AfDB sustainable energy fund provides $1bn assistance

The African Development Bank (AfDB) Group’s Sustainable Energy Fund for Africa (SEFA) is set to provide a technical assistance grant of one million dollars to the Green Mobility Facility for Africa (GMFA).

As stated in an announcement on the AfDB website on Tuesday, GMFA will supply both technical guidance and funding for investments.

This initiative aims to expedite and expand private sector investments in eco-friendly transport options across seven countries.

Kenya, Morocco, Nigeria, Rwanda, Senegal, Sierra Leone, and South Africa are the countries involved.

According to Nnenna Nwabufo, Director-General of the AfDB’s East Africa Regional Development and Business Delivery Office, mobility serves as an essential connection that links individuals to critical services, employment, educational opportunities, and resources.

“The African Development Bank is dedicated to fostering a sustainable and more climate-adaptive future by stimulating private investment in low-carbon solutions.

“We believe GMFA will significantly influence the African market by hastening the transition to green mobility, reducing over 2,175,000 carbon dioxide equivalent tons of greenhouse gas emissions and enabling the creation of 19,000 full-time positions.”

Furthermore, Clare Akamanzi, Chief Executive Officer of the Rwanda Development Board, mentioned that the anticipated future demand for mobility solutions and vehicle ownership is likely to grow.

“Anticipated demand for mobility solutions and vehicle ownership is expected to rise with rapid urbanization, population expansion, and economic growth.

“We are thrilled to receive this backing from AfDB. We view this as a significant endorsement of our efforts to transition to e-mobility solutions and promote Rwanda’s shift to a low-carbon economy.”

Rwanda is one of the seven pilot nations for GMFA.

The SEFA grant is projected to aid in creating a conducive environment for Electric Vehicles (EVs), developing EV business frameworks, and establishing guidelines for both public and private sectors.

It will also bolster the formation of a bankable array of e-mobility projects, regional collaboration, and knowledge dissemination among various other upstream activities.

This initiative is aimed at helping to stimulate further private sector funding during the following investment phase of the GMFA. (NAN)