Why Now is the Time for Clean Cooking Investment in Africa

Why Now is the Time for Clean Cooking Investment in Africa

Over 900 million people in Africa depend on traditional biomass fuels – charcoal and firewood – to cook their meals, which leads to severe health problems and environmental damage (World Bank, 2022). Clean cooking projects are trying to reverse this trend.

This heavy reliance on wood fuel and charcoal results in approximately 490,000 premature deaths annually across the continent. Women and children suffer the worst health effects. African nations lose an estimated $37 billion yearly because of mounting health costs and reduced productivity from these traditional cooking methods.

As of WHO data from 2023, only 22.2% of Sub-Saharan Africa has access to clean cooking solutions versus the global average of 74.7% (World Health Organization 2023)

Modern cooking solutions can help Africa reach its sustainable development goals.

A switch to advanced cooking technologies brings multiple advantages. Improved cookstoves, electric cooking, biogas, pellets/briquettes and LPG alternatives reduce deforestation and carbon emissions. These solutions also improve public health, grow economic productivity and can build demand for infrastructure from the bottom-up.

This piece looks at Africa’s current cooking practices and the momentum building towards major investment in the sector. It discusses investment opportunities and practical ways to speed up the adoption of clean cooking solutions across the continent.

Current state of clean cooking practices

About 2.3 billion people globally cannot access clean cooking facilities and Sub-Saharan Africa – Malawi, Tanzania, Mozambique among others – makes up almost 40% of this figure.

Traditional Fuel Usage Statistics

Biomass remains the main cooking fuel throughout Africa. 85% of people in sub-Saharan regions do not have clean cooking options. This problem is heightened in rural areas where 90% of households cook with wood stoves. Each year, 3.2 million people die because they breathe polluted air from these cooking methods.

On the top left, charcoal and firewood are traditional biomass fuels for cooking; from the centre and right, modern cooking solutions categorised as Tier 4+ solutions include LPG, electric pressure cookers and induction cookers among others

Regional Access Disparities

Clean cooking access varies greatly between cities and villages. In Malawi, rural families mostly depend on wood – 90% use it as their main fuel. In urban households, this number is around 15% (SE4All, 2022).

Rural electrification programs are growing as countries seek to expand modern energy access to rural communities. One such program, the Tanzania Rural Electrification Expansion Program (TREEP) which was launched in March 2019 has invested $209 million into increasing the supply of renewable energy into rural areas.

Cultural Cooking Behaviours and Patterns

Alongside regional energy access disparities, African cooking traditions shape how people choose and use their cooking fuels. Many still cook on open fires and use clay pots because these methods are deeply aligned with the cuisine preferences and culture.

However, traditional cooking habits pose several problems:

  • Women and children face higher health risks and spend about five hours each day gathering fuel and cooking
  • Forests disappear at an alarming rate – yearly losses equal Ireland’s size, for example Malawi’s landmass to tree coverage has dropped from 35% to 15% in 20 years
  • Families struggle financially. Kenyan households alone spend around 68 bn shillings yearly on charcoal

Clean cooking faces more hurdles as LPG prices have jumped by over 24% recently. Electric grid access has reached 75% in some countries, but few people cook with electricity for many reasons – myths around safety, time taken for heating stodgy items such as beans and affordability. Studies from MECS and others have shown that electric cooking (eCooking) could save money for most meals.

Embracing electric cooking in Africa represents a pivotal shift towards sustainable energy consumption. By transitioning from traditional biomass fuels to electricity for cooking, there is an opportunity to not only enhance public health and environmental outcomes but also stimulate demand for renewable energy sources.

This increased demand can drive the expansion of clean energy infrastructure, fostering economic growth and ensuring a resilient energy future for the continent.

Aran Eales PhD, Electric Clean Cooking Expert at GIA and Research Associate at Strathclyde University

Policy framework development

African policy frameworks continue to evolve as they tackle the clean cooking challenge. The implementation and funding gaps remain substantial. Less than one-third of people without clean cooking access live in countries that have adequate policies and funding to reach universal access by 2030.

National Policy

Nigeria stands out with its complete policy development plan. The country targets 54% access to LPG use in households and institutions by 2030 with three ambitious goals:

  • LPG supply must reach 5 million tons annually by 2030
  • Biogas development should reach 3% of homes
  • A thriving fuel-efficient cookstove industry needs to capture 13% market share

Regional Cooperation

The West Africa Clean Cooking Alliance (WACCA) shows what successful regional teamwork can achieve, alongside the global Clean Cooking Alliance (CCA). They want to improve living conditions by increasing access to cleaner cooking devices and sustainable fuels. Initiatives include training for local stove manufacturers to have Tier 4+ – non-charcoal and firewood – solutions built on the ground. WACCA has reached important milestones. These include developing regional action plans and setting up National Clean Cooking Alliances in member states.

Implementation

The path to success needs an all-encompassing approach that focuses on three core areas:

  • Financial Support – more than half of households without clean cooking access cannot afford the upfront costs of a stove. Low-income households might spend between one-third to three-quarters of their monthly income just on a stove.
  • Policy and Capacity Building – each country must develop market entry strategies and set up enabling environments for markets. This includes support for SMEs, clear policy around safety and regulation and incentives from financial ministries.
  • International Collaboration – support continues to grow. The African Development Bank has pledged £1.57 billion over ten years. The European Union Commission adds another £314.25 million to clean cooking activities.

The implementation framework must balance affordability support while managing import risks and subsidies. Better targeted incentives and cross-subsidization between customers can help achieve sustainable adoption rates without compromising long-term economic viability.

Investment and funding landscape

Clean cooking investments in Africa are growing at record levels. Both public and private sectors have made substantial commitments. Current yearly investments of approximately £102.13 million make up just a small part of the £7.86 billion needed for universal access.

Public Sector

The African Development Bank leads the charge with a £1.57 billion pledge over ten years for clean cooking solutions in Africa. This money is estimated to help save around 600,000 lives each year. Women and children who suffer from indoor air pollution will benefit the most. The Bank’s yearly contribution of £157.13 million moves us closer to the £3.14 billion annual target needed for universal access by 2030.

Private Investment

The private sector has a key role to play to offering financing models and investment options. The Spark+ Africa Fund, a £50.28 million impact investment initiative, supports next-generation clean cooking solutions throughout sub-Saharan Africa. Key investment areas include:

  • Liquified petroleum gas (LPG) infrastructure
  • Biofuel development (bio-ethanol and wood pellets)
  • Electric appliance manufacturing
  • Efficient biomass stove production
  • Fuel distribution infrastructure development
  • Electricity generation and distribution infrastructure development

The transition to clean cooking has traditionally been hindered by affordability barriers that constrain households to cooking with polluting biomass fuels. The advent of new business models, such as pay-as-you-go and razor and blade, is completely changing the suite of options that are affordable and available, unlocking clean cooking fuels and technologies for new segments of the population.

Tash Perros PhD, Clean Cooking Expert at GIA and Senior Research Fellow at UCL

PAYGO (Pay-As-You-Cook) has altered the map of financing solutions. This model helps lower-income households buy clean cooking technologies through flexible payment plans that run from 6 to 36 months.

Railway and transport is key to delivering fuel solutions to power clean cooking, especially in the LPG sector

Furthermore, the clean cooking transition demands significant investment in supporting infrastructure. Transport networks for fuel distribution remain critically underdeveloped, with just 43% of Africa’s population having access to all-season roads (World Bank, 2019). Private investors are increasingly focusing on rail infrastructure projects that connect major ports to inland distribution centers. The African Rail Infrastructure Fund, launched in 2023, has already committed £314 million to specialized rail car development for LPG transport and the rehabilitation of key corridors in East Africa.

International Aid

International partnerships have sparked major funding initiatives. The African Guarantee Fund and Clean Cooking Alliance work together on groundbreaking financing approaches that focus on:

  • Financial innovation development
  • Access to responsible carbon finance
  • Investment promotion in clean cooking enterprises

The European Investment Bank has committed £11.78 million to help distribute electric induction cookers. This project will affect 6.5 million people and prevent 12 million tons of carbon emissions over five years.

Clean cooking implementation models

Clean cooking solutions need a complete approach that combines community participation, market mechanisms, and skill development. The West African Clean Cooking Alliance (WACCA) shows how combined implementation models can reach nearly 400 million people in sub-Saharan Africa.

Community-Based Approaches

Local cooking cultures and user needs drive community-centered implementation strategies. Studies show that hands-on trials before purchase and quality user manuals boost long-term adoption rates by a lot. UNDP’s renewable energy initiative in the Sahel region proves this success through user-focused design and local market growth.

Local stove manufacturing factories are new investment opportunities to grow national economic growth in Sub-Saharan Africa

Market-Driven Solutions

Carbon financing and innovative payment systems have made market-based implementation models successful. Carbon credit sales now represent approximately 25% of total revenues in the clean cooking sector.

Notable success stories include:

  • Companies like Toyola Energy Limited (Ghana) and Katène Kadji (Mali) successfully accessing carbon finance through Clean Development Mechanism
  • Implementation of pay-as-you-cook systems increasing affordability
  • Development of institutional stoves for schools, prisons, and restaurants

Building Market Integrity

After-sales support and continuous user participation play vital roles in implementation strategy. Research reveals that regular follow-up support, phone calls, and social cooking gatherings boost long-term adoption rates significantly – alongside supporting successful usage verification for carbon financing solutions.

Digital monitoring, reporting and verification of cookstove usage (dMRV) strengthens this approach by adding automating data and information flows from carbon projects. Investors in carbon projects can feel secure in the knowledge the cookstoves are not simply piling up on the side of the road, they are being used consistently for household benefit.

Over the past few months, we’ve seen prices for cookstove projects fall by a third, from around $6/ton to $4/ton. There’s a lot of excitement about new dMRV technologies and methodologies coming online, which should help to rebuild trust in the market, but it’ll take a few years for those projects to register and issue credits.

Anton Root, Co-Founder and Head of Research at AlliedOffsets

Time for Action

Clean cooking solutions are the life-blood of Africa’s environmentally responsible development. They tackle health, economic, and environmental challenges head-on. We have a long way to go, but we can build on this progress through policy frameworks and investment pledges to achieve universal access by 2030.

The numbers tell a compelling story about clean cooking’s potential. Today’s implementation models show promising results. Carbon credit sales make up 25% of sector revenues, while community-based approaches cut fuel use by 30-60%. The African Development Bank has pledged £1.57 billion ($2.2 billion USD). This commitment, along with innovative private sector funding models, builds a reliable foundation to expand clean cooking solutions throughout the continent.

Success stories prove large-scale adoption works. Nigeria’s complete policy framework aims for 54% LPG access by 2030. The West African Clean Cooking Alliance now reaches 400 million people. These achievements show how policy support, market mechanisms, and community involvement can work together effectively.

The sector needs steady support to close the £7.86 billion funding gap for universal access. Implementation models must respect cultural sensitivities and economic sustainability.

Clean cooking technology does more than protect the environment – it reshapes the scene for public health, economic growth, and sustainable infrastructure development in Africa.

References

  1. AfDB. (2024, May 15). African Development Bank commits $2 billion as it leads the way at landmark summit for access to clean cooking in Africa. African Development Bank Group.
  2. Clean Cooking Alliance. (2023, December). The Future of Africa’s Sustainable Cities: Why Clean Cooking Matters. Clean Cooking Alliance.
  3. Clean cooking in Africa is finally starting to get the spotlight it deserves – ECOS. (2024, May 30). ECOS – Environmental Coalition on Standards.
  4. DelAgua. (2024, July 5). The Negative Health Impacts of “Dirty Cooking” – DelAgua Water Testing. DelAgua Water Testing.
  5. ESMAP. (2023). UNLOCKING CLEAN COOKING PATHWAYS. In World Bank Group.
  6. Federal Ministry of Environment. (2024). National Clean Cooking Policy. Federal Ministry of Environment of Nigeria.
  7. Ferris, N. (2024, February 26). How clean cooking has “moved to the top of the energy agenda.” Energy Monitor.
  8. Forbes. (2024, May 14). World Leaders Pledge $2.2 Billion For Clean Cooking In Africa.
  9. IEA. (2024, May 14). Landmark summit mobilises $2.2 billion to make 2024 a turning point for clean cooking access in Africa – News – IEA. IEA.
  10. Loughborough University. (2023, September 18). More than 1.1 billion African people unlikely to have access to clean cooking fuels and technologies by 2050, new study predicts. Loughborough University.
  11. Malawi IEP Report – Clean Cooking. (2023, April 21). Sustainable Energy for All | SEforALL.
  12. Spark+ Africa Fund. (2024). Spark+ Africa Fund.
  13. Talari, M. (2023, May 2). Strengthening the Ecosystem for Clean Cooking Solutions – EEP Africa. EEP Africa.
  14. World Bank. (2022, July 11). Changing Lives and Livelihoods in Tanzania, One Electricity Connection at a Time. World Bank Group; World Bank Group.
  15. World Bank. (2024). How clean cooking solutions can help protect human capital in Sub-Saharan Africa. World Bank Blogs.
  16. World Bank Group. (2019). Measuring Rural Access: Update.

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