense that I I find that Kenya um sometimes we're at risk because we can be very cynical.
There's an advantage to that cynicism because we are constantly demanding better and better and better.

47:43
But I feel sometimes we throw the baby out with the bath water. We
we don't stop to celebrate what we're doing. So maybe we could get your views on how the market has been with this 15 years experience in and I dare say good experience because it's not urban experience. you're out in the sticks, you know, you're exe executing in in places where most urban Kenyans don't get to see or maybe they drive by in in in on their way to holiday somewhere, but it's not their day-to-day life and that's what you experience. So, it would be I'll be keen to hear your insights on what you see where we are and what the opportunities continue to be. Um I Kenya is blessed I dare say and uh we are one of those countries that I believe we have the right ingredients. We just need to cook better.

48:51
Yes. And uh the reason why I say is I have been to a number of African countries. And the moment you go to those other countries is when you realize how talented our people are and uh the amount of resources that are our disposal and also the goodwill that we have across the globe. And uh today more than any day before and uh our youth have opportunities to become entrepreneurs and uh and the environment if you look at it whether it's value addition
um whether it is in the construction side of things and there's so many opportunities that are opening If you look at what is happening on the technology front, Kenya is cited as one at the forefront.
Yes.
And I think last year there was a report of how much funding was done in the startup space

50:04
and Kenya had attracted the biggest chunk of that money of any country in Africa. Yes.
Even bigger than South Africa and Nigeria. M
so I think almost 30% because I think 60% or amount came to East Africa
and Kenya had almost 50% share
of that
so opportunities do exist goodwill do exist and if you just forget about the noise and all the other things that are going on and focus
I believe this is the America of Africa.
Wow.
Yeah. And I firmly believe
I agree with you.
I share that belief.
Yes.
If people are talking about America as the land of opportunity, I think they need to look at Kenya.
And [snorts] you need to look at the number of Americans who come to Kenya and don't go back.

50:57
Yes.
Okay.
Fair enough. Fair comment.
Yes.
Excellent. So Abu Bakr maybe now uh as we wind down uh come to the end of this podcast uh give you a chance to speak to the audience and just tell them about solar gen technologies where can they find you what are your um uh social media handles so that they can connect with you and the various things that you do offer. I know we have covered them at length during the podcast but please do share with the audience how they can connect with solar technologies should they wish to interact with you either for a quote or for business. Um yes
and we are on all the major digital platforms. So our website is ww.solentechnologies.com.
Okay. And uh our Facebook is solen East Africa and uh our Twitter handle is solen techch and our office is located at Cabanas. That's where we have our showroom.

52:03
Okay.
And warehousing workshop. So if you come there then you will see the whole of Solen.
Okay. Um the products currently we provide uh we provide residential solution and uh for residential we have the water treatment arrow the small one that gives you enough water for your family for cooking and drinking. We also have solar water heaters for you to have hot shower.
Yes. And we have solar offgrid or and hybrid system which will ensure that your electricity bills
okay
are going to be zero. If you have business we also have and commercial solutions and uh
yeah that's quite that's quite a diverse portfolio.
Yes. And uh maybe um to the entrepreneurs out there and maybe I I I I didn't come to sell today but I'm thank you for giving me that opportunity is

53:05
just get started.
Yes.
And uh hard days are part of the journey and uh but the truth of the matter is from my own experience and the ones that I have spoken to. Yesterday I was sitting in a meeting where another entrepreneur was talking about his journey
is it is very rewarding.
It is
challenging but very rewarding. Get started and work with what you have
exactly
and the truth is none of us knows tomorrow but if you just keep going the universe will unfold as it should be.
Excellent. I I had made a mental note. I had forgotten and I made a mental note to ask you about uh something I saw on your website.
Um a office with a demonstration farm in Wajir.
Yes.
Yes. So maybe you can just tell us a bit about that. I found that to be quite an interesting thing.

54:09
So thank you. I you know despite doing all the works that we are doing across multiple countries.
Yes.
We had not opened a place in the north.
Yes.
Okay. And a lot of people will ask me what are you doing in the north.
So co came.
Yes.
And now I traveled and to Garisa to realized that people were right to ask me that.
Yes. So we decided to build an office with a demonstration and where we have a small demonstration block
and we did about eight crops
including strawberries.
Okay. Okay.
Just to show people
that actually it's possible.
Mhm.
And we put up also a small water treatment which initially was just for our office.
Yes.
But people were coming to fetch water.

55:02
Oh wow.
Okay. And then we started now selling the water and we realized that and maybe taking across the town will be a good idea. So we got ladies who are operating shops and we told them okay if we put a clean water tank here
and we give you at a discounted price can you? And they said yes. So we partnered with them. So about I think about 10 of them and we give for 20 liter we sell to them for 60 shillings and they sell for 100 shillings.
Wow.
And 20 24 actually board my board asked me tell us more about the water and we had to prepare a small report.
Mhm. which shocked me personally because and we see in the numbers but we didn't also keely looked at and we realized about we had translated to USD because some of our board members

56:03
that's what they understand. Yes. So 45,000 USD was made by those ladies out of that waterow
of just one plant.
Wow. So, and those small things that you do, you don't think big about it like this is just good, you know, doing. But when you look at it, 45,000 USD for 10 ladies, that's about 4,00 500 USD.
That is a lot.
That's big money.
Yeah, that is big money.
Excellent. [snorts] Abu Bakr, I've really enjoyed the conversation we have had. you we align on a lot of things and I wish you all the very best as you continue to grow and develop solar may it grow and can you achieve may you achieve those uh those dreams and aspirations that you have. So thank you very much
for accepting to be a guest on the African do podcast.

56:53
Thank you Leonard for having me.
Yes. and thank you for you know bringing these stories and uh they really inspire others because in Africa support system is not available
and when people see other entrepreneurs talk about their journey
yes
I believe
we can change
and by the way
somebody said
Mhm. that we need to prepare the leaders African needs
and I'm glad that you're preparing the entrepreneurs African need.
Agreed.
Thank you.
Ladies and gentlemen, that was episode 62 of the African do podcast featuring Abu Bakr Idarus and a great story around Solar Gen Technologies. Check them out on their website, Twitter handle, Facebook page and see what they're doing. And if you're in the area in Cabanas, visit them at their site and go and see what um equipment they do quite a bit starting from power generation going into water treatment to irrigation

57:59 um equipment. So have a look at them and we look forward to seeing you. Uh African do we continue to tell our African stories and African entrepreneurial journey. You can find us on YouTube and with our short clips on Tik Tok, Instagram, and Facebook. And we look forward to having you with us in future episode. Thank you very much and have a good weekend.