SUCCESS STORIES

The impact of our work

See how we’re supporting the economic development of social enterprises and their underserved clients.

C-Quest Capital (CQC), a social impact project developer working to transform the lives of people at the base of the pyramid (BoP). Through innovative carbon projects that provide access to sustainable energy services and clean energy cooking technologies.

According to the most recent data from the International Energy Agency (IEA), a staggering 2.6 billion people still don’t have access to clean and safe cooking methods. Instead, they rely on traditional fuels like firewood, kerosene, or coal for their cooking needs. Which has negative knock-on effects on climate and health.

To scale up its manufacturing operations, improve its supply chain and reach more BoP users across the SSA region, CQC required a substantial investment. BIX Capital saw this opportunity and has funded a total of 3 investment rounds to CQC to date through an impact receivables facility. The investment pipeline together with CQC includes a USD 800,000 investment made in 2016. Building on this collaboration, BIX Capital further supported CQC’s growth by closing a significant USD 2,750,000 “pathfinder facility” deal in Q4-2020, specifically aimed at expanding CQC’s clean cooking initiatives in SSA. Additionally, BIX Capital participated in a joint USD 10 million facility with FMO, taking a 36% junior stake, underlining their commitment to fostering social and environmental impact alongside CQC’s work.

The impact

Thanks to BIX Capital’s pioneering investments, CQC is on track to provide clean double cookstoves to a remarkable 7 million households by 2026. This initiative will positively impact the lives of over 28 million people across more than 15 sub-Saharan African nations, including Zambia, Malawi, Kenya, Uganda, Zimbabwe, Mozambique, Tanzania, and Angola. Notably, our investment will also make a significant contribution to mitigating climate change through clean products, with an impressive total reduction of 140 million tCO2e in greenhouse gas emissions anticipated by 2026.

Date

2016

Investment value

USD 13.55 million

Instrument

Underwriting Carbon Credits

SDG

cquestcapital.com

Envirofit is a social enterprise that specializes in designing, developing, and distributing clean cooking and energy-efficient technologies primarily for households in emerging and developing regions. Their mission is to address some of the critical issues associated with traditional cooking methods, such as indoor air pollution, environmental degradation, and health concerns.

BIX Capital saw the opportunity to make significant impact through an investment to Envirofit through multiple tranches of funding totaling USD 3m. This funding has assisted in the role-out of a clean stove programme and expansion across the pan-African region, which has supported the commercial growth of Envirofit’s business operations.

What makes this story unique is the positive financial ecosystem which allows Envirofit to repay their debts to BIX Capital through a carbon credits trading scheme. The Emissions Reduction Purchase Agreement (ERPA), which is a legally binding contract was structured into the deal. It facilitates the purchase and trading of carbon credits, which are backed by a Korean ERPA (Hyundai Green Power) and brokered by their buyer CERPD. Envirofit’s activities, with BIX’s financial backing, are converting any reductions in CO2 emissions into carbon credits, which they can then sell to pay back the loans and accrued interest for investors.

The impact

Since the investment from BIX Capital, Envirofit have been able to distribute 100,000 clean cooking stoves to 500,000 people living in rural areas in Kenya, Nigeria, Ghana, Liberia, and Cote d’Ivoire. The innovative nature of the energy efficient designs has saved 340,000 tCO2e in greenhouse gas emissions.

Date

2016

Investment value

USD 3 million

Instrument

Underwriting Carbon Credits

SDG

envirofit.org