The Africa Go Green Fund (AGG), a fund managed by Cygnum Capital Asset Management, which invests in projects in Sub-Saharan Africa that reduce greenhouse gas emissions, announces strategic financing of $10 million to BURN Manufacturing (BURN), the world’s leading clean cookstove manufacturer, distributor, and carbon-offset project developer, to distribute clean cookstoves to households in Mozambique, Nigeria, and the Democratic Republic of Congo.
The financing is for over 315,000 clean cookstoves which will be distributed in the three countries, enhancing their livelihoods, promoting health benefits, and contributing to the reduction of deforestation. This initiative targets a substantial reduction in CO2 emissions, aiming to reduce emissions by approximately 6.9 million tons of CO2 over the lifespan of the project.
BURN stoves have been independently verified by reputable institutions such as the University of Pennsylvania, and the University of Chicago, as well as through a comprehensive impact assessment survey conducted by Yunus Social Business. The stoves have consistently been proven to provide substantial health, financial, and climate action benefits. The company has made and distributed over 4.1 million clean cookstoves, transforming the lives of over 22.5 million people and avoiding 17 million tons of CO2 from entering the atmosphere.
Peter Scott, BURN CEO said: “We are excited about our collaboration with the Africa Go Green Fund, marking a significant step forward in our mission to bring clean and sustainable cooking solutions to over 300,000 households in Mozambique, Nigeria, and the Democratic Republic of Congo. This strategic partnership will empower communities to embrace clean cookstoves, reducing harmful smoke emissions and contributing to the critical cause of forest conservation. Together, we are dedicated to forging a path toward a more sustainable future.”
Laurene Aigrain, the Executive Director AGG commented: “We are very fortunate to have teamed up with investors that back up words with action. Africa Go Green was created with the objective of pushing boundaries. This transaction will hopefully pave the way for more capital to fund projects with such clear environmental and social benefits.”
BURN leverages carbon financing to subsidize the end-user cost of cookstoves by over 90%– increasing access and affordability to low-income households. Carbon finance allows BURN to distribute a $50 stove for as little as a $3-5 stove, which saves households over an estimated $100 a year in fuel costs and enables the company to accelerate its manufacturing and deployment of improved cookstoves to nine countries across Africa.
With the Africa Go Green Fund (AGG) financing, BURN will be able to significantly expand access to its stoves throughout Sub-Saharan Africa, where nearly 950 million people still rely on open fires or inefficient cookstoves.