By Abbas Nazil
The African Development Bank (AfDB)-led Green Mobility Financing Facility for Africa (GMFA) is set to expand its operations following the approval of $13.46 million in funding from the Global Environment Facility (GEF) to accelerate cleaner and low-emission transport solutions across the continent.
The approved financing package, announced by the GEF on 18 June 2026, includes a $12.46 million concessional loan and a $1 million technical assistance grant aimed at supporting sustainable public transport systems and reducing greenhouse gas emissions in African countries.
The initiative seeks to address growing challenges associated with rapid urbanisation, including increasing air pollution, traffic congestion and rising carbon emissions from transport activities.
Africa’s urban population is projected to double by 2050, creating increased demand for efficient public transportation systems and last-mile mobility solutions.
However, investment in electric mobility across the continent remains limited and fragmented, with many projects still operating at pilot stages due to high initial costs, technology risks, limited access to long-term financing and inadequate market readiness.
Through the new funding support, the Green Mobility Financing Facility for Africa will help unlock larger investments from both public and private sector actors by providing blended finance solutions, including concessional lending, senior debt financing, credit enhancement instruments and technical assistance.
The facility will support a wide range of green transport technologies, including electric buses, electric motorcycles and three-wheelers, renewable energy-powered charging stations, battery-swapping facilities and electric vehicle manufacturing initiatives.
The African Development Bank introduced the facility during the 2026 Global Environment Facility Integrated Programs Forum held in Nairobi, presenting it as an example of how innovative financing approaches can attract private sector investment into climate solutions.
Speaking during the forum, African Development Bank Group Climate Finance Expert Komal Hassamal said rapid urban growth would increase both transportation demand and climate pressures, requiring structured financial mechanisms to scale up clean mobility solutions.
She explained that electric mobility development in Africa has been slowed by high upfront costs, investor concerns and limited availability of long-term financing.
According to her, blended finance approaches, combined with supportive policies and improved market conditions, are necessary to transform electric mobility from small-scale pilot projects into large-scale sustainable transport systems.
The African Development Bank is also mobilising additional resources from its own financing mechanisms and development partners to support at least $169 million in investments in sustainable transport solutions across Africa.
The programme is receiving additional support from international climate and development finance institutions, including KOAFEC, the Sustainable Energy Fund for Africa and the Fund for African Private Sector Assistance.
These partnerships will help strengthen policy and regulatory frameworks, develop viable business models, prepare investment-ready projects and create a pipeline of future green mobility investments.
The AfDB said the initiative will play a critical role in supporting Africa’s transition toward cleaner transportation systems while contributing to climate action, improved air quality and sustainable urban development.
By expanding access to financing and reducing barriers to electric mobility adoption, the Green Mobility Financing Facility for Africa is expected to help countries across the continent build transport systems that are more resilient, environmentally friendly and capable of meeting future mobility demands.
