The Modern-Cooking Opportunity
The Modern-Cooking Opportunity
Nearly one billion people in sub-Saharan Africa still lack access to clean cooking. Investment is growing, but remains well below the level required to close the gap.
The opportunity spans technologies, fuels, infrastructure, distribution, consumer finance and the systems needed to deliver reliable household energy.
Opportunity at a glance
≈1bn
People without access to clean cooking
USD 770m
Investment in stoves and related infrastructure in 2024.
Around 70% from private capital and consumer spending.
More than USD 2bn
Annual investment required to reach universal access by 2040.
Under the referenced IEA scenario.
Source: IEA, Clean Cooking in Africa 2026. Figures relate to sub-Saharan Africa. Investment values are stated in 2025 US dollars at market exchange rates; the annual requirement reflects the referenced IEA access scenario.
Why modern cooking matters
Modern cooking can contribute to improved health, household welfare, climate outcomes and more resilient energy systems.
Health
Time and opportunity
Household economics
Climate and environment
Energy security
Structural shifts expanding the market
Policy momentum
Market signal
More than 120 clean-cooking policies and programs were implemented or announced between 2024 and early 2026, including more than 30 new national targets.
Investment implication
Policy attention improves market visibility, but implementation and regulatory consistency remain country-specific.
Supply-chain infrastructure
Market signal
LPG storage, electricity connections and modern-bioenergy supply chains expanded in 2024, though coverage remains uneven between markets.
Investment implication
Deeper infrastructure supports scale and resilience for LPG, electric and ethanol solutions where distribution can reach the customer.
Private and consumer capital
Market signal
Commercial finance accounted for 49% of tracked sector investment in 2024, with direct consumer spending contributing a further 20%.
Investment implication
A broader mix of capital providers can finance different layers of the value chain and match instruments to distinct operating risks.
Carbon-supported finance
Market signal
Carbon-credit revenue accounted for approximately 12% of tracked financial flows into the cooking sector in 2024.
Investment implication
Carbon revenues can support eligible business models, but verification timing, methodology change and market pricing limit their predictability.
Technology and business-model landscape
Modern-cooking solutions span several technologies and business models. Suitability depends on customer context, fuel supply, infrastructure and financing conditions; solutions are not interchangeable.
Improved biomass
Where it fits
Households and institutions that continue to rely on wood, charcoal or processed biomass and are transitioning to more efficient stoves.
Business models
Direct sales, consumer finance and, for eligible projects, carbon-supported distribution.
Financing needs
Inventory and receivables finance; carbon pre-finance where applicable.
Key constraints
Real-world performance, durability, sustained use and carbon-integrity requirements.
LPG
Where it fits
Urban and peri-urban households and institutions with access to reliable cylinder distribution and sufficient disposable income.
Business models
Bottling, cylinder circulation, refill networks and consumer-finance models.
Financing needs
Cylinder-fleet finance, infrastructure capital and working capital for fuel inventory.
Key constraints
Fuel-price and foreign-exchange exposure, supply resilience, safety requirements and cylinder management.
Electric cooking
Where it fits
Households and institutions with sufficiently reliable and affordable electricity service (grid, mini-grid or suitable distributed systems).
Business models
Appliance sales, consumer finance and utility- or mini-grid-linked offers.
Financing needs
Consumer-finance receivables; appliance working capital; complementary supply-side investment.
Key constraints
Grid capacity and reliability, tariffs, household wiring and upfront appliance costs.
Ethanol and modern bioenergy
Where it fits
Households and institutions in markets with established or developing bioethanol or modern-bioenergy supply chains.
Business models
Integrated appliance-and-fuel supply, with fuel-margin-based recurring revenue.
Financing needs
Fuel-production or import working capital; appliance distribution finance.
Key constraints
Feedstock or fuel availability, distribution scale, regulation and pricing.
Institutional and commercial
Where it fits
Schools, public institutions, humanitarian settings, restaurants and food-processing businesses with structured procurement.
Business models
Direct sales and service contracts; performance-based procurement; carbon-supported models where methodologies apply.
Financing needs
Contract and receivables finance; capital expenditure for equipment.
Key constraints
Procurement timelines, tender risk, and service and maintenance capacity.
Capabilities supporting multiple models
Consumer finance and PAYGo
Digital payments and receivables-based finance let customers pay for appliances and, in some models, fuel over time. Portfolio quality and servicing capacity determine scalability.
Distribution and last-mile service
Physical distribution, agent networks and after-sales service are often as important to commercial viability as the underlying product.
Carbon-supported business models
Carbon revenue can support distribution economics for eligible technologies, subject to methodology, monitoring, issuance timing, pricing and integrity risk.
A financing gap across the capital stack
Current investment sits well below the level estimated to be required for universal access. The gap is not concentrated in a single instrument; different layers of the value chain need different forms of capital.
Working capital
Growth debt
Structured finance
Carbon pre-finance
Catalytic or subordinated capital can support selected transactions where risks cannot yet be financed entirely on conventional commercial terms. The appropriate mix depends on the business model, market and underlying cash flows.
What determines investability
Not every modern-cooking opportunity is investable today. Four filters shape whether a specific business or transaction can be financed on commercial terms.