ENVIROFIT INTERNATIONAL, INC.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Envirofit International (“Envirofit”) is a global leader in the manufacturing and distribution of clean cookstoves. Envirofit is a social enterprise that uses a market-based approach to create access to affordable, efficient, clean cooking technologies for household and commercial uses. Their aim is to improve livelihoods, empower communities and transform lives. To date, the company has sold more than 1.6 million cookstoves in over 45 countries through extensive local distribution networks.
What is our funding objective?
In 2015-2016 FMO invested USD 3 million in Envirofit. Currently, FMO is considering making an additional investment of up to USD 2.0 million in the form of a convertible note to allow the Company to launch the roll out a newly developed and promising business line, called SmartGas™. In addition to Envirofit’s traditional biomass cookstoves, with SmartGas™ the Company is now able to offer its customers a cheap, efficient, pre-paid LPG solution based on a “Pay-as-you-Cook™” business model and smart metering technology.
Why do we fund this investment?
Envirofit’s clean efficient cookstoves have a positive development impact, as they help to reduce smoke, toxic emissions and fuel requirements as well as cooking time for rural and peri-urban households in emerging markets worldwide. In addition, Envirofit’s newest product, SmartGas™ will allow households to move up the energy ladder from cooking with wood or charcoal to cleaner, cheaper and healthier LPG. Given that the initial roll out of SmartGas™ is planned for Sub Sahara Africa, FMO is considering this investment from the Access to Energy Fund (AEF), whose investment mandate fits very well with its focus on clean and affordable energy.
What is the Environmental and Social categorization rationale?
From an Environmental and Social risk perspective, Envirofit is categorised as a category B investment. Creating positive Environmental and Social impact is at the core of Envirofit’s mission. Envirofit adheres to the IFC Performance Standards and has an Environmental and Social Action Plan (ESAP) in place, which focuses on grievance mechanisms, worker’s rights, and ensuring that these requirements are agreed back to back with contractors. In the SmartGas™ roll out, the company is paying extensive attention to safety aspects of cooking on LPG, including proper installation of the related equipment at the customer’s home, employee and customer trainings, mandatory safety checks, robust manuals and a customer care helpline.
More investments
| Date | Total FMO financing |
|---|---|
| 5/2/2019 | EUR 0.10 MLN |
| 8/31/2016 | USD 1.50 MLN |
- Website customer/investment
- http://www.enfirofit.org
- Region
- Africa
- Country
- Kenya
- Sector
- Energy
- Effective date
- 10/4/2018
- Total FMO financing
- USD 1.50 MLN
- Funding
- AEF-I
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B