Superfly report to IUCN Special Initiatives Grant INTERNATIONAL UNION FOR CONSERVATION OF NATURE 1 Superfly 12 month Report Introduction The International Union for the Conservation of Nature provided Superfly, Ltd. with a US$10,000 grant to create an enabling environment for bicycling in Solomon Islands rural areas. This is the 12-month completion report under this grant with updated 12-month sales figures and a final summary of the impact of te grant and the current state of cycling in the Solomon Islands. Cycling is a much needed land transport solution in rural areas. However, availability of bicycles is low, despite plenty of sealed roads and high quality gravel roads that exist throughout the country. Bicycles represent a fantastic transport solution for rural Solomon Islands people to save time, money, and both improve and maintain their fitness. Better transport means improved access to markets, employment opportunities, and services. Improving access to cycling in rural areas was the motivation and focus behind the grant. During the past six (6) months, Superfly was able to train five (5) rural bicycle mechanics from; Lata (Temotu Province), Kirakira (Makira Province), Ulawa Island (Makira Province), Hulavu (Guadalcanal Province) and Malu’u (Malaita Province). The mechanics each partook in a 5-day training course, during which they learned/brushed up on fundamental bicycle repair skills. All of the participants were of medium-to-advanced skill level and were enthusiastic participants. The list below shows the tasks that were covered during the training course: • Puncture and valve repair • Straighten derailleur hanger and tune gears • Adjust/tighten brakes • Lubricate brake and gear cables • True wheels • Remove and repair chains • Check tightness of all bolts and screws • Degrease and lubrication of drivetrain • Regrease bottom bracket • Provide training in basic inventory control It was originally envisaged that bicycle shops would remit monies back to Superfly and re-order via mobile banking. However, access to this telecommunications service is difficult and it was found users preferred to come back to Honiara which provided them an opportunity to choose their new stock and a chance to pay in cash. The trainings had to fit in around the shop’s operating periods, which was difficult to manage during peak Christmas period. The shop was also closed for most of the month of January, which took some momentum away from the grant. As such, two of the trainings took place in November, with the remaining trainings being completed in April and May, 2016. Figure 1: Don Conning (Hulavu, Guadalcanal Province Operator) Figure 2: Harvey Kuper (Kira Kira, Makira Province Operator) Superfly 12 month Report 2 Sales Figures The table below show the sales figures and estimated revenue1 resulting from the sale of bicycles, parts and servicing from each of the mechanics. These figures were reported during June 2016. Table 1: Sales figures to 30th June 2016 Estimated Revenue Bicycle Revenue From from Bicycle Full Name Address/Village Date of Training Sales to Bicycle Servicing Sales TD Date & Sale of Parts (SBD) (SBD) John Nupani Lata, Temotu Province 2/11/2016 12 17,160 3,000 Harvey Kuper Kira kira, Makira Province 16/11/2016 5 7,150 3,000 Pastor John Mala Ulawa Island 4/04/2016 37 52,910 6,000 Don Conning Hulavu, Guadalcanal 19/05/2016 5 7,150 500 Junior Dani Malu’u, Malaita 26/05/2016 5 7150 500 SUBTOTAL 64 91,520 13,000 Nominal Exchange Rate TOTAL SBD104,520 (USD13,644.91) SBD7.66 : USD1.00 The table below shows the final full year sales figures for the 5 enterprises. Table 2: Cumulative sales figures to the end of December 2016 Estimated Total Bicycle Revenue from Revenue From Full Name Address/Village Date of Training Sales to Bicycle Sales to Bicycle Servicing 31/12/2016 31/12/2016 & Sale of Parts to 31/12/2016 Lata, Temotu Prov- John Nupani 2/11/2016 35 49000 9500 ince Kira kira, Makira Harvey Kuper 16/11/2016 11 15400 5500 Province Pastor John Ulawa Island 4/04/2016 45 54000 14000 Mala Don Conning Hulavu, Guadalcanal 19/05/2016 8 11200 1500 Junior Dani Malu’u, Malaita 26/05/2016 35 49000 18500 SUBTOTAL 134 178,600 49,000 Nominal Exchange Rate TOTAL SBD227,600 (USD29,712.79) SBD7.66 : USD1.00 1 Revenue estimates are derived based on recommended pricing provided to the participants. It is known though, that some of the bicycle proprietors are bartering bicycles for goods and services, though this has occurred at a favourable enough rate to encourage re-purchase (particularly in the case of Pastor John from Ulawa) 3 Superfly 12 month Report Outcomes and Discussion Superfly is extremely enthused with the outcomes of this grant allocation, and is buoyed by the increase in reach to the rural communities of the Solomon Islands this initiative has delivered. The initiative has directly lead to an additional 134 bicycles being sold in rural areas (from Superfly-trained mechanics), with an additional 60 bicycles from the Honiara shop being sold in those same communities to other interested parties. In addition, Superfly has continued its ‘bulk rural sale model,’ and has sold well over 100 bicycles into East Guadalcanal; through two large bulk sales to the Member of Parliament for East Guadalcanal (the Hon. Sam Maneka) accounting for 85 bicycles, and through regular bulk sales to a local company, Sustainable Resources Management, whose labour staff work only 15 kilometres east of Honiara (which means that they can come to the shop themselves for servicing and spare parts) Another heart-warming success story came from a regular customer, Malcolms Andy; an electrician working in Honiara (originally from Isabel province) who teamed with his uncle (a prominent lawyer in Honiara) to send 20 bicycles (mainly BMX) to his village in Isabel province. Malcolm’s contact in the village hires the bicycles to children for 5 dollars an hour or 30 dollars a day as a way to provide exercise and recreation for kids there. Figure 3: James Kana, Munda cycle order Another noteworthy benefit of the grant was through training and support offered to James Kana, who has attempted to set up a rural bicycle enterprise in Munda. James purchased and sold 20 bicycles into his local community to give the community access to bicycles. However, his bicycle sale business has suffered due to the influx of free bikes provided by Childers Rotary group from Queensland. The Childers Rotary2 group donated over 150 bicycles into Munda, which has affected the willingness of people in Munda to pay. However, many of those bicycles are in disrepair and require servicing, which has provided strong motivation for James to develop mechanic training at the site. James has purchased a small amount of parts to support the shop, but he has delayed further effort in building the shop (and buying bicycle stock) because he wants to build an eco-tourism based guest-house in Munda. A lot of these sales were inspired by IUCN’s involvement, as it prompted Superfly to consider setting up a distributor network beyond Honiara. 2http://www.news-mail.com.au/news/bikes-solomans/2685943/ Superfly 12 month Report 4 The initial aim of the grant was to lead to the sale of 2,000 bicycles in the Solomon Islands by the end of 2017. To date, since December 2014, Superfly has imported six (6) containers, at an average of 250 bicycles per container, or approximately 1,500 bicycles. Superfly will be looking to place an order for its 7th container of bicycles in February/March 2017. The target of 2,000 bicycles by the end of 2017 seems very likely, and it is possible these figures have already been surpassed, as there have been a number of recent ‘copy-cat’ entrepreneurs who have imported used bicycles from Japan to emulate Superfly’s bicycle business. These businesses are home-based; one of which is located at Henderson (near the Honiara airport) and the other is in Koloale (about 2km from the Honiara CBD). Each of these businesses does not carry the payroll and rent overhead of Superfly, and are also selling their bicycles in an ‘as is, where is’ condition; whereas Superfly often fixes parts, replaces broken parts, and gives the bicycles an overall tune-up before selling, with a 3-month warranty included. The challenge of increased competition has seen a reduction in the sales rate of bicycles at the shop, and in increased focus on repairs and the sale of parts. However, overall, it will lead to a greater uptake of cycling, and potentially, more demand for a service industry to support cyclists (which Superfly and its trained mechanics are now well positioned to provide).Increased competition and a greater number of cyclists on the road are signs that awareness and uptake of cycling in the Solomon Islands has increased– another aspect of which IUCN can be proud. Conservation Outcomes One key purpose of the IUCN Oceania Regional Office Energy Programme is promoting the connection between energy independence for the region and the opportunity to further conservation outcomes and prevent environmental degradation. One of the largest threats to biodiversity and the fidelity of ecosystems throughout the Pacific Island Countries is a reliance on imported fossil fuels for energy services in both the transport and electrification sectors. The EESLI Special Initiatives grant to Superfly, Ltd. served as one of the range of small seed funding projects to help encourage a shift in perspectives, consumer habits, and market opportunities within the region. So as a measure of impact, it’s useful to estimate the fuel, time, and cost savings associated with mode-shifting toward bicycle use.