Spark + Africa Fund
BIO has invested USD 3 M in equity in the Spark + Africa Fund, an impact investment fund aiming to develop and scale an inclusive and sustainable clean cooking industry.
Amount
€ 2,444,790.00
Type of investment
Debt
Development impacts
- Private sector consolidation/innovation
- Access to basic services & goods
- Fight against climate change
- Gender
Beneficiary locations
Investment field
Investment Companies & Funds
Activity
Spark+ Africa Fund is an impact investment fund aiming to develop and scale an inclusive and sustainable clean cooking industry. The Fund will invest in companies that manufacture and distribute clean and energy-efficient cooking solutions in base-of-the-pyramid markets in sub-Saharan Africa, such as biomass stoves, advanced biomass fuels, ethanol and biogas systems. Spark+ will also invest in distributors and consumer finance providers, such as off-grid solar companies and microfinance institutions that extend their services to clean cooking products.
Spark+ aims to directly address the critical investment gap in the clean cooking sector and achieve a range of societal benefits, including improved respiratory health, greater gender equality, reduced greenhouse gas emissions and deforestation, industrial and economic development, and poverty reduction
Development impacts
-
Private sector consolidation/innovation
The fund will invest in local companies with the objective to scale up the industry, working as a catalyst to prove the sectors’ sustainability.
Direct involvement of the Clean Cooking Alliance, an initiative of the UNF whose mandate is to create a viable clean cooking sector
-
Access to basic services & goods
The Fund will invest in companies that manufacture, distribute, or enable the delivery of clean and energy-efficient cooking solutions in bottom-of-the-pyramid markets.
-
Fight against climate change
Cleaner, more modern stoves and fuels have a recognized potential to reduce deforestation, mitigate climate change, lower indoor air pollution and reduce deaths from smoke-related illnesses
Reduction in forest degradation, deforestation and climate change in contexts where the use of wood/charcoal fuel in household cooking is predominant.
-
Gender
Eligible for consumption criteria
Commitment to recruit female representatives at board and IC level
E&S Impact
Spark+ will work with a consultant on upgrading its Environmental and Social Management System (ESMS), which will include an update of the E&S standards (including the IFC PS) and a review of the different steps and tools of the investment process. The fund also agreed not to invest in high-risk projects and to consult an E&S specialist in case of medium-high risk.
Current situation
The fund was built around its strong positive impact. Moreover, in order to manage the potential negative E&S risks generated by the activities of its investees, the fund set up an ESMS, describing how the investment process covers E&S risks by using the AfDB E&S standards.
Risk Category: B
Made possible through this investment
BURN Manufacturing
Kenya
BURN Manufacturing is a global leader in the design and manufacture of high-quality, life-improving cooking solutions for the mass market in sub-Saharan Africa.
View more of our investments in this region
Investment Companies & Funds
African Rivers Fund IV
10,000,000.00
Angola, Democratic Republic of Congo, Uganda, Zambia
05/12/2024
Equity
