Modern Cooking Facility for Africa

Key Results in 2024 - MCFA grew to 61.5 MEUR - 177 applications received in MCFA2, 11 shortlisted - Over EUR 5.7 million was disbursed to companies during 2024 - 13,5 MEUR leveraged co-financing - 13 portfolio companies contracted - NEFCO collaborations: GET.invest, Clean Cooking Alliance - Milestones in carbon finance, technical assistance, and donor expansion - Participation in Paris summit on clean cooking endorsing declaration on CC as a critical global priority _________ With the contracting of MCFA 2 companies expected to be completed in 2025 and with 9,530,620 SEK mobilised in 2024 alone, Sida's assesment is that the quantified objectives set out in the appraisal stage are well on track to be met and surpassed. It should also be noted that Nefco is currently developing a tool to better measure and showcase the impact MCFA is having interms of avoiding emissions, loss of biodiversity and improved health, which are important objectives in the program. With the launch of the catalytic and scale-up funding windows in MCFA 2 and the contracting of new companies, Sida's assessment is that allocated funds for payments for modern cooking services will be able to be put to use. Risk Adjustments In regards to risk it is evident that the risk of there not being enough CSPs can be deemed as low rather than medium with the funding windows of MCFA 2 recieving a record number of applications. Nevertheless, the risk that CSPs do not reach the intended scale still remains medium as there are many factors that determine whether CSPs reach the intended scale after contracting. For example, CSPs may not deliver the intended results, may not reach the expected number of customers or may fail to reach financial sustainability. Therefore, the two above mentioned risks that were previously in a combined risk category have been seperated in the risk registry below to better reflect the risk levels of each. A number of risks identified in the initial appraisal have not materialized and are hence removed. These are: - Insufficient CSPs: The strong response to the calls under MCFA1 has shown that this risk did not materialize. - Concentration Risk to One Company (BURN): The portfolio, along with the second call and the concluded contracts under MCFA1, is diversified enough to mitigate any potential concentration risk, ensuring the program can achieve its objectives. - Macro-Economic Conditions in Zimbabwe: With one company contracted under MCFA1 performing among the best in the MCFA portfolio and another company in the pipeline under MCFA2, this risk is removed. Agreement amendment Sida is currently planning an extension of its agreement for MCFA. The extension is needed because the four-year contracts with companies go beyond the original program timeline, meaning final service deliveries will take place after the current agreement period. The proposed Amendment of Contribution aims to extend the activity period from 31 December 2026 to 31 December 2028 and the agreement period from 31 December 2028 to 31 December 2030 between Sida and Nefco for the Modern Cooking Facility for Africa (MCFA) program. This extension is necessary because the contracted companies will not complete their deliveries within the current agreement period. The amendment ensures the program can continue its impactful work and meet its ambitious targets. The amendment also reduces the budget for the DRC and Zimbabwe components aligning the budget to received offers in the second procurement round.

The Modern Cooking facility for Africa aims to contribute to SDG 7 - access to affordable, reliable, sustainable and modern energy. In addition the contribution expects to have significant impacts on SDG 3 - ensure healthy lives and well-being for all ages, SDG 5 - achieve gender equality, SDG 13 - action to combat climate change and SDG 15 - protect, restore and promote sustainable use of ecosystems. The overall purpose of MCFA has not changed with the addition of Zimbabwe although the expected specific targets have increased with the addition of one more country window. _____ The goal of Sida's support to MCFA is to contribute to creating the conditions necessary for developing a self-sustaining clean cooking market in the DRC, Kenya, Mocambique, Tanzania, Zimbabwe and Zambia which serves the needs of people living in poverty. To this end, MCFA is expected to contribute to the following results areas in the respective strategies: Renewable energy and the sustainable use of natural resources (DRC, Kenya, Mozambique, Tanzania, Zimbabwe, Zambia), through - Reaching some 350 000 to 700 000 Tier 4-5 and Tier 3 briquette and pellet cookstove customers and sell 15 000-22 000 tons of fuel - Reaching around 1.8-3 million beneficiaries (0.7%-1.5% of the total population across the target countries). Environment, climate and sustainable use of natural resources (DRC, Kenya, Mozambique, Tanzania, Zimbabwe, Zambia), through - Annually avoiding emissions of 1.5-3 million tons of CO2 equivalent (tCO2e) and 1-3 ktons of black carbon. - Improving biodiversity through reduced deforestation stemming from charcoal production, amounting to an estimated avoided loss of forest cover of between 40 000-90 000 ha Gender equality (DRC, Kenya, Mozambique, Tanzania, Zambia) and improved health (DRC, Zambia), through - Improving health, especially for women and girls who spend a lot of time cooking in a hazardous environment, amounting to between 50 000 and 100 000 ADALYs Economic growth (DRC, Kenya, Mozambique, Tanzania, Zimbabwe, Zambia), through: - Growing the clean cooking sector including formal employment opportunities - Increasing the amount of decent jobs - Mobilizing private debt and equity into the CSPs with a leverage ratio of 1:1 The above results indicators will be tracked and reported for all contributing development cooperation strategies, irrespective if there are goals related to the indicators in the strategies or not.