NAIROBI, Kenya, April 26 – The African Guarantee Fund (AGF) and the Clean Cooking Alliance (CCA) have unveiled a partnership that seeks to fund energy transition projects to clean cooking across the continent.The two organizations, according to a statement, will focus on markets in East, Southern, and West Africa, where they see a significant need and opportunity to expand investments in green projects through clean cooking.
“The partnership will enable carbon project developers to access pre-financing, thus helping to speed up both customers’ access to clean cooking,” says Feisal Hussain, Senior Director of Innovative Finance at the Clean Cooking Alliance (CCA).The CCA operates with the support of the United Nations Foundation to promote clean cooking technologies in lower and middle income countries.
Feisal Hussain says the CCA will use its network across the cooking and carbon markets in its partnership with the AGF in Africa.
“We aim to lower the entry barrier for smaller clean cooking companies, helping to build carbon markets that are accessible to many,” he said.
The International Energy Agency (IEA) estimates that 970 million Africans lack access to clean means of cooking.
The recent increases in the price of cooking gas have forced millions back into more polluting but cheaper alternatives.According to the United Nations Framework Convention on Climate Change (UNFCCC), if nothing is done to provide cleaner cooking alternatives, 1.67 billion Africans will rely on wood and charcoal for cooking by 2050.This is expected to have a serious impact on climate, on the conservation of African forests, and especially on health.
According to 2022 data from the World Health Organization (WHO), 3.2 million people already die prematurely every year from illnesses attributable to household air pollution.
“Our partnership with the Clean Cooking Alliance seeks to help stop this dangerous tide. We will be targeting financial institutions to enable them grow their clean energy portfolios by developing innovative financial solutions that promote clean cooking and use of clean fuels,” said AGF Group CEO, Jules Ngankam.
AGF’s Green Guarantee Facility and Technical Assistance, according to Jules Ngankam, will address capacity-building gaps and risks that surround lending to green SMEs across Africa. “It will also prepare these SMEs to become credit and investment-ready to allow them fully play their role of promoting sustainability and growing Africa’s green economy.”
