Clean cooking-focused Africa fund reaches second, third close
TLDR
- Spark+ Africa Fund closes second and third rounds, boosting clean cooking in sub-Saharan Africa with $64 million AUM.
- European Commission collaborates with IFU in second closing, while US DFC joins in third closing to support fund's impact.
- Investment from key development finance institutions enhances fund's support for clean cooking initiatives in Africa.
Spark+ has completed the second and third closings of the Spark+ Africa Fund, an impact debt fund designed to boost clean cooking in sub-Saharan Africa. The latest close resulted in current Assets Under Management (AUM) of $64 million.
During the fund's second closing in July 2022, the European Commission participated by investing in the catalytic tranche through a collaboration with IFU, the development finance institution of Denmark, which also acted as the first closing investor.
In the subsequent third closing in September 2023, the US International Development Finance Corporation (DFC), the development finance institution of the United States, contributed to the senior debt tranche.
Key Takeaways
Traditional fuels like wood and charcoal present considerable environmental challenges, including significant contributions to carbon emissions and deforestation. Compared to LPG (liquefied petroleum gas), charcoal and wood have carbon footprints that are 50% and 74% larger, respectively. Moreover, up to 30% of global deforestation is attributed to charcoal production alone. Embracing clean cooking solutions is crucial for addressing these issues, and tackling some of the most significant sources of emissions, pollution, and deforestation in the developing world. Transitioning to clean cooking solutions, such as LPG, can have a transformative impact on both household well-being and broader societal welfare. Beyond reducing health risks associated with indoor air pollution, clean cooking solutions also offer the added benefit of saving valuable time for households each week.
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