$1 Million - Sustainable Energy Fund for Africa Grant to Drive Electric Mobility Shift in Seven African Countries

31 January 2023
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African Development Bank (Abidjan)
press release

The African Development Bank is providing $1 million to support private investment in sustainable transport in seven African countries.

The Sustainable Energy Fund for Africa (SEFA) of the African Development Bank Group will provide a $1 million technical assistance grant to the Green Mobility Facility for Africa (GMFA).

GMFA provides technical assistance and investment capital to accelerate and expand private sector investments in sustainable transport solutions in seven countries: Kenya, Morocco, Nigeria, Rwanda, Senegal, Sierra Leone, and South Africa.

The SEFA grant will support the creation of an enabling environment for Electric vehicles (EVs), the design of EV business models and guidelines for the public and private sector, the development of a bankable pipeline of e-mobility projects, regional coordination, and knowledge sharing amongst other upstream activities to help catalyse follow-on private sector financing during the subsequent investment phase of the GMFA.

"Mobility is a fundamental lifeline that connects people to critical services, jobs, education, and opportunities," said Nnenna Nwabufo the Director-General of the Bank's East Africa Regional Development and Business Delivery Office. "The African Development Bank is committed to building a sustainable and more climate-resilient future by catalysing private investment in low-carbon solutions. We believe GMFA will have a tremendous impact on the African market by accelerating the shift to green mobility, reducing over 2,175,000 carbon dioxide equivalent tons of greenhouse gas emissions and facilitating the creation of 19,000 full-time jobs."

"Future demand for mobility solutions and vehicle ownership is expected to increase with rapid urbanisation, population growth, and economic development. We are delighted to receive this support from AfDB. We see this as a vote of confidence in our efforts to shift to e-mobility solutions and advance Rwanda's transition to a low-carbon economy," said Clare Akamanzi, Chief Executive Officer of the Rwanda Development Board. Rwanda is one of seven pilot countries for GMFA.

About SEFA

SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. The Fund's overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and Sustainable Development Goal 7.

Read the original article on African Development Bank (AfDB).

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