NAIROBI, Kenya (XOL Africa) — The Global Environment Facility has approved $13.46 million to support an African Development Bank-led initiative aimed at accelerating the development of cleaner and lower-emission transport systems across Africa.
The funding approved June 18 for the Green Mobility Financing Facility for Africa includes a $12.46 million concessional loan and a $1 million technical assistance grant, the African Development Bank said in a statement released Monday.
The facility is designed to attract private investment in sustainable transport through blended finance and credit enhancement instruments, including concessional and senior debt, alongside technical assistance.
The initiative will support the development of efficient, low-emission public transport systems and help reduce greenhouse gas emissions across the continent.
Africa’s urban population is expected to double by 2050, increasing demand for public transportation and last-mile mobility while worsening challenges linked to air pollution, traffic congestion and climate change.
Investment in electric mobility across the continent remains fragmented and largely limited to pilot projects, constrained by high upfront costs, perceived technology risks, limited access to long-term financing and insufficient market readiness.
The new GEF funding will help operationalize the facility and unlock additional public and private capital for sustainable transport projects. Eligible technologies include electric buses, electric two- and three-wheelers, renewable-energy-powered charging infrastructure, battery-swapping stations and electric vehicle manufacturing.
The African Development Bank unveiled the Green Mobility Financing Facility for Africa during the 2026 Global Environment Facility Integrated Programs Forum in Nairobi in April, presenting the initiative as an example of how blended finance can attract private investment for climate action.
“Rapid urbanisation will double Africa’s urban population by 2050, increasing demand for public transport and climate pressures,” African Development Bank Group Climate Finance Expert Komal Hassamal said at the forum.
“E-mobility remains fragmented and pilot-based, constrained by high upfront costs, risk perceptions and limited long-term financing,” Hassamal said.
“What is needed is structured blended finance to scale private investment, alongside policy and market readiness support from the GEF and partners.”
Building on the GEF’s support, the African Development Bank is seeking additional funding from its own financing windows and development partners to mobilize at least $169 million in investment for sustainable transport solutions across Africa.
The program is also supported by partnerships with international climate and development finance mechanisms, including the Korea-Africa Economic Cooperation, the Sustainable Energy Fund for Africa and the Fund for African Private Sector Assistance.
The additional resources are expected to help strengthen policy and regulatory frameworks, prepare projects, develop viable business models and build a pipeline of sustainable transport investments across the continent.
