AFRICA GO GREEN FUND (AGG) and BURN sign a $10 million project finance agreement to fund the distribution of clean cookstoves to households in Mozambique, Nigeria, and DRC

Nairobi, 29th November 2023…The Africa Go Green Fund (AGG), a fund managed by Cygnum Capital Asset Management, which invests in projects in Sub-Saharan Africa that reduce greenhouse gas emissions, announces strategic financing of $10 million to BURN Manufacturing (BURN), the world’s leading clean cookstove manufacturer, distributor, and carbon-offset project developer, to distribute clean cookstoves to households in Mozambique, Nigeria, and the Democratic Republic of Congo. 

The financing is for over 315,000 clean cookstoves which will be distributed in the three countries, enhancing their livelihoods, promoting health benefits, and contributing to the reduction of deforestation. This initiative targets a substantial reduction in CO2 emissions, aiming to reduce emissions by approximately 6.9 million tons of CO2 over the lifespan of the project.  

BURN stoves have been independently verified by reputable institutions such as the University of Pennsylvania, and the University of Chicago, as well as through a comprehensive impact assessment survey conducted by Yunus Social Business. The stoves have consistently been proven to provide substantial health, financial, and climate action benefits.   The company has made and distributed over 4.1 million clean cookstoves, transforming the lives of over 22.5 million people and avoiding 17 million tons of CO2 from entering the atmosphere.

Peter Scott, BURN CEO said: "We are excited about our collaboration with the Africa Go Green Fund, marking a significant step forward in our mission to bring clean and sustainable cooking solutions to over 300,000 households in Mozambique, Nigeria, and the Democratic Republic of Congo. This strategic partnership will empower communities to embrace clean cookstoves, reducing harmful smoke emissions and contributing to the critical cause of forest conservation. Together, we are dedicated to forging a path toward a more sustainable future."

Laurene Aigrain, the Executive Director AGG commented: “We are very fortunate to have teamed up with investors that back up words with action. Africa Go Green was created with the objective of pushing boundaries. This transaction will hopefully pave the way for more capital to fund projects with such clear environmental and social benefits." 

BURN leverages carbon financing to subsidize the end-user cost of cookstoves by over 90%– increasing access and affordability to low-income households. Carbon finance allows BURN to distribute a $50 stove for as little as a $3-5 stove, which saves households over an estimated $100 a year in fuel costs and enables the company to accelerate its manufacturing and deployment of improved cookstoves to nine countries across Africa. 

With the Africa Go Green Fund (AGG) financing, BURN will be able to significantly expand access to its stoves throughout Sub-Saharan Africa, where nearly 950 million people still rely on open fires or inefficient cookstoves.  

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ABOUT BURN   

In 2011, BURN was founded with a mission to save lives and forests by revolutionizing the clean cookstove sector. While traditional, inefficient cookstoves bankrupt families, damage their health and destroy forests, BURN’s best-in-class stoves save families money on fuel, limit indoor air pollution and protect forests. BURN is now Africa’s leading clean cooking company and one of the only carbon-offset project developers to cover the full carbon value chain, from project design and in-house monitoring to credit issuance. Headquartered in Kenya and with direct operations in 8 African countries, BURN employs 2,500 people across Africa. The company has manufactured and distributed over 4 million clean cookstoves, transforming the lives of over 22 million people and avoiding 17 million tons of CO2 from entering the atmosphere. Learn more at burnstoves.com.

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 on capacity as the implementing entity for SEFA and the Clean Technology Fund (“CTF”)), the International Finance Corporation (“IFC”), Nordic Development Fund (“NDF”), and Calvert Impact Capital. This current fund committed capital is at USD 150 million.

About Cygnum Capital (Formerly Lion’s Head Global Partners)

Cygnum Capital Group is an investment bank and asset manager operating across frontier and emerging markets. Founded in 2008, Cygnum Capital is a global provider of tailored and innovative financial solutions to meet its clients’ diverse needs.

Cygnum Capital uses long-term relationships, networks and local market understanding to deliver a best-in-class service. With offices in London, Nairobi, Lagos, Dubai, and Amsterdam, Cygnum Capital’s dynamic team of 70 finance professionals provide deep sectoral expertise, a broad product offering, an asset management platform and the ability to leverage synergies between our corporate finance, asset management and advisory activities. 

Cygnum Capital Asset Management manages five pioneering funds: four debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (“OGEF”) which supports companies in off grid energy such as SHS and small- medium mini-grids, (iii) Facility for Energy Inclusion (“FEI”) which support companies that provide a range of renewable energy solutions such as medium - large mini- grids, C&I and IPP with a maximum capacity of 25 MW, (iv) AfricaGoGreen (“AGG”) Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency; and a VC private equity fund (v) E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & Applications, low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 750 million of assets under management with investments in more than 34 African countries.