March 24, 2014

Madagascar Charcoal Company

dawn during the dry season showing water efficiency of bambooCharcoal is the primary cooking fuel for over 85% of the urban population in Madagascar, and is consumed at an ever-growing rate.

The Madagascar Charcoal Company (MCC) is an impact business that renders key towns in Madagascar self-sufficient with their cooking fuel energy demands, by producing thick-walled bamboo and other fuelwood species as a sustainable source of ‘green’ charcoal.

The biomass will be carbonised using efficient modern equipment. The fuel is sold to low-income households through existing channels. Once the local demand is rendered sustainable the remaining production will be exported through the nearby port to
international charcoal commodity markets. The combined revenues deliver a profitable business that can subsequently expand to at least 6 other towns.

The business works in close partnership with a smallholder farmers Co-op, which rents land to the business. Following investor-payback, the Co-op gradually assumes full ownership of the business over a period of about 20 years.

The MCC initiative reduces poverty, protects biodiversity, delivers employment and investor returns, as well as environmental and poverty-reduction impacts. Our first town of operations is Fort Dauphin on the south-east coast.

MCC business summary: