The Africa Go Green Fund (“AGG”), managed by Cygnum Capital, has agreed to invest USD 5 million to finance the distribution of improved cookstoves across 10 African Countries by BioLite (“BioLite”).
AGG’s investment will result in the distribution of improved cooking solutions to up to approximately 120,000 households across 10 African jurisdictions, which include Rwanda, Uganda, Malawi, Ivory Coast, Senegal, Madagascar, Nigeria, DRC, Zambia and Mali. The investment from AGG is expected to result in up to 1.6m tonnes of avoided emissions over the life of the Project.
BioLite has been a pioneer in developing carbon credits from the use of their next generation improved biomass stoves for nearly a decade, and uses revenues from the sale of credits to make their products more affordable and available to lower income households across sub-Saharan Africa.
Jonathan Cedar, CEO and Co-founder, BioLite said: "We are thrilled to forge this partnership with AGG, whose catalytic financing will play a pivotal role in BioLite’s expansion across sub-Saharan Africa, furthering our goal to serve 20 million people with improved energy products by 2027. We are also grateful to USAID/Power Africa for backing this transaction through legal advisory support."
Laurene Aigrain, Managing Director of AGG, commented: “We are delighted to engage in this strategic partnership with an organization that boasts a formidable footprint across Africa. This collaboration will significantly enhance the accessibility of affordable and clean cooking solutions in 10 African countries and epitomise AGG’s steadfast dedication to mitigating greenhouse gas emissions across the continent."
About BioLite
BioLite designs and manufacturers breakthrough energy technology to cook, charge and light beyond the grid. BioLite distributes clean and efficient cookstoves to low-income households in Kenya, and under this transaction, in Rwanda, Nigeria, Mali, Madagascar, Senegal, Cote d’Ivoire, the Democratic Republic of Congo, and Uganda. BioLite plans to expand its operations to Malawi and Zambia. These clean cookstoves enable end users to replace smoky open fires and inefficient stoves, thereby saving greenhouse gas emissions and improving indoor air quality. Over the past 12 years, the company has grown to 90 employees across its New York and Nairobi offices.
About Africa Go Green
AGG is designed to support activities that mitigate GHG emissions in Africa. The fund provides debt financing to businesses and projects across the spaces of industrial energy efficiency, green buildings, clean transport, and green appliances. AGG was established by KfW and has received funding commitments from the German Federal Ministry for Economic Cooperation and Development (“BMZ”) through KfW, in addition to funding commitments from the African Development Bank (and in its own capacity as the implementing entity for SEFA and the Clean Technology Fund (“CTF”)), the International Finance Corporation (“IFC”), Nordic Development Fund (“NDF”), British International Investment (“BII”) and Calvert Impact Capital. The fund's current committed capital is at USD 166 million.
Africa GoGreen is managed by Cygnum Capital
