The ASISA ESD Fund, managed by Edge Growth, is dedicated to backing SMEs that are poised to make significant social and economic contributions, especially in light of South Africa’s current economic challenges.

This latest funding round expands Edge Growth’s roster of impactful businesses, enabling the firm to continue strengthening resilient companies in the SME sector.

Notable among these are local startups such as TSL Legal, a legal technology firm; Rentoza, a subscription-based electronics service; DKN Transport, a logistics provider; and SweepSouth, a home services platform.

Each of these aligns with the ASISA ESD Fund’s mission to promote an inclusive economy that benefits both entrepreneurs and underserved communities.

Edge Growth’s investment strategy provides more than just financial backing; it also offers SMEs strategic guidance and market access support to promote sustainable scaling.

Since its establishment in 2007, Edge Growth has played a pivotal role in South Africa’s SME ecosystem, managing assets worth over €115 million ($120 million) and addressing persistent challenges like funding gaps and limited business skills that often impede SME growth.

ASISA ESD Fund Chairperson Fay Mukaddam highlighted that the fund prioritizes sectors with the potential for wide-ranging societal benefits.

She noted that the fund’s mission extends beyond financial gain, aiming to support projects that uplift historically underserved South African communities.

Among Edge Growth’s notable investments, Rentoza stands out for making consumer electronics more accessible through its subscription model, which helps alleviate upfront costs for consumers.

This model addresses the growing demand for affordable tech options and exemplifies Edge Growth’s commitment to sustainable, impactful investments.

With the newly acquired $2.1 million, Edge Growth aims to deepen its support for SMEs that contribute to job creation, social value, and economic resilience.

Additionally, the ASISA ESD Fund recently formed a partnership with Proparco, a French development finance institution, securing a €2 million ($2.2 million) ARIZ PRIME portfolio guarantee.

This guarantee helps mitigate the risks associated with early- and growth-stage investments, fostering a more robust framework for supporting SMEs in South Africa.

The financing will enable BURN to offer the cookers through its “Pay-As-You-Cook” model, a flexible payment solution designed to make clean cooking technology more accessible to households that cannot afford full upfront payments.

Founded and headquartered in Kenya, BURN has expanded its impact across nine countries, employing over 3,500 people.

Its ECOA Electric Induction Cooker, manufactured entirely in Kenya, is part of a three-piece stainless steel cookware set aimed at reducing indoor air pollution, cutting cooking time, and saving household fuel expenses.

BURN reports having distributed over five million clean cookstoves across Africa to date, helping households transition from traditional fuel sources such as firewood and charcoal to cleaner, more sustainable alternatives.

Peter Scott, Founder and CEO of BURN, emphasized the importance of the EIB investment, stating that it will enable BURN to scale its Pay-As-You-Cook electric solution, already launched in Kenya and Tanzania, to reach over a million low-income households.

The cookers are compatible with grids powered largely by renewable energy sources, which are estimated to supply 80-95% of the electricity for these communities.

This EIB investment follows a series of funding rounds for BURN. Recently, the company secured $9.2 million from Marex to boost the production, distribution, and monitoring of its clean cooking products in multiple African countries.

Marex’s funding also raised Key Carbon’s total investment in BURN’s carbon credit projects to $45 million across eight African nations.

Earlier in 2024, BURN received over $12 million in funding led by Key Carbon Ltd. and Cartesian to expand electric cookstove distribution in Kenya, Tanzania, Uganda, and Zambia, alongside biomass stoves in Nigeria, DRC, Tanzania, and Mozambique.

To meet growing demand, BURN inaugurated its first assembly plant in Kano, Nigeria, in Q2 2024, enhancing local access to affordable clean cooking solutions in the region.