The Sustainable Energy Fund for Africa (SEFA)— a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency will provide $1 million technical assistance grant to the Green Mobility Facility for Africa (GMFA), the African Development Bank Group announced on Jan. 31 through a press release.
“Mobility is a fundamental lifeline that connects people to critical services, jobs, education, and opportunities,” said Nnenna Nwabufo, Director-General of the Bank’s East Africa Regional Development and Business Delivery Office.
GMFA offers a wide range of technical assistance and investment capital to accelerate and expand private sector investments in green transport solutions in seven African countries: Kenya, Nigeria, Morocco, Rwanda, Senegal, South Africa, and Sierra Leone.
The SEFA grant will help create an enabling environment Electric vehicles (EVs), as well as business design models and guidelines for the private public sector. The grant will also support the development of the bankable pipeline of e-mobility projects, regional coordination, knowledge sharing, and many other upstream activities to help facilitate follow-on private sector financing during subsequent GMFA investment phase.
“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,” Nwabufo added.
According to Clare Akamanzi, Chief Executive Officer of the Rwanda Development Board, future demand for mobility solutions and vehicle ownership is expected to increase due to rapid urbanization, 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,” she added.
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, the African Development Bank says.