Rand Merchant Bank (RMB) has announced a significant partnership with KOKO, a forefront player in climate technology.
In this collaboration, RMB assumes the role of the lead mandated arranger and financier for an innovative carbon financing solution, aimed at advancing KOKO’s climate-centric goals.
Across Africa, a staggering 900 million people rely on polluting fuels like charcoal for cooking, directly contributing to deforestation spanning millions of hectares. This practice also results in over 600,000 deaths annually due to household air pollution, and the emission of greenhouse gases on a scale comparable to the global aviation industry.
Addressing this challenge necessitates a comprehensive continent-wide shift to cleaner and more modern fuel sources.
According to Greg Murray, CEO & Co-Founder of KOKO, RMB has demonstrated strong conviction on the opportunity to harness carbon in a manner that transforms the lives of Africa’s citizens.
“We’ve been looking for an entrepreneurial banking partner that understands Africa, climate markets and technology. We are proud to embark on this long-term partnership with RMB to help accelerate the expansion of KOKO’s platform across Africa.”
KOKO stands at the forefront of driving this transition. By providing bioethanol cooking fuel to over 1.1 million homes, the company is effectively reducing the demand for charcoal. This sustainable solution is dispensed through a sophisticated network of KOKO Fuel ATMs strategically positioned in numerous corner stores across urban Kenya.
The generated carbon revenues are then shared with households, effectively functioning as a non-governmental energy subsidy. This financial support facilitates the transition to cleaner energy sources, making it accessible even to the most economically disadvantaged households.
Nigel Beck, Head of Sustainable Finance and ESG Advisory at RMB, adds: “Partnering with KOKO will help develop the African carbon market and will align closely with the Nairobi Declaration, Africa’s recently communicated strategy on using carbon as a mechanism to help finance Africa’s Energy transition.”
