Up to EUR 16 million Funding available for Clean Cooking Companies in Sub-Saharan Africa

The Modern Cooking Facility for Africa (MCFA) is a multi-donor facility established and managed by the Nordic Environment Finance Corporation (Nefco) with the aim to support the development of new markets for the clean cooking sector and accelerate access to modern and affordable cooking solutions for consumers in SubSaharan Africa. MCFA offers a combination of results-based financing (RBF), non-reimbursable catalytic grant financing and technical assistance (TA) to companies active in the clean cooking market to grow and scale up their businesses in the Democratic Republic of the Congo (DRC), Kenya, Malawi, Mozambique, Tanzania, Zambia and Zimbabwe (the Project Countries).

MCFA2 aims to incentivise CSPs to establish or scale up their existing innovative sustainable local businesses in the Project Countries and thereby accelerate access to modern, higher-tier clean cooking services (CCS) for consumers in these countries.

MCFA2 can support clean cooking services that are based on CSPs’ sales of:

• Tier 4-5 electric, bioethanol, biogas, bio-LPG, LPG (only in selected countries) and solar (thermal and photovoltaic) stoves; and
• Tier 3+ gasifier and forced-draft rocket stoves using sustainable briquettes and pellets.

CCS that incorporate pay-as-you-go (PAYGO) and/or stove use monitoring (SUM) or that are provided under a ‘tool and fuel’ model are particularly encouraged. Sales of energy-efficient commercial cooking services and institutional cooking services to serve critical needs related to, e.g., education, food security, sterilisation of medical equipment and clean drinking water can also be supported.

Funding Information

• The total available MCFA2 funding is up to EUR 16 million. MCFA2 funding is made available under two Funding Windows: a Catalytic Funding Window and a Scale-Up Funding Window, as presented below.
• A certain proportion of MCFA2 funding is earmarked to projects offering CCS based on sales of Tier 4-5 electric, bioethanol, biogas, bio-LPG and solar (thermal and photovoltaic) stoves as well as Tier 3+ gasifier and forceddraft rocket stoves using sustainable briquettes or pellets as follows:
  • DRC: up to EUR 1.0 million
  • Zambia: up to EUR 8.2 million
  • Zimbabwe: up to EUR 2.0 million
• The remaining MCFA2 funding can be used to fund projects in any Project Country.
• Catalytic Funding Window
  • The Catalytic Funding Window is targeted at earlier stage companies with the potential to scale their operations in selected Project Countries, i.e. in the DRC, Malawi, Mozambique, Zambia or Zimbabwe. Up to 50% of the requested MCFA2 funding within this window can be provided in the form of non-reimbursable catalytic grants and the rest as RBF. The minimum co-financing must be equal to the RBF component, i.e. a minimum of 50% of the total MCFA2 funding requested.
• Scale-up Funding Window
  • The Scale-up Funding Window is open to Applicants in all Project Countries and is targeted at more mature companies with the potential to scale their existing operations in a Project Country or to enter a new market in an MCFA Project Country. Up to 30% of the requested MCFA2 funding within this window can be provided in the form of a non-reimbursable catalytic grant and the rest as RBF. The minimum co-financing must be equal to the RBF component, i.e. minimum 70% of the total MCFA2 funding requested.

Eligibility Criteria

• Applicants (i.e. companies applying for MCFA2 funding individually or on behalf of a Project Consortium) should be for-profit companies. Applicants should be legally incorporated and included in the register of for-profit companies in the Project Country or commit to being incorporated and registered as such before signing a possible contract with Nefco. Nefco will only sign a possible contract for MCFA2 funding with entities that are legally incorporated and validly existing in the Project Country.
• Applicants should be in compliance with all tax, regulatory and legal frameworks in both their home country and the Project Country (if different).
• Applicants may include non-profit entities, public institutions, community-based organisations or other noncommercial entities in the project implementation as Consortium Members or Project Partners. No governmental entity, public agency or donor may function as a Consortium Member or Project Partner. Information on any listed companies will be required in the application, if applicable.
• CSPs that were or will be contracted under MCFA1 are not eligible to receive funding under MCFA2 for the same Project Country. In other words, a previously successful Applicant can only receive funding in another MCFA Project Country.

For more information, visit Modern Cooking Facility for Africa (MCFA).