A $4 million initiative led by the African Development Bank’s Sustainable Energy Fund for Africa (SEFA) aims to replace charcoal use with electric cooking for over 115,000 low-income households in Kenya, Uganda, and Zambia. The funding will support the Burn Electric Cooking Expansion Program (BEEP), spearheaded by Nairobi-based clean energy firm BURN Manufacturing, to deploy induction cookstoves through an innovative financing model blending carbon credits and flexible payment plans.
The program targets grid-connected households reliant on charcoal, a major contributor to deforestation and indoor air pollution. BEEP will distribute IoT-enabled induction cookers, which reduce emissions and health risks, while lowering upfront costs through carbon-backed subsidies and pay-as-you-cook payment systems. A Special Purpose Vehicle (SPV) capitalized by a $5 million loan from Spark+ Africa Fund, SEFA’s $4 million grant, and $1 million equity from BURN will manage sales, distribution, and carbon credit revenue sharing.
“This marks the Bank’s first carbon finance transaction of its kind,” said Dr. Daniel Schroth, the African Development Bank’s Director for Renewable Energy and Energy Efficiency, emphasizing SEFA’s role in mitigating market risks. Carbon credits generated by the stoves will be owned by the SPV, with proceeds distributed to investors.
BURN CEO Peter Scott highlighted the program’s scalability, noting its integration of mobile technology and carbon financing to make electric cooking accessible. “We’re demonstrating that these solutions can be clean, affordable, and scalable across the continent,” he said.
Beyond environmental benefits, the initiative is expected to create jobs and strengthen local supply chains in the three countries. It aligns with SEFA’s Energy Efficiency goals and the Bank’s broader New Deal on Energy for Africa, which prioritizes universal access to sustainable energy.
SEFA, a multi-donor fund managed by the African Development Bank, focuses on unlocking private sector investments in renewable energy and efficiency projects. The BEEP initiative underscores its strategy to address Africa’s energy challenges through market-driven solutions while advancing global climate objectives.
