By Faridat Salifu
Industry experts gathered at the Invest in African Energy (IAE) 2024 forum, held recently in Paris, has said that investing in clean cooking technologies could lead to growth in Africa.
Peter George, Partner and Co-Investment Director at Spark+ Africa Fund, and Amena Bakr, Senior Research Analyst at Energy Intelligence, discussed how such investments could drive significant community development on the continent.
George pointed out the substantial market opportunity in Africa, noting that the continent spends between $20-40 billion annually on cooking fuel.
“This presents a vast market for the LPG industry, electrification to support electric cooking stoves, and fertilizers that can boost agricultural yields,” he said.
“There are numerous avenues to address the energy access gap, offering substantial market opportunities.”
During their conversation, it was revealed that clean cooking technologies could save at least 200 million hectares of forests globally by 2030.
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Moreover, these technologies are expected to cut greenhouse gas emissions by up to 1.9 gigatons of CO2 equivalent per year, which is comparable to the current emissions from all airplanes and ships combined.
“Clean cooking impacts 11 of the 17 Sustainable Development Goals,” George remarked.
“Considering the costs associated with deforestation and lost productivity, the financial burden of lacking modern infrastructure is immense. In Africa alone, this cost is approximately $800 million annually.”
George advocated for leveraging concessional investments from the public sector to attract private capital from commercially driven investors seeking higher returns in Africa’s emerging markets.
“Affordability is crucial, especially in Africa,” added Bakr.
During the first day of the IAE 2024 summit, a significant partnership was announced between the African Refiners and Distributors Association and the Global LPG Partnership.
This collaboration aims to mobilize $1 billion in funding for clean energy solutions, facilitating a sustainable transition to cleaner cooking fuels.
