At the Clean Cooking Investment Forum in the Rwandan capital Kigali in early November, 300 stakeholders came together to examine the possibilities for boosting the clean cooking sector. The forum, organised by the Clean Cooking Alliance (CCA) and Energy Private Developers (EPD), was attended by investors, stove producers, government officials and development experts. EnDev was one of the event’s key partners and co-funded the stove exhibition.
In the lively panel discussion ‘Market Developer Perspective’, a team from EnDev drew attention to the group of semi-industrial, local stove producers in the middle segment, seeking capital to boost their business. Co-director, Marcel Raats explained,
“Extra attention is needed for the next generation of semi industrial stove producers who sell large numbers and are on the verge of becoming bankable. They are not looking for millions but would need an invest ticket size in the range of 50,000 to 100,000 euros to be able to boost their business.”
Local market intelligence
During the Q&A, several local stove companies from Ethiopia, Kenya, Uganda, Rwanda and Tanzania, many of them supported by EnDev, pointed out that they have the local market intelligence. However, they raised concerns about formalisation and their capacity to develop business and financial plans. Investors responded positively by reaching out to them and EnDev is keen to follow up this gesture. In his closing conference statement, Peter George of the Clean Cooking Alliance addressed these concerns stressing,
“At this Investment Forum we have also learned that we need to focus on high-growth local stove ventures that are unable to tap into the finance market yet.”
The Energising Development Partnership Programme (EnDev) was launched in 2015. In the Sahel and Horn of Africa it forms part of Foreign Trade and Development Cooperation Minister Kaag’s Investing in Perspective policy. EnDev gives households, social institutions and small and medium-sized enterprises (SMEs) in developing countries access to modern energy technologies and services. The programme operates in 25 countries in Africa, Latin America and Asia. EnDev is a partnership between Netherlands, Germany, Norway, Australia, the United Kingdom and Switzerland, and is coordinated by the Netherlands Enterprise Agency and German Gesellschaft für Internationale Zusammenarbeit (GIZ).
Find out more about the Energising Development Programme (EnDev).
The original version of this article was published on the EnDev website: EnDev successfully calls for increased attention of middle segment, local stove producers at Clean Cooking Investment Forum.