Challenges and Opportunities for Charcoal Briquette Enterprises in East Africa

Scaling briquette ventures has been a consistent challenge in the region. Yet, for the charcoal briquette industry in Africa to realize its true potential, it needs to operate as a viable business sector. The market for cooking fuel in SSA is enormous with fragmented competition and low barriers to entry. Charcoal briquettes produced in industrial settings and adhering to all the regulatory structures, effectively compete against a mostly informal firewood and charcoal sector, whose feedstock is mostly free or has escaped regulation. We assessed the business models of several charcoal briquette enterprises in the region that are trying to balance these competing influences. These cases serve to illuminate both the potential of the sector and the challenges that it currently faces. We highlight the challenges that could be addressed at policy-level and propose policy interventions that would greatly boost the contribution of charcoal briquettes to the energy, environment, and poverty eradication ambitions of African nations.

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