Paradigm Kenya
Market Need – Clean, Efficient Cookstoves
Imagine having to carry 40 pounds of wood for miles, risking beatings and sexual assault, only to expose yourself and your children to toxic smoke just to cook a couple of meals for your family. That is the daily experience of hundreds of millions of women in the developing world.
Nearly half the world’s population uses open fires fueled by coal, wood or charcoal to cook their food with the following consequences:
- 1.9 million women and children die each year from lower respiratory disease caused by indoor cooking smoke.
- Women or their children may spend 10 to 30 hours per week foraging for wood, exposing them to the risks of theft, beatings and rape.
- Families spend $120 per year on cooking fuel – as much as a third of their annual income.
- 25% of global CO2 emissions are generated by the rural poor, more than all global transportation-related emissions combined.
- High demand for wood and charcoal for cooking contributes to deforestation and increases pressure on natural resources and habitats.
Energy-efficient, clean-burning cookstoves are among a handful of priority needs of low-income households in Africa that can be profitably supplied whilst generating economic, social and environmental benefits.
Investment — Paradigm Kenya
SpringHill has taken a significant minority stake in Paradigm Kenya. Paradigm is distributing locally made stoves under the JikoPoa brand, as well as an imported model at a higher price point from Envirofit. Both stove models burn more efficiently and cleanly, saving half the fuel and attendant costs and eliminating 85% of the toxic smoke emissions.
Compared with the other cookstove businesses we reviewed, we were impressed by Paradigm’s leadership — both local and international — and their:
- Creative business model that leverages relationships with NGOs to extend distribution reach and provide after-sales service and support to ensure that customer benefits and economic value are maximized.
- Expertise and established relationships in the carbon markets.
- Local cookstove manufacturing and distribution model that is designed to sustain itself without carbon income in the long-term.
- Rapid market traction with the first full year of sales exceeding 80,000 stoves — four times original business plan projections.
- Near-term potential to expand into the rest of East Africa.