MCFA’s Partnership with ENGIE Energy Access Mozambique to Propel Sustainable Cooking Solutions in Mozambique

MCFA’s Partnership with ENGIE Energy Access Mozambique to Propel Sustainable Cooking Solutions in Mozambique

(IN BRIEF) The Modern Cooking Facility for Africa (MCFA) has joined forces with ENGIE Energy Access Mozambique to advance clean cooking solutions in Mozambique, backed by EUR 1.3 million in funding. Through ENGIE’s subsidiary in Mozambique, innovative biodigester technology will be introduced, enabling farmers to convert agricultural waste into biogas and fertilizers via a PAYGo model. The initiative aims to provide 2,000 clean cooking services, benefitting around 10,000 individuals by 2028, primarily targeting rural areas. This collaboration signifies a significant step toward sustainable development, enhancing health, mitigating environmental impacts, and stimulating economic growth in Mozambique.

(PRESS RELEASE) HELSINKI, 6-Jun-2024 — /EuropaWire/ — In a significant move toward enhancing access to clean cooking solutions in Mozambique, the Modern Cooking Facility for Africa (MCFA) has forged a strategic partnership with ENGIE Energy Access Mozambique, backed by EUR 1.3 million in funding. The collaboration aims to expand the reach of innovative biodigester technology across rural areas of the country.

ENGIE Energy Access Mozambique, a subsidiary of ENGIE Energy Access, renowned for its off-grid solar home systems and PAYGo solutions branded as ‘MySol,’ will be the implementing partner for this endeavor. The infusion of EUR 1.3 million in results-based financing from MCFA is expected to catalyze additional co-financing, effectively doubling the total investment over the project’s lifecycle.

The initiative will see ENGIE Energy Access Mozambique offering biodigesters to its customers, allowing farmers to convert agricultural waste into biogas and fertilizers through a PAYGo business model. Leveraging the results-based financing provided by MCFA, the company plans to introduce this new product line in Mozambique. The focus will be on promoting and distributing biogas stoves, facilitating clean cooking primarily in three southern provinces where a significant portion of the company’s solar home system customers reside. The objective is to deliver 2,000 clean cooking services, including stoves and biodigesters, benefiting approximately 10,000 individuals in Mozambique by 2028.

“This initiative signifies a monumental stride towards sustainable development in Mozambique. By equipping rural communities with cutting-edge clean cooking solutions, we are not only bolstering health and mitigating environmental impacts but also fostering economic growth and resilience,” expressed Alexandra Links, Managing Director at ENGIE Energy Access Mozambique.

The company has forged a consortium with Sistema.bio, a leading manufacturer of high-quality biodigesters, to bring this vision to fruition. The biodigester kit comprises a hybrid reactor, a stove, and all necessary accessories for farmers to swiftly utilize biogas within weeks of installation. The by-product of the digester, biofertilizer, holds promise as a substitute for chemical alternatives, further supporting agricultural productivity.

“ENGIE Energy Access has demonstrated success in the off-grid solar sector in Mozambique. We see considerable potential for ENGIE to diversify its product portfolio by integrating these advanced clean cooking solutions in collaboration with Sistema.bio,” remarked Kari Hämekoski, Senior Programme Manager at Nefco.

MCFA, dedicated to promoting access to and scaling up higher-tier clean cooking solutions, selected ENGIE Energy Access Mozambique through a competitive application process under the Mozambique country program’s inaugural funding round (MCFA1). The selection process entailed a rigorous evaluation by independent experts followed by a comprehensive due diligence process conducted by Danish Energy Management A/S in collaboration with LFS Advisory.

MCFA has witnessed robust interest in its second funding round aimed at bolstering access to and scaling up high-technology clean cooking solutions in Sub-Saharan African countries. The ongoing evaluation of business plans received in response to the second call for proposals is expected to culminate in the selection of recipients by the end of August 2024.

About ENGIE Energy Access

ENGIE Energy Access is the leading Pay-As-You-Go (PAYGo) and mini-grids solutions provider in Africa. The company develops innovative, off-grid solar solutions for homes, public services and businesses, providing customers and distribution partners with access to clean, affordable energy. The PAYGo solar home systems are financed through affordable instalments and the mini-grids foster economic development by enabling electrical productive use and facilitating business opportunities for entrepreneurs in rural communities. With over 1,800 employees, operations in nine countries across Africa, in Benin, Cote d’Ivoire, Kenya, Mozambique, Nigeria, Rwanda, Tanzania, Uganda and Zambia, 2.5 million customers and more than 12 million lives impacted so far, ENGIE Energy Access aims to remain Africa’s leading clean energy company, serving millions of customers by 2025. Read more on: www.engie-energyaccess.com

About MCFA

The Modern Cooking Facility for Africa is a multi-donor facility established and managed by Nefco – the Nordic Green Bank – with the aim to support the development of new markets for the clean cooking sector and accelerate access to high-technology, modern and affordable cooking equipment for consumers in Sub-Saharan Africa, combining results-based financing with catalytic grant financing to companies active in the clean cooking market to grow and scale up their businesses in the programme countries.

The overall aim of the MCFA programme is to provide access to clean cooking solutions for approximately 4 million Africans. The current EUR 61.5 million MCFA programme was announced in November 2021 and is funded by the European Union, Norway and Sweden. Read more on www.moderncooking.africa

About Nefco

Nefco – the Nordic Green Bank – is an international financial institution based in Helsinki, Finland, owned by the five Nordic countries, focusing on environmental and climate investments to work with concrete actions to accelerate the green transition. Nefco also manages external funds in the climate and energy space. It is accredited by the European Union and the Green Climate Fund and is the Facility Manager for the Beyond the Grid Fund for Africa, a EUR 126 million multi-donor results-based financing facility funded by Denmark, Germany, Norway, Sweden and USAID. Read more on www.nefco.int

Media Contacts:

Kari Hämekoski
Senior Programme Manager at Nefco
kari.hamekoski@nefco.int
+358 10 618 0660

Latoya Adriano Martins
Marketing and Communication Manager at Energy Access Mozambique
Latoya.adriano@engie.com
+258 85 50 22 002

SOURCE: Nefco