Global climate finance is charging into Africa’s transport future, with Mirova’s $10 million commitment to ARC Ride positioning Kenya as a frontrunner in the electric mobility revolution in Africa.
As fuel prices soar and climate pressures mount, this deal reflects the shift toward low-carbon solutions, potentially slashing emissions while empowering gig economy workers.
Who is Mirova?
Mirova, founded in 2008 as part of Natixis Investment Managers, specialises in impact investing with a focus on energy transition and biodiversity.
Managing over €10 billion in assets, the firm targets high-impact projects in emerging markets to combat climate change.
Its Nairobi office played a pivotal role in structuring this deal, encouraging local partnerships and de-risking investments via blended finance, combining public and private capital to attract more funders.
Rim Azirar, Deputy Head of Emerging Market Energy Transition at Mirova, emphasised, “This investment reflects Mirova’s mission to support innovative, high-impact climate solutions in emerging markets. ARC Ride is redefining urban mobility in Africa through a scalable model that reduces emissions and improves livelihoods.”
This commitment aligns with Mirova’s broader strategy, including recent $10 million deals for solar projects in Vietnam and clean energy in India, proving its track record in scaling sustainable energy projects in emerging markets across the Global South.
ARC Ride
Established in 2020, ARC Ride has emerged as a frontrunner in Kenya’s electric two-wheeler market, addressing the chaos of urban transport dominated by gasoline-powered motorcycle taxis, or “boda bodas.”
With over 2 million bodas ferrying passengers and goods daily, the sector guzzles fuel and pollutes heavily, but ARC Ride’s Battery-as-a-Service (BaaS) model changes that.
Riders swap depleted batteries for charged ones at automated stations, eliminating range anxiety and slashing operational costs by up to 40% with no upfront bike purchases or fuel bills required.
Currently operating in Nairobi and expanding to Mombasa, ARC Ride has deployed hundreds of EVs, partnering with ride-hailing apps to integrate seamless electric rides.
CEO Joseph Hurst-Croft noted, “This partnership with Mirova marks a major milestone in our mission to make electric mobility accessible, affordable, and sustainable across Africa. With Mirova’s support, we’re not only scaling our operations in Kenya; we are laying the groundwork for a cleaner transport future across wider regions.”
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The $10 Million Deal
The funds will deploy over 600 battery-swapping cabinets and 25,000 batteries nationwide, supercharging ARC Ride’s infrastructure.
Structured as senior secured debt, it offers Mirova priority repayment while providing ARC Ride flexible capital for growth.
This isn’t just financing; it’s catalytic, de-risking the sector to draw more private investors amid Kenya’s EV market, projected to grow 10.6% annually through 2029.
Environmentally, each electric boda cuts CO₂ emissions by two tonnes yearly, potentially avoiding thousands of tonnes annually as the fleet expands.
Economically, it improves livelihoods for low-income drivers battered by fuel hikes, aligning with UN SDGs 13 (Climate Action) and 8 (Decent Work).
Broader Implications for Africa’s EV Revolution
Kenya’s EV push, backed by government incentives like tax waivers, positions it as an African hub. Yet challenges persist: grid reliability and charging access.
Deals like this bridge gaps, inspiring similar ventures in Uganda and Rwanda. As global funds eye Africa, where transport emits 20% of CO₂, Mirova’s bet could catalyse a $10 billion regional market by 2030.
Mirova’s $10 million infusion into ARC Ride isn’t mere capital; it’s a blueprint for sustainable urban transport.
By electrifying Kenya’s streets, it paves the way for a fossil-fuel-free future, proving green investment opportunities in Africa can thrive in emerging economies.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
