AGG and BURN sign $10m deal to fund clean cooking in Africa

Daba Finance/AGG and BURN sign $10m deal

STARTUP VENTURE CAPITALDecember 9, 2023 at 9:44 PM UTC

The Africa Go Green Fund (AGG), managed by Cygnum Capital, is providing strategic financing of $10 million to BURN Manufacturing, the world's leading clean cookstove manufacturer. The funds will be used to distribute clean cookstoves to households in Mozambique, Nigeria, and the Democratic Republic of Congo.

The financing is expected to result in the distribution of improved cooking solutions to between 50,000 and 150,000 customers in each of the mentioned countries. This initiative aims to enhance livelihoods, promote health benefits, and contribute to the reduction of deforestation.

Moreover, it targets a substantial reduction in CO2 emissions, to reduce emissions by approximately 6.9 million tons of CO2 over the lifespan of the project. The investment aligns with AGG's focus on supporting projects in Sub-Saharan Africa that contribute to reducing greenhouse gas emissions.

Key Takeaways

Traditional fuels like wood and charcoal not only pose environmental challenges but also significantly contribute to carbon emissions and deforestation. Comparatively, charcoal and wood have a carbon footprint that is 50% and 74% larger than that of LPG (liquefied petroleum gas), respectively. Additionally, as much as 30% of global deforestation is driven by charcoal production. Adopting clean cooking solutions helps mitigate these issues, addressing some of the most significant sources of emissions, pollution, and deforestation in the developing world. Transitioning to clean cooking solutions could have a profound impact on the well-being of households and society. Clean cooking solutions, such as LPG, not only reduce health risks but also free up valuable time each week.

Africa Go Green Fund

Cygnum Capital

BURN Manufacturing

Clean Cooking

Mozambique

Nigeria

DRC