Investment: CleanStar Mozambique

CleanStar Mozambique
CleanStar Mozambique is an integrated food, energy and forest protection business which retails clean cook stoves and bottled ethanol-based cooking fuel to low-income households in Mozambique’s capital Maputo, as a safe and affordable alternative to charcoal. The cooking fuel is produced at the company’s integrated food and energy plant in Dondo, which was opened in May 2012.

Raw materials for the plant are sourced from local farmers, who are transitioning from a slash-and-burn subsistence farming system to a more resilient conservation agriculture-based approach that produces sustainable surpluses and boosts farmer income and nutrition levels. CleanStar provides participating farmers with improved planting material and technical assistance, and purchases their surpluses at its rural agricultural centres in communities around the plant. Surplus cassava is converted to ethanol-based cooking fuel, flour and chicken feed, whilst beans, sorghum, pulses and soya are processed into packaged food products for sale in Mozambique’s cities.

Why we invested
Globally, 2.5 billion people still use open fires fueled by coal, wood and charcoal to prepare every meal. In the rural developing world, over 90% of total energy consumption is wood or other biomass (plant or animal matter). 1.6 million women and children per year – more than 4000 per day – die from lower respiratory disease related to indoor cooking smoke. An estimated 25% of global CO2 emissions are generated by the rural poor, more than all global transportation-related emissions combined. By displacing charcoal with clean cooking fuel, this investment will have a large positive impact on the health of low income families in Maputo, the environment, as well as create jobs through its various business lines with a target 1,000 new jobs to be created over the next five years.

Small holder farmers will also receive an increased income for selling product to the Company as well as significant knowledge transfer benefits through the demonstration plots and technical assistance provided. CleanStar Mozambique will directly improve the agriculture value chain through its investment in production, warehousing, marketing and distribution.

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