APO

African Development Bank Invests in Pioneering SPARK+ Africa Fund to Deliver Clean Cooking Solutions

Published

on

The African Development Bank’s (https://www.AfDB.org/) Board of Directors has approved a $5 million investment in the SPARK+ Africa Fund to deliver clean cooking solutions to over two million households across Africa.

The European Commission will contribute an additional €10 million. The Bank’s investment, which will come from its Sustainable Energy Fund for Africa (SEFA), is expected to enable the participation of other interested investors. As an anchor investor, the Bank will channel first-loss equity from SEFA and the European Commission thematic blending facility.

In addition to delivering clean cooking technologies, the investment is expected to reduce carbon emissions by 15.9 Mt of CO2 equivalent, by cutting emissions from the use of inefficient stoves and open fires and forest degradation for wood fuel.

Switching to cleaner cookstoves reduces exposure to harmful cooking smoke and the time spent collecting firewood, a burden that falls disproportionately on women.

“By investing in the rollout of clean cooking solutions to millions of households, the Bank is also contributing to women’s empowerment, employment creation and reduced deforestation associated with charcoal production,” said Dr. Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate and Green Growth.

The investment complements the Bank’s wider efforts to address the impacts of the COVID-19 pandemic, he said: “Positive health impacts from the reduction of household in-door air pollution also contributes to resilience toward diseases attacking respiratory systems such as COVID-19.”

Dymphna van der Lans, Chief Executive Officer of the Clean Cooking Alliance said: “The Clean Cooking Alliance is very pleased to have collaborated with Enabling Qapital, the African Development Bank, and the European Commission to develop this ground-breaking investment facility. We believe the SPARK+ Africa Fund will have a tremendous impact in the market and accelerate clean cooking sector growth to positively impact the lives of millions of people in the years to come.”

Xavier Pierluca, Managing Partner of Enabling Qapital stated: “We have designed the SPARK+ Africa Fund to take an ecosystem approach to further the outreach of quality solutions to low-income communities by offering tailored investment instruments throughout the value chain from design and manufacturing companies to last-mile distributors.”

SPARK+ Africa is a pioneering impact investment fund launched by Enabling Qapital and the Clean Cooking Alliance to channel debt and equity financing to enterprises that manufacture, distribute and finance clean cooking solutions across Sub-Saharan Africa. The Fund targets a capitalization of $50-70 million.

The scale of the challenge of widening access to clean cooking in Africa remains daunting, in part because much needed investment has been hindered by high perceived risks and, in many cases, a return profile insufficient to attract commercial investment. The SPARK+ Africa Fund is a direct response to this challenge and is a key component of the AfDB’s response to the clean cooking challenge. The investment in the Fund’s first-loss tranche will directly address a critical financing gap and enable the participation of other interested financiers.

The Clean Cooking Alliance works with a global network of partners to make clean cooking accessible to the three billion people who live each day without it. Enabling Qapital Ltd. is an impact investment advisory company with a track record in advancing financial inclusion and access to energy.

SEFA is a multi-donor special fund administered by the African Development Bank and anchored by the Governments of Denmark, the United States, the United Kingdom, Italy, Norway, Sweden and Spain ─ to support Renewable Energy (RE) and Energy Efficiency (EE) projects in Africa.

The approval was made on November 24, 2020.

NNN

NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

Coronavirus: African Union Member States reporting COVID-19 cases as of 16 January 2021, 9 am EAT Coronavirus – Namibia: COVID-19 Update 15 January 2021 Coronavirus – Malawi: COVID-19 update (15 January 2021) Coronavirus – Rwanda: COVID-19 update (15 January 2021) Coronavirus – Zambia: COVID-19 update (15 January 2021) Coronavirus: African Union Member States reporting COVID-19 cases as of 15 January 2021, 6 pm EAT Coronavirus – Sierra Leone: COVID-19 update (15 January 2021) Coronavirus – Zimbabwe: COVID-19 Update (15th January 2021) Coronavirus – Gambia: COVID-19 update (15 January 2021) Coronavirus – Ethiopia: COVID-19 update (15 January 2021) Coronavirus – Nigeria: COVID-19 update (15 January 2021) Coronavirus – Kenya: COVID-19 update (15 January 2021) Heirs Holdings Significantly Expands Oil and Gas Portfolio Emergency Committee on COVID-19 advises on variants, vaccines Coronavirus – Eswatini: COVID-19 update (14 January 2021) IOM Somalia supports new ‘telemedicine’ enhancement for migrants and host communities Coronavirus: African Union Member States reporting COVID-19 cases as of 14 January 2021, 6 pm EAT Ogun Govt begins registration and payments for 2021 Hajj Coronavirus – Ethiopia: COVID-19 update (14 January 2021) Coronavirus – Malawi: COVID-19 update (14 January 2021) END SARS: Winners Emerged at the National Poetry Competition Coronavirus – Kenya: COVID-19 update (14 January 2021) Coronavirus – South Africa: COVID-19 update (14 January 2021) Coronavirus – Zambia: COVID-19 update (14 January 2021) Coronavirus – Zimbabwe: COVID-19 Update (14th January 2021) Coronavirus – Eritrea: Announcement from the Ministry of Health (14 January 2021) Coronavirus – Rwanda: COVID-19 update (14 January 2021) Coronavirus – Nigeria: COVID-19 update (14 January 2021) Number of Central African refugees soars as violence intensifies Mounting hostilities disrupt aid delivery in the Central African Republic UN Delegation visits South West State to discuss support and collaboration in 2021 Statement attributable to the UN High Commissioner for Refugees Filippo Grandi on the situation of Eritrean refugees in Ethiopia’s Tigray region Coronavirus – Gambia: COVID-19 update (14 January 2021) South Africa‘s Workshop17 starts new year as a global awards finalist & announces plans for a new workspace concept in Joburg Senegal already produces Gas: Investors should look Onshore Ogun Govt plans to upgrade Staff Development Centre to Public Service College Concerned about reports of violence ahead of Uganda elections, Secretary-General calls on all national stakeholders to ensure polls are inclusive, peaceful Coronavirus – Rwanda: COVID-19 update (13 January 2021) Coronavirus – Nigeria: COVID-19 update (13 January 2021) OUT NOW! 2nd Edition of “Billions At Play” charts recovery path for African Oil & Gas Sector Coronavirus – Kenya: COVID-19 update (13 January 2021) WHO Eritrea supports the Ministry of Health maternity waiting homes in remote areas with essential supplies atingi eLearning platform reaches nearly 1 Million African youth in 1st year Africa COVID-19 cases top 3 million, first wave peak surpassed WHO Africa Online Press Briefing on COVID-19 in Africa The spectacular rise of Dubai Multi Commodities Centre (DMCC) under Ahmed Sultan Bin Sulayem Safeguard yourself from falling victim to online trading scams Coronavirus – Gambia: COVID-19 update (13 January 2021) WHO Africa Online Press Briefing on COVID-19 in Africa Please Help Bobi Wine and the People of Uganda Urge the International Community to Play an Active Role Calling on The Uganda Government to Hold Free and Fair Elections Without Intimidation and Violence