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Rand Merchant Bank (RMB) has unveiled a strategic partnership with climate technology leader KOKO, acting as the lead mandated arranger and financier for an innovative carbon financing solution aimed at advancing KOKO’s climate objectives.
While the specific amount remains undisclosed, RMB has confirmed its latest investment in the climate tech company.
In Africa, where over 900 million people rely on polluting fuels like charcoal for cooking, leading to deforestation, millions of deaths from household air pollution, and greenhouse gas emissions comparable to the global aviation industry, a continent-wide energy transition is imperative.
KOKO is at the forefront of this transition, addressing the demand for charcoal by supplying bioethanol cooking fuel to over 1.1 million homes. This is facilitated through a network of high-tech KOKO Fuel ATMs strategically located in thousands of corner stores across urban Kenya.
The resulting carbon revenues are shared with households as a non-government energy subsidy, enabling even the most economically challenged households to make the switch.
Phil Norton, Carbon Finance Lead at RMB, expressed pride in the partnership, stating, “We are proud to partner with KOKO in supporting their continued rapid growth while bringing far more affordable and lower emissions energy to millions of people in Africa. As a pan-African investment bank, this deal fits well within our ambition to build a market-leading carbon trading and finance business operating across Africa, serving both existing and new clients.”
According to Greg Murray, CEO and co-founder of KOKO, RMB has shown strong conviction in harnessing carbon to transform 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.”
Nigel Beck, Head of Sustainable Finance and ESG Advisory at RMB, added, “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.”
The Nairobi Declaration, unveiled at the Africa Climate Summit in Kenya in September, is a pivotal part of Africa’s negotiating stance at the ongoing COP28 climate summit.
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