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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
4 hours ago
- Zawya
Masdar, Iberdrola achieve financial close for $6.1bln East Anglia THREE Offshore wind project
Masdar, a global clean energy leader, and Iberdrola, one of the world's largest energy companies, today announced they have reached financial close for the 1.4-gigawatt (GW) East Anglia THREE offshore wind farm, in one of the biggest offshore wind transactions this decade. Project financing facilities totalling £3.6 billion (€4.1 billion) have been secured with 23 banks and the Danish Export Credit Agency (EIFO), in one of the biggest such transactions in the sector and the largest ever by Masdar. The financing will cover a substantial part of the total project costs, estimated at approximately €5.2 billion. The facility was oversubscribed by more than 40 percent, reflecting lenders' confidence in the project's fundamentals and the robustness of the partners. Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said, 'The level and profile of investor interest in this financing deal – the largest we have ever signed at Masdar – reflects our position as a global leader in sustainable finance and investor appetite for high-quality renewable energy assets that deliver impact at scale. Today's announcement represents a significant step forward in our partnership with Iberdrola – and in the UK's clean energy journey, supporting the nation in meeting its energy transformation objectives. We look forward to collaborating further with Iberdrola on other gigawatt-scale greenfield projects that will help shape the future of clean energy in the UK and beyond.' Masdar and Iberdrola announced their co-investment in East Anglia THREE this month, with each party taking a 50 percent stake and having co-governance of the 1.4GW asset, which will be pivotal in advancing Europe's ambitious offshore wind development targets. Located off the Suffolk coast in the UK, East Anglia THREE will become one of the world's two largest offshore wind farms when it comes into operation in Q4 2026, delivering enough clean energy to power 1.3 million British homes. The project benefits from long-term revenue security through a 15-year CPI-linked Contract for Difference (CfD) awarded in the UK Government's AR4 and AR6 auctions, as well as a Power Purchase Agreement (PPA) with Amazon signed in 2024. Over 2,300 jobs are expected to be created during construction, with 100 long-term roles supported across its lifetime. The co-investment in East Anglia THREE marks a significant milestone in the €15 billion strategic partnership Masdar and Iberdrola signed in December 2023 – one of the largest ever bilateral alliances in the global clean energy sector – to accelerate clean energy deployment across key markets including the United Kingdom, Germany, and the United States. The participating banks in the East Anglia THREE financing are: BBVA, HSBC, ING, NatWest, SMBC, MUFG, Bank of China, Crédit Agricole, CaixaBank, Santander, BNP Paribas, Helaba, Barclays, ANZ, Rabobank, FAB, ICO, Abanca, Kutxabank, Standard Chartered Bank, Bank of Ireland, CIC and Siemens Bank. Crédit Agricole CIB and MUFG acted as financial advisors for the transaction, and A&O and Shearman acted as legal advisor to the borrower.
Zawya
5 hours ago
- Zawya
African Development Bank and Casablanca Finance City Host Strategic Dialogue to Accelerate African Economic Integration concluded by the Casablanca Call to Action
The African Development Bank ( and Casablanca Finance City (CFC), Africa's leading financial centre, have jointly organized a high-level strategic dialogue in Casablanca to accelerate private sector engagement in the African Continental Free Trade Area (AfCFTA). The dialogue, under theme 'Connecting Africa – The AfCFTA Pathway,' was held on 23 July 2025. It brought together African private sector executives and representatives from major pan-African institutions, including Arab Maghreb Union (UMA), Afreximbank, the African Union Development Agency (NEPAD), the West African Development Bank (BOAD), the Africa Commission of the Moroccan Employers' Confederation (CGEM), OCP Group, Attijariwafa Bank, Africa 50, Tanger Med Zone, Orange, Africa Properity Network and experts from the Boston Consulting Group. The sessions focused on evaluating the current state of AfCFTA implementation and emphasized the need to enhance private sector competitiveness, financing trade-enabling infrastructure, and operationalizing regional value chains. Participants also highlighted the need for a pragmatic approach to regional integration, anchored in the free movement of goods, people, and ideas, and unlocking new investment and trade opportunities. Unlocking a USD 3.4 Trillion Market With a population exceeding 1.5 billion and a combined GDP of $3.4 trillion, Africa holds significant economic potential. Projections indicate that full implementation of the AfCFTA, through the removal of tariff and non-tariff barriers, could boost intra-African trade by 52% by 2035. This momentum comes as Africa positions itself within a rapidly evolving global trade landscape, with 11 of the world's 20 fastest-growing economies located on the continent, according to the IMF and World Bank. Laying the Foundation in Casablanca 'We are here today to lay the foundation for a partnership with CFC, a key player capable of bringing together major operators in Morocco and Africa to harness the full potential of the AfCFTA,' said Joy Kategekwa, Director of Regional Integration at the African Development Bank. 'It is regional actors who will build the business networks capable of catalysing investment, integrating regional value chains, and driving trade.' Lamia Merzouki, Chief Operating Officer of Casablanca Finance City Authority, stated: 'The successful implementation of the AfCFTA hinges on the effective mobilization of the private sector. That's what today's discussion with the African Development Bank is all about, looking at concrete tools to stimulate intra-African trade, identify relevant investment opportunities and facilitate the integration of African businesses into continental value chains.' Achraf Tarsim, Country Manager of the Bank for Morocco, noted: 'This regional approach is effective. We are already supporting it across the continent through strategic investments in transformative infrastructure — roads, ports, railways, logistics corridors—as well as dedicated credit lines to facilitate trade.' Participants reiterated the urgency of bridging Africa's annual infrastructure financing gap, estimated at $130 billion, to fully leverage the opportunities presented by the AfCFTA. Casablanca Call to Action At the end of the meeting, the participants called for the creation of a platform dedicated to the private sector based on four operational priorities: Accelerate market access for African businesses through structured public-private dialogue and by providing practical tools such as market data, market entry guides, policy recommendations, and a continent-wide directory of bankable projects. Bridge infrastructure gaps to support 'Made in Africa' by developing integrated and sustainable economic corridors (roads, ports, rail, and digital infrastructure) and by creating an attractive legal and regulatory environment to mobilize private capital, technical expertise, and regional operators. Enhance regional financial integration through capital markets harmonization, development of trade finance solutions, and mobilization of innovative instruments, including blended finance, pan-African funds, and tailored guarantees to scale up transformative projects. Position financial centres and business hubs as accelerators of the AfCFTA by creating an enabling business environment, attracting talent, building conducive ecosystems, and promoting Africa as an opportunity through awareness-raising, training, and advocacy initiatives. The platform would act as a strategic tool to amplify the voice of the private sector in the implementation of the AfCFTA. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Media Contacts: Casablanca Finance City Authority Communications Department Email: events@ African Development Bank Group Fahd Belbachir Principal Communications and External Relations Officer Email: media@
Zawya
8 hours ago
- Zawya
Rare earths, real stakes: New Deloitte report highlights strategic importance of rare earth minerals in global energy transition
As clean energy demand skyrockets, the report unpacks how rare earth minerals are becoming the geopolitical and environmental fulcrum of the global decarbonization effort, and why governments and industries must act fast to secure sustainable, diversified supply chains. Rare earth needs linked to clean energy technologies are expected to grow by 300–700% by 2040. Dubai, United Arab Emirates – Deloitte's report, Rare Earth Minerals and Their Role in the Energy Transition, highlights the critical role these elements play in driving the shift to a low-carbon future. The report explores rising demand, geopolitical complexities, and sustainability challenges, offering actionable insights for governments, industries, and stakeholders invested in the clean energy economy. Rare earth minerals, used in technologies from electric vehicle (EV) motors to wind turbines and advanced electronics, are set to become even more vital as the world accelerates its transition to renewable energy. The report projects a substantial increase in demand; rare earth needs linked to clean energy technologies are expected to grow by 300–700% by 2040. However, it also warns of supply chain vulnerabilities, as the majority of these essential materials are processed in a few key regions, such as China, which dominates 90% of rare earth processing globally. 'Rare earth minerals are central to the energy transition but the environmental impact of extraction and processing needs to be carefully considered,' said Alexios Zachariadis, Partner at Deloitte Middle East. 'The rising demand for these materials underscores the need for global collaboration to ensure reliable, sustainable supply chains. Governments and industries must move quickly to secure investment in diverse supply sources, pursue technological solutions, and uphold environmental safeguards. This is critical not just for decarbonization, but for maintaining energy security and geopolitical stability.' The report highlights the growing reliance on rare earths for renewable energy technologies. For example, electric vehicles require six times more mineral inputs than traditional internal combustion engines. Direct-drive wind turbines, known for their high efficiency, also depend heavily on rare earth magnets. This dependency poses challenges, especially given the environmental impact of mining and processing rare earths, which can result in land degradation, water contamination, and toxic waste if not managed responsibly. China's dominant position in rare earth extraction and processing adds further complexity. While the country accounted for 60% of rare earth supply, it has also been investing heavily in global supply chains, raising concerns about potential trade restrictions and supply disruptions. This has prompted efforts in regions such as the United States, Europe, and the Middle East to diversify sourcing, develop recycling technologies, and explore alternative materials. The Middle East, particularly Saudi Arabia, is emerging as a key player in diversifying rare earth supply. The country's investments align with its broader Vision 2030 goals to reduce dependency on fossil fuels. However, potential projects in arid regions will need to address significant environmental and resource challenges, such as water scarcity and high energy costs. 'As the energy transition accelerates, the importance of rare earth sustainability will only grow,' added Zachariadis. 'Stakeholders must address the dual imperatives of reducing environmental impact and securing long-term supply. Innovations in recycling, advanced extraction methods, and alternative materials will be vital in ensuring the energy transition is both equitable and environmentally sustainable.' The Deloitte report also emphasizes the role of policymakers in creating clear frameworks to encourage investment in rare earth supply chains. By defining regulatory goals and standards, governments can help foster industry trust and innovation to accelerate cleaner, more efficient technologies. Looking ahead, the study identifies opportunities for industries to lead the charge in reducing dependency on rare earths. Automakers, for instance, are developing alternative EV technologies that require fewer minerals or rely on substitutes. Tesla and other companies are making advancements in externally excited synchronous motors that avoid the use of rare earth magnets, offering potential paths to mitigate supply risks. Rare Earth Minerals and Their Role in the Energy Transition paints a picture of both opportunity and urgency, outlining the strategic actions required to unlock the full potential of rare earths while safeguarding the environment. About Deloitte & Touche (M.E.) LLP: Deloitte & Touche (M.E.) LLP ('DME') is the affiliate for the territories of the Middle East and Cyprus of Deloitte NSE LLP ('NSE'), a UK limited liability partnership and member firms of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'). DME is a leading professional services organization established in the Middle East region with uninterrupted presence since 1926. DME's presence in the Middle East region is established through its affiliated independent legal entities, which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME's affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate. DME provides services throughout 23 offices in 15 countries with more than 7,000 partners, directors and staff. About Deloitte: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ('DTTL'), its global network of member firms, and their related entities (collectively, the 'Deloitte organization'). DTTL (also referred to as 'Deloitte Global') and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm sand related entity is liable only for its own acts and omissions, and not those of each other. DTTL, NSE and DME do not provide services to clients. Deloitte provides Audit & Assurance, Tax & Legal and Consulting and related services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories.
