Scaling access to clean cooking solutions in Zambia
Lusaka, Zambia, 24 February 2025 -- The Private Infrastructure Development Group (PIDG) and EDFI Management Company, through the Electrification Financing Initiative (ElectriFI), have invested a total of EUR 4 million to substantially scale the offering of Emerging Cooking Solutions (Supamoto) in Zambia. Supamoto’s clean cooking solution involves the use of biomass pellets, with Internet-of-Things (IoT) enabled, fuel-efficient stoves reducing greenhouse gas emissions and utilising local waste products. The investment, made through InfraCo, PIDG’s project development solution, is among the first that PIDG has made in Africa’s clean cooking sector.
"Over a decade ago, we recognised that waste biomass pellets, and micro-gasification stoves would play a crucial role in the energy transition. We were among the first to highlight pellets as the clean fuel with the greatest potential to compete with charcoal on both price and performance – key factors for widespread adoption. Initially a lone voice with much to prove, we have now demonstrated a perfect product-market fit, offering significant savings to end-users while maintaining strong profit margins on fuel. We're thrilled that this investment, coupled with our proprietary IoT platform, high-performing internet-connected stoves, and upcoming Article 6.2 carbon credit program in partnership with the Zambian government, will enable our rapid growth. The moment we've been working towards has finally arrived," says Mattias Ohlson, CEO of the Emerging Cooking Solutions Group.
Today’s investment will enable Supamoto to significantly increase pellet production at its facility in the city of Ndola in Zambia’s Copperbelt region. It will also allow the company to expand its logistics and distribution infrastructure to meet growing demand. The transaction will finance 14,800 new fuel-efficient cookstoves which, it is anticipated, will deliver cost and time savings for up to 74,000 people.
PIDG’s Chief Investment and Project Development Officer for InfraCo, Gilles Vaes, said, “Access to clean cooking is a key driver for improvements in human and planetary health, and the prevention of nature loss. We are proud to be working with colleagues at EDFI Management Company to support Supamoto’s ambitions in Zambia to further this goal. Access to clean cooking disproportionately benefits women, however, there are large data gaps on the topic for Zambia. By increasing our understanding of exactly how women benefit from this project, we will seek to plug some of those data gaps. By supporting Supamoto to grow its workforce four-fold over the next five years, our investment is also promoting sustainable economic growth here in Zambia.”
Rodrigo Madrazo, CEO of EDFI Management Company said, "At EDFI Management Company, we are committed to supporting innovative solutions that address both energy access and climate change. Our investment in Supamoto aligns perfectly with this mission. By scaling up clean cooking solutions in Zambia, we are contributing to significant reductions in greenhouse gas emissions and improving the lives of thousands of families. This project demonstrates how smart, sustainable technologies can create positive impacts at both the household and global levels. We're excited to partner with PIDG and Supamoto in this endeavour, which we believe will serve as a model for clean cooking initiatives across Africa."
The Supamoto investment has been supported by a EUR 2.5m commitment from PIDG InfraCo (Africa), supported by the governments of United Kingdom, the Netherlands and Switzerland.
The EDFI Management Company investment in Supamoto falls under its dedicated window ElectriFI Zambia, a strategy funded by the 11th European Development Fund for Zambia and designed specifically for the country, in close collaboration with the government, local authorities and the EU delegation to Zambia and the Common Market for Eastern and Southern Africa (COMESA).
The transaction has also been supported by GET.invest, a European programme that mobilises investment in renewable energy in developing countries.
The Modern Cooking Facility for Africa (MCFA) has provided Supamoto with a EUR 0.6m fixed grant, and a Results Based Financing grant of EUR 1.4m. This funding enables Supamoto to supply stoves to customers with minimal upfront cost. As a subscription-based utility using IoT enabled stoves, Supamoto can monitor actual fuel use, using that data to sell high-quality carbon credits on certified carbon markets under Article 6.2.[i] It is anticipated that, as carbon markets grow, the sale of carbon credits will support long term efforts to keep stoves affordable for customers on low incomes.
Once operating at scale, it is anticipated that Supamoto will attract further private sector investment to grow its offering across sub-Saharan Africa.
ENDS
Notes to Editor
Globally, it is estimated that 2.4 billion people do not have access to clean cooking, translating to more than US$2.4 trillion in damage to the climate.[ii]
Where fuelwood and charcoal are burnt from non-renewable sources, global greenhouse gases increase, which contribute to climate change.[iii]
In Zambia, over half of urban households rely on charcoal for their energy use.[iv] As demand for fuelwood has grown, Zambia has experienced some of the highest levels of deforestation seen on the continent, losing between 180,000 and 250,000 hectares of forest per year.[v]
Scarcities due to overexploitation, coupled with stricter government regulation, are increasing the cost of firewood and charcoal and customers are looking for cleaner, more affordable alternatives.
Video about ECS: https://www.youtube.com/watch?v=8LU8_Wfc7hQ
Emerging Cooking Solutions (Supamoto): Emerging Cooking Solutions (ECS) is a group of companies, headquartered in Sweden, with operations in Zambia and Malawi. Its mission is to provide clean, affordable, and high-performing cooking solutions to households in Sub-Saharan Africa, helping them transition away from charcoal. Operating under the brand name SupaMoto, ECS manufactures and distributes biomass pellets made from sustainable forestry waste, along with high-efficiency, smart cookstoves manufactured in South Africa. The company's innovative approach combines cutting-edge technology with a sustainable business model, offering significant cost savings to end-users while reducing deforestation and improving indoor air quality. ECS is the first cooking company in Zambia to be awarded a partnership with the Government of Zambia to develop a carbon credit program under Article 6.2 of the Paris Agreement, using a digital MRV platform developed in collaboration with ixo (https://ixo.world/). www.emerging.se
The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity, and urgency. PIDG offers Technical Assistance for upstream, early-stage activities and concessional capital; its project development offering – which includes InfraCo – invests in early-stage project development and project and corporate equity. PIDG credit solutions include EAAIF (the Emerging Africa and Asia Infrastructure Fund), one of the first and more successful blended debt funds in low-income markets; GuarantCo, its guarantee arm that provides credit enhancement and local currency solutions to de-risk projects; and a growing portfolio of local credit enhancement facilities, which unlocks domestic institutional capital for infrastructure financing. Since 2002, PIDG has supported 233 infrastructure projects to financial close, which provided an estimated 230 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Global Affairs Canada, and Germany. www.pidg.org
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit www.edfimc.eu. The Electrification Financing Initiative (ElectriFI), managed by EDFI Management Company, is an impact-first investment facility, funded by the European Union. ElectriFI is investing in early-stage private companies and projects that increase or improve access to and supply of sustainable energy in developing countries. For more information, visit www.electrifi.eu.
The Modern Cooking Facility for Africa (MCFA) is a multi-donor facility established and managed by Nefco – the Nordic Green Bank – with the aim to support the development of new markets for the clean cooking sector and accelerate access to high-technology, modern and affordable cooking equipment for consumers in Sub-Saharan Africa, combining results-based financing with catalytic grant financing to companies active in the clean cooking market to grow and scale up their businesses in the programme countries. The overall aim of the MCFA programme is to provide access to clean cooking solutions for approximately 3 million Africans. The current EUR 45 million MCFA programme was announced in November 2021 and is funded by Sweden and the European Union. www.moderncooking.africa
GET.invest is a European programme which supports investments in renewable energy. The programme targets private sector business and project developers, financiers and regulators to build sustainable energy markets in partner countries. Services include finance access advisory for projects and companies, a funding database, mobilisation of domestic financiers and matchmaking events. Since 2022, GET.invest powers the Team Europe One Stop Shop for Green Energy Investments, an access point for information about and facilitated access to European support and financing instruments for energy projects and companies in Africa. The programme is co-funded by the European Union, Germany, Norway, the Netherlands, Sweden and Austria, and works closely with initiatives and business associations in the energy sector. Find out more at www.get-invest.eu