The Importance of

Clean and Modern Energy

for Cooking in Sub-Saharan Africa

Spark+ Africa Fund’s

 

Nearly a third of the world's population, some 2.3 billion people, still relies on unhealthy and polluting cooking methods.

 

The World Health Organization estimates that about 2.4 billion people worldwide, a third of the global population, cook using open fires or inefficient stoves fuelled by kerosene, biomass, and coal which generate harmful household air pollution.

 

Spark+ Africa Fund is an impact investment fund financing companies that offer next-generation, distributed cooking energy solutions to the mass market in sub-Saharan Africa.

 

Overview of Spark+ Africa Fund’s Mission and Purpose

 

Spark+ Africa Fund is a $70 million impact investment fund financing companies that offer next-generation, distributed cooking energy solutions to the mass market in sub-Saharan Africa. It is a true « triple bottom line » impact fund, financing profitable and scalable companies tapping into a massive total addressable market for cooking energy solutions and enabling millions of African families to stay safe and healthy and save time and money.

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Impact of Traditional Cooking Methods:


In sub-Saharan Africa, 900 million people cook with firewood, charcoal, and kerosene. The negative impacts include deforestation, greenhouse gas emissions, health effects from indoor air pollution, economic impacts, and gender inequality.

 

  • Deforestation: an estimated 52% loss of forests in Africa is due to firewood and charcoal production.
  • Greenhouse gas emissions: 20-45% of Africa’s GHG emissions are due to traditional cooking methods.
  • Health impacts from indoor air pollution: 600,000 people die prematurely each year in sub-Saharan Africa from pneumonia, ischemic heart disease, chronic obstructive pulmonary disease, stroke, and lung cancer; this is more premature deaths than malaria, HIV, and tuberculosis combined.
  • Economic impacts: households continue to rely on increasingly scarce, expensive, unhealthy, and inconvenient fuels which in some cases account for up to 40% of their total expenditures.
  • Gender inequality: women are responsible for procuring firewood, which can take up to 6 hours per day in some areas.
  • Deforestation: an estimated 52% loss of forests in Africa is due to firewood and charcoal production.
  • Greenhouse gas emissions: 20-45% of Africa’s GHG emissions are due to traditional cooking methods.
  • Health impacts from indoor air pollution: 600,000 people die prematurely each year in sub-Saharan Africa from pneumonia, ischemic heart disease, chronic obstructive pulmonary disease, stroke, and lung cancer; this is more premature deaths than malaria, HIV, and tuberculosis combined.

 

« Changing the way families cook their food each day will slow climate change, drive gender equality, reduce poverty, and provide enormous health benefits. » - Wanjira Mathai (2021)

Spark+ Africa Fund’s Approach: One core aim of Spark+ is to promote and support the growth of the clean cooking value chain in Sub-Saharan Africa. Therefore, the creation of industrial and economic development is essential. To accomplish this, the fund provides debt and mezzanine capital to leading cooking companies engaged in the value chains of LPG, electric appliances, biofuels, and other technologies. The long-term goal of Spark+ is to enable pioneering companies to get to scale and profitability, such that their business models are replicated across sub-Saharan Africa and throughout the developing world.

INVEST THROUGHOUT THE VALUE CHAIN

INVEST THROUGHOUT THE VALUE CHAIN

We invest in designers, manufacturers, distributors, and retailers of cooking solutions in Africa. We also invest in microfinance institutions, solar home system / connected asset finance companies, mini-grid operators, multi-product last-mile distributors, SaaS and IoT companies, and others that play a role in scaling up the adoption of clean and modern cooking energy solutions.

INVEST WITH TOP MANAGEMENT TEAMS

INVEST WITH TOP MANAGEMENT TEAMS

We back management teams with the market knowledge, domain expertise, business acumen, execution skills, and personal drive to make their companies successful. Most critically, we back teams with the highest degree of business ethics and personal integrity, and have a robust environmental, social and governance (ESG) management system from due diligence to portfolio management and ultimately monetization.

INVEST AT AN EARLY STAGE OF GROWTH

INVEST AT AN EARLY STAGE OF GROWTH

Our investment tickets range from $500,000 to $7 million in companies that have commercialized their product or service and have traction in their market(s). By investing at an early stage of growth, but not in pre-revenue start-ups, we avoid significant technology risk on solutions that have not yet demonstrated product/market fit.

OFFER MORE THAN JUST MONEY

OFFER MORE THAN JUST MONEY

We are the first investment fund specialized in clean and modern cooking energy globally, having been developed by market experts and investment professionals at the Clean Cooking Alliance, the sector’s leading development organization, and Enabling Qapital, a leading impact investment advisory firm. We bring deep market and technology expertise, a long and successful investment track record, an extensive network, and non-financial value to our portfolio companies to complement our financing.

LEVERAGE A FLEXIBLE TOOLKIT

LEVERAGE A FLEXIBLE TOOLKIT

We can invest either debt or mezzanine capital, and in select instances, we may consider an equity investment. We have also designed an innovative tripartite distributor financing instrument that allows us to partner with product companies to extend credit to their often smaller and less bankable last-mile distribution partners, in turn filling a key financing gap in the supply chain.

Our Environmental and Social (E&S) Policy can be viewed here.

INVESTMENT STRATEGY

INVESTMENT STRATEGY

The fund deploys debt and equity/quasi-equity to companies throughout the clean cooking sector. It maintains a flexible investment strategy to grow companies, including working capital finance, inventory/receivables finance, and growth capital. The fund invests in existing players and attracts new entrants into the supply chain, such as biofuel/LPG fuel and stove distributors, prefabricated biogas system companies, producers of pellets, ethanol, and char-briquettes, industrial manufacturers of ethanol, LPG, electric, and biomass stoves, and other related intermediaries.

Portfolio Companies

Spark+ Africa Fund invests in companies across multiple business models, technologies/fuel types, and markets in sub-Saharan Africa.

For complaints or grievances related to Spark+ portfolio companies, please see our grievance policy.

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Portfolio Company Case Study: BURN Manufacturing

The fund’s first investment was in BURN Manufacturing – a pioneering company and recipient of the Ashden Award, Swiss Energy and Climate Summit Award, Bloomberg New Energy Finance Award, and Global LEAP Award. The company has to date sold more than 4.1 million super fuel-efficient cooking appliances in East Africa, resulting in 17 million tons of CO2 avoided, nearly USD 700 million in customer savings on fuel, and 9.6 million tons of wood saved.

 

BURN’s vertically integrated solar-powered manufacturing facility in Kenya, the first and only of its kind, currently produces a stove every 13 seconds and employs 2,500 people, 50% of whom are women. The company is now expanding to other African countries, launching new products, and continuing to increase its production capacity. Through our investment, we are supporting the emergence local manufacturing of high-quality, high-impact products, which we see as an essential step to ensure sustainable development.

Investors and Partners

The Spark+ Africa Fund is a joint venture between the fund’s exclusive advisor Enabling Qapital (EQ), and the Netherlands-based foundation Stichting Modern Cooking (SMC) who also acts as the fund’s Technical Assistance Partner. We partnered with the Clean Cooking Alliance, an initiative of the United Nations Foundation, to develop the fund.

Spark+ Africa Fund is managed by an investment team with a proven track record and extensive knowledge and relationships in the energy sector in Africa and other developing and developed markets.



Xavier Pierluca
Xavier PierlucaCo-Investment Director
Peter George
Peter GeorgeCo-Investment Director
Brian McConnell
Brian McConnellVice President Africa
Kilonzo Mbwele
Kilonzo MbweleRegional Manager Africa & Middle East
Gerald Njugi
Gerald NjugiInvestment Officer
Kanwal Rathi, CFA
Kanwal Rathi, CFAInvestment Officer
 Mohammad Hayat, CFA
Mohammad Hayat, CFAInvestment Analyst
Olivia Fechner
Olivia FechnerDeputy Regional Manager Africa & Middle East
Constatine Mungai
Constatine MungaiSenior Investment Analyst
Shrikant Avi
Shrikant AviClean Cooking Alliance Venture Lead and TA Liason to Spark+
Julie Harris
Julie HarrisSenior Advisor and TA Partner

The Investment Committee includes notable individuals from organizations like Woodman Asset Management, Shell International, Enabling Qapital, and more.



Oliver Skovgaard
Oliver SkovgaardPortfolio Manager Woodman Asset Management
Esther Gerratt
Esther GerrattPrincipal, New Energies Shell International
Chuck Olson
Chuck OlsonManaging Partner Enabling Qapital
Xavier Pierluca
Xavier PierlucaManaging Partner Enabling Qapital
Co-Investment Director Spark+ Africa Fund
Peter George
Peter GeorgeChairman Stichting Modern Cooking
Co-Investment Director Spark+ Africa Fund



Aimao Poean
Aimao PoeanConducting Officer - Valuation, Finance
The Riverside Company
Karen Brade
Karen BradeSenior Advisor
Independent
Roger Müller
Roger MüllerManaging Partner
Enabling Qapital
Xavier Pierluca
Xavier PierlucaManaging Partner Enabling Qapital
Co-Investment Director Spark+ Africa Fund
Peter George
Peter GeorgeChairman Stichting Modern Cooking
Co-Investment Director Spark+ Africa Fund

Fund Partners

 

Spark+ Africa Fund was developed through a partnership between leaders in the African domestic energy sector, impact investing, and asset management, including Enabling Qapital, Stichting Modern Cooking, and others.

Sponsor and Exclusive Investment Advisor; Shareholder in GP

Enabling Qapital Ltd. (EQ) is a leading impact investment advisory company with strong ties in the impact investment sector and deep expertise in finance, with its founding partners unique skillsets and 100+ year proven track record. In addition to Spark+, EQ is the exclusive advisor to the more than $500 million Enabling Microfinance Fund. EQ has a global footprint and team consisting of more than 50, including investment professionals across Europe, Africa, Asia, and Latin America who originate, execute, and monitor investments.

Sponsor and TA Partner; Shareholder in GP.

Stichting Modern Cooking (SMC) is a Netherlands-based foundation focused on access to clean and modern cooking solutions in developing countries through the provision of technical assistance and the development of investment initiatives such as Spark+ Africa Fund. SMC was created with support from the Clean Cooking Alliance and is governed by a Board of Directors which includes recognized experts in the energy sector, international development, climate change/climate finance, and impact investing.

Regulated Alternative Investment Fund Manager (AIFM). Founded in 2010, Woodman is an independent investment boutique serving wealthy individuals & family offices. Our investment capabilities are built on the expertise of our in-house investment professionals in Zug and London, and a hand-picked network of partners, in which Woodman holds strategic stakes. Woodman is authorised and regulated by FINMA (Swiss Financial Market Supervisory Authority).

Fund Promoter and TA Partner: Launched in 2010, the Clean Cooking Alliance (CCA), an initiative of the United Nations Foundation, is a leading clean cooking-focused multinational development organization. CCA undertakes a range of programs designed to accelerate access, including a global industry development program, the Cooking Industry Catalyst, which aims to demonstrate the viability of business models that deliver high-impact clean cooking solutions. CCA originally conceived, and supported the development, of Spark+ Africa Fund, and delivers advisory and grant support to the Fund’s pipeline and portfolio companies through its Venture Catalyst program.

Spark+ Africa Fund’s Investment Criteria

 

Investment Criteria: From microfinance institutions in rural Benin, to stove manufacturing companies in Zambia, to vertically-integrated fuel utilities in Kenya, we offer a range of financing solutions to companies throughout the supply chains of numerous clean and modern cooking fuels and appliances.

The common thread within our portfolio is that companies play a role in scaling up the use of alternatives to dirty, unhealthy, and unsustainable cooking practices in Africa.

 

We invite companies that meet the following criteria to contact us, including those that are:

  • Engaging in cooking solutions directly e.g. as a product designer, manufacturer, distributor, retailer, consumer finance provider, technology provider, etc.

  • Engaging with potential consumers of cooking solutions e.g. as an off-grid solar utility, FMCG distributor or retailer, microfinance institution, mini-grid operator, etc.

  • Operating in one or more countries in Sub-Saharan Africa.

  • Post-revenue with demonstrated proof-of-concept.

 

Companies in which we may invest include:​

  • Industrial-scale manufacturers of stoves and other appliances (e.g. cylinders, meters, etc.) related to ethanol, LPG, or biomass cooking fuels, as well as electric cooking appliances

  • Companies that commercialize pre-fabricated biogas solutions

  • Integrated utility companies: pay-as-you-go LPG, tech-enabled ethanol distribution, gasification stoves with pellet fuel, etc.

  • Producers of biomass fuels such as pellets, briquettes, and ethanol

  • Financing and distribution intermediaries such as LPG distributors, multi-product last-mile distributors, off-grid solar players and other connected asset finance companies, mini-grid operators, and microfinance institutions

 

Spark+ Africa Fund is dedicated to making clean and modern cooking energy accessible to millions in sub-Saharan Africa. Explore our portfolio and join us in our mission

Enabling Qapital

Enabling Qapital AG

Mühlebachstrasse 164

8008 Zurich

Switzerland

Enabling Qapital AG

Branch Geneva

Place du Grand-Mézel 1,

1204 Geneva

Switzerland

Enabling Qapital Kenya Ltd

Merchant Square Block B

2nd Floor, Riverside Drive

Nairobi

Kenya

Enabling Microfinance AG

Industriering 20,

9491 Ruggell

Liechtenstein

 

Enabling Qapital Luxembourg S.A.

16, rue Robert Stümper,

2557 Luxembourg

Luxembourg

 

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