EAST AFRICA CLEAN COOKING EXPANSION

Promoter – Financial Intermediary

BURN MANUFACTURING MAURITIUS LTD

Location

• Regional - Africa

Description

The project will finance the expansion of clean cooking activity of the company Burn Manufacturing in Kenya, Tanzania and potentially other African countries.

Objectives

This operation provides access to clean cooking for households and micro-entrepreneurs by co-financing the design, production, distribution, and payment plans of IoT tech-enabled electric induction cooking systems. The operation will generate high socio-economic impact as it results in a significant improvement of indoor air quality for final beneficiaries, it reduces the time required for cooking and fuel collection, it will result in cost savings due to the much higher efficiency of electric cooking, and it will generate strong environmental and climate benefits, as it supports a transition away from polluting and unsustainably harvested biomass towards modern clean cooking.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

USD 15 million (EUR 14 million)

Total cost (Approximate amount)

USD 30 million (EUR 27 million)

Environmental aspects

Each electric cooking system is expected to contribute CO2 emission reductions in the order of 2-3.5 tons per year (depending on the local cooking-fuel baseline and CO2 intensity of electricity used). The operation is therefore contributing fully to the Bank's Climate Action objective. It is aligned with the Bank's Energy Lending Policy, which includes in its eligibilities for Bank financing "clean cooking solutions for households outside the European Union".

Procurement

The promoter is a fully private entity, leasing electric cookstoves to its clients, operating in a competitive market and therefore subject to private procurement. The Promoter is required to comply with the EIB Guide to Procurement (GtP) by following private sector procurement practices, as set out in the GtP. Under these conditions, the procurement procedures followed by the Promoter should be competitive, fair and non-discriminatory, and satisfactory to the EIB.

Status

Approved - 22/12/2023