Leading integrated energy provider, Zener has secured €16.2 million from the International Finance Corporation to help Togo transition towards cleaner and safer energy sources. Proceeds from the funds will also be channeled towards reducing the use of polluting fuels for cooking in the West African country and mitigating climate change.
The financial package for Zener, which operates across Togo’s full liquified petroleum gas (LPG) value chain, comprises a loan of EUR 8.1 million of IFC’s own account, and a parallel loan of EUR 8.1 million to be mobilized from other partners. The funding will enable Zener to expand its LPG storage terminals in Togo by an additional 3,600 tons for both propane and butane LPG, and equip five gas retail filling stations being constructed by the company with LPG bottle exchange stations and solar kits.
The financing is aimed at increasing access to LPG as domestic energy in Togo. More than 90 percent of the country’s population uses biomass, such as charcoal and firewood, as its primary energy source for cooking, contributing to high levels of deforestation, greenhouse gas emissions, and negative health impacts from indoor air pollution, especially for women and children. Carbon emissions are cut by half when LPG replaces wood or coal, and about a third when it replaces fuel oil or kerosene. Building LPG distribution capacity and infrastructure will also help develop Togo’s manufacturing and power sectors.
“Zener owns the only seaborne LPG import terminal in Togo, which is currently operating at maximum capacity. The support from IFC will enable Zener to expand the terminal to continue increasing LPG adoption and help reduce the country’s carbon footprint as consumers adopt LPG as a better alternative to biomass fuels,” said Jonas Daou, Zener’s Managing Director.
Zener was identified by IFC under a pilot initiative called “Local Champions,” a program developed to support high-potential domestic companies in low-income markets. In addition to this financing arrangement, Zener has also received IFC advisory support, including a technical and needs assessment of its LPG cylinder manufacturing plant, and an independent market study of the LPG market in Togo.
“Togo’s LPG market remains small compared to neighboring countries’ due to a lack of enabling infrastructure,” said Kyle Kelhofer, IFC’s Senior Country Manager for Togo. “IFC’s financing will help Zener expand capacity in the comparatively lower-carbon LPG value chain and thus improve service quality and distribution efficiency, as well as the export of LPG to neighboring landlocked countries. That aligns with the government’s goal to position Togo as a regional hub, and supports efforts towards a lower carbon economy in Togo.”
