News
DAIKIN PARTNERS WITH
aikin Industries has begun a demonstration in Tanzania for
a new business model with WASSHA, a company using IoT
technology to develop an electrical power service business in
the non-electrified areas of Africa.
In the demonstration, Daikin will take advantage of
WASSHA’s business know-how, unique human talent, and sales
network in Tanzania to introduce high-efficiency air conditioners
to small stores and ordinary homes in Tanzania through a
subscription method and verify business feasibility.
The verification period ran for three months ending February
2020. Together with planning an air conditioner subscription
business, Daikin intends to construct a payment system using
mobile money with the goal of starting a full-scale business in
fiscal year 2020.
This collaboration was realised under the initiatives taken
for Social Implementation of New Value through Collaboration
with Venture Companies, a theme of the industry-academia co-
creation agreement concluded with the University of Tokyo in
December 2018.
WASSHA, a start-up company associated with the University
of Tokyo, is developing an electrical power service business
through the rental of LED lanterns in the non-electrified areas
of the Sub-Saharan Africa region focusing on Tanzania. A kiosk
network of small stores handling basic necessities spans the
entire country of Tanzania from the suburbs to the villages
where electricity is unavailable. The LED lanterns will be offered
in a ‘Pay-as-you-go’ system in which users pay only for the
electricity that they use.
Similarly, Daikin is currently aiming to develop an air
conditioning business in Africa where long-term population
growth is expected. It is also promoting business development
The market
penetration rate of
air conditioners in
Tanzania is low,
and low-priced
models with high
environmental impact
account for a large
part of the market.
IMD
TANZANIAN IoT FIRM
D
from India to East Africa by exporting products developed and
manufactured in India, a country that requires stable operation in
an environment of unstable electrical power supply. In September
2019, Daikin established a Nairobi office in the Republic of Kenya
and began local market research and sales network development.
The market penetration rate of air conditioners in Tanzania is low,
and low-priced models with high environmental impact account
for a large part of the market. In this collaboration, a subscription
method will provide high-efficiency air conditioning with low
environmental impact by using air conditioners equipped with
inverter technology developed by Daikin and low global warming
potential (GWP) refrigerant. In this way, Daikin aims to construct
a business model that reduces user initial costs and produce
revenue even in small immature markets. While focusing on
expansion to other immature markets, Daikin is also working to
create an air conditioning culture of low environmental impact
from the initial stage of introducing air conditioners.
Daikin has set aside USD100-million (R1.4-million) for use in
investments targeting global start-up companies over a five-year
period until 2024 and is investing YEN300-million (R40-million) in
WASSHA for its first project. RACA
ELECTROVENT
GETS NEW SALES
MANAGER
C
harles Deacon is the newly appointed sales manager
at Electrovent. He officially started at the beginning
of the year. With over nine years’ experience in the HVAC
manufacturing industry, he hopes to apply what he has learnt to
grow the company in the Gauteng region. . RACA
www.hvacronline.co.za
RACA Journal I April 2020
11