African Development Bank's Sustainable Energy Fund for Africa (SEFA) supports electric cooking expansion across three African nations
Burn, a Kenya-based clean cookstove company and carbon developer with operations in over 10 African countries, will implement BEEP. This program makes clean cooking appliances more affordable and accessible by prefinancing induction cookers and recovering costs through carbon credit sales in the voluntary market. This innovative model combines carbon-backed subsidies with pay-as-you-go payment plans, significantly lowering upfront costs for end-users.
Capitalised through a Special Purpose Vehicle (SPV), the Program is funded by a $5 million senior loan from the Spark+ Africa Fund, a $4 million reimbursable grant from SEFA, and $1 million in equity from Burn Manufacturing Company. This SPV will partner with Burn to manage sales, distribution, and servicing of the cookers. The appliances will generate carbon credits, owned by the SPV, with revenues shared among investors.
Dr. Daniel Schroth, Director for Renewable Energy and Energy Efficiency at the African Development Bank Group, stated, 'This marks the Bank's first carbon finance transaction of its kind, with SEFA playing a critical role in mitigating carbon market risks and enhancing the Program's financial sustainability.'
The program aligns with SEFA's thematic area on Energy Efficiency, catalysing private sector investments in efficient appliances and promoting scale-up of clean cooking technologies. It also supports the Mission 300 Initiative and the Bank's New Deal on Energy for Africa, which aim to deliver universal energy access through low-carbon solutions.
'We are honoured to receive this catalytic investment from the African Development Bank's Sustainable Energy Fund for Africa—their first-ever investment in carbon projects focused on electric cooking. This milestone enables BURN to rapidly scale our IoT-enabled induction stove across Kenya, Uganda, and Zambia, providing low-income households with a zero-emission, digitally monitored alternative to charcoal and wood,' said Peter Scott, Founder and CEO, BURN. 'By integrating cutting-edge technology, carbon financing, and mobile-enabled Pay-As-You-Cook models, we are demonstrating that electric cooking can be clean, affordable, and scalable across the continent.'
In addition to environmental and health benefits, the program will stimulate job creation and fortify local supply chains within the three target countries, paving the way for a cleaner, more prosperous future for communities across Kenya, Uganda, and Zambia.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
ABOUT SEFA:
SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. The Fund's overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and the M300.
About the African Development Bank Group:
The African Development Bank Group is Africa's leading development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries. For more information: www.AfDB.org
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