Africa50, the African Development Bank and the OPEC Fund for International Development on Thursday signed a Letter of Intent with the Government of Madagascar (LoI) to scale up the country's bioethanol production capacity. The LoI, announced during Africa50's General Shareholders Meeting in Antananarivo, seeks to support the transformation of Madagascar's energy landscape, benefitting millions of people reliant on unsafe cooking fuels.
Key signatories to the agreement include Olivier Jean Baptiste, Madagascar's Minister of Energy and Hydrocarbons; Khaled Al-Zayer, OPEC Fund Public Sector Director, East and Southern Africa; Alain Ebobissé, Africa50 CEO; and Kevin Kariuki, African Development Bank's Vice President for Power, Energy, Climate and Green Growth.
The partners intend to support bioethanol production and distribution in Madagascar by constructing and upgrading production infrastructure and strengthening supply chains to facilitate accessibility and availability for consumers. The program will improve access to clean cooking fuels, especially in remote and underserved areas, and reduce dependence on polluting fuels, which contribute to adverse health and climate impacts.
Currently, 99 percent of Madagascar's population relies on charcoal and wood for cooking, contributing to rapid deforestation in the country. The World Health Organization reports that indoor air pollution, largely caused by the use of such harmful fuels, is the second leading cause of premature death in sub-Saharan Africa and responsible for about 700,000 deaths annually - primarily among women and children under five.
Africa50 will act as the lead developer for the bioethanol production infrastructure, while the African Development Bank and the OPEC Fund intend to provide technical and financial assistance to the Madagascar Government. The initiative is part of Africa50 and the AfDB's broader efforts to mobilize innovative financing solutions to support the energy transition in Africa.
Minister Baptiste stated: "The widespread use of harmful fuels in Madagascar severely impacts health, gender, and climate. We are proud to be part of this partnership, which will increase access to clean cooking fuels and help safeguard the health and well-being of our citizens".
Al-Zayer emphasized: "Supporting clean cooking is a core element of the OPEC Fund's climate action strategy as it involves crucial aspects of sustainable development. Introducing clean, efficient, and affordable appliances will substantially improve public health, reduce adverse environmental impacts, and facilitate women's empowerment".
Ebobissé highlighted: "Africa50 is committed to increasing access to clean cooking fuel across Africa by joining forces with like-minded partners to scale up investment in bioethanol-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".
Kariuki 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".
Notes to Editors
Photo credit: AfDB
From left to right: Alain Ebobissé, CEO, Africa50; Khaled Al-Zayer, OPEC Fund Public Sector Director, East and Southern Africa; Olivier Jean Baptiste, Minister of Energy and Hydrocarbons of Madagascar; and Kevin Kariuki, Vice President, Power, Energy, Climate and Green Growth, African Development Bank (AfDB).
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries worldwide. Established in 1976, the OPEC Fund has, to date, committed about $27 billion to development projects in over 125 countries, with an estimated total project cost of more than $200 billion.
Contact: [email protected]
About Africa50
Africa50 is a pan-African infrastructure investor and asset manager that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 35 shareholders, comprised of 31 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information, visit: africa50.com.
Contact: Nana Boakye-Yiadom, [email protected]
About the African Development Bank Group
The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
Contact: Emeka Anuforo, Communication and External Relations Department, [email protected]
