Quick Look
- The project supports the development and financing of bioethanol production and distribution infrastructure in Madagascar
- The initiative will reduce the intensive deforestation in Madagascar which is partly caused by the use of cooking fuel such as charcoal and wood
- The Letter of Intent is expected to limit reliance on harmful fuels that have a devastating impact on climate and public health – women and children are most at risk
Africa50, the African Development Bank (AfDB), the OPEC Fund for International Development and the Government of Madagascar have signed a Letter of Intent (LoI) to scale up the production capacity of bioethanol in Madagascar – a major step towards making clean and safe cooking a reality for millions of people across the country.
The announcement was made in Antananarivo on the sidelines of Africa50’s General Shareholders Meeting (GSM) with signatories including Hon. Olivier Jean Baptiste, Minister of Energy and Hydrocarbons of Madagascar; Khaled Al-Zayer, OPEC Fund Public Sector Director, East and Southern Africa; Alain Ebobissé, CEO, Africa50; and Kevin Kariuki, Vice President, Power, Energy, Climate and Green Growth, African Development Bank (AfDB).
The partners intend to support the uptake of bio-ethanol in Madagascar through the construction and improvement of production infrastructure and the strengthening of supply chains to increase downstream distribution capacity and facilitate accessibility and availability for consumers. The program aims to rapidly increase access to clean cooking in remote and underserved areas and reduce dependence on highly polluting cooking fuels which have a severe impact on health, gender and climate.
It is estimated that 99 percent of Madagascar’s population rely on charcoal and wood for cooking, which contributes to rapid deforestation in the country.
The World Health Organization (WHO) reports that indoor pollution, which is largely caused by cooking using harmful fuels, is the second leading cause of premature death in sub-Saharan Africa, responsible for c. 700,000 deaths annually – primarily among women and children under 5.
Africa50 intends to act as the lead developer for the production infrastructure, while AfDB and OPEC Fund intend to provide technical and financial assistance to the Government of Madagascar which will help implement the project.
The LoI forms part of broader efforts by Africa50 and AfDB to mobilize innovative finance to support the energy transition in Africa.
Olivier Jean Baptiste, Minister of Energy and Hydrocarbons of Madagascar, said:
“The widespread use of harmful fuel in Madagascar is a practice that impacts negatively on health, gender and climate in Madagascar. As part of our mandate to develop critical infrastructure for our citizens, we are proud to be part of this partnership which will move the dial on access to clean cooking fuel in Madagascar”.
Khaled Al-Zayer, OPEC Fund Public Sector Director, East and Southern Africa, said:
“Supporting clean cooking is one of the key elements of the OPEC Fund’s climate action as it involves many crucial aspects of sustainable development. Introducing clean, efficient and affordable appliances makes substantial contributions to improving public health, reducing adverse environmental impacts and facilitating women empowerment”.
Alain Ebobissé, CEO, of Africa50, said:
“Africa50 is committed to increasing access to clean cooking fuel in Africa by joining forces with like-minded partners to scale up investment in bio-ethanol related infrastructure. We are pleased to be part of this partnership with the Government of Madagascar as part of broader efforts to develop critical infrastructure in the country that will limit deforestation and climate change while improving livelihoods”.
Kevin Kariuki, Vice-President: Power, Energy, Climate & Green Growth, African Development Bank, said:
“This is an important step for increasing access to clean cooking fuel in Madagascar. Developing critical infrastructure that saves lives and positively impacts climate is a key part of our investment strategy at the AfDB, and we are delighted to partner with Africa50, the OPEC Fund, and the Government of Madagascar to advance clean cooking in the country”.
