Rand Merchant Bank (RMB), a leading African corporate and investment bank, has invested in climate tech start-up KOKO as part of its carbon business growth project aimed at promoting green energy and forest conservation throughout Africa.
KOKO, a climate tech firm operating in emerging markets, is a pioneer in the transition to clean and modern fuels across the continent, says RMB.
RMB states that roughly 900 million people in Africa use harmful fuels like charcoal for cooking, causing deforestation on a massive scale and resulting in over 600,000 deaths due to indoor air pollution each year. This practice also emits greenhouse gases on a scale similar to the world’s aviation industry.
KOKO currently provides bioethanol cooking fuel to over 1.1 million homes through its dense network of advanced KOKO fuel ATMs located in thousands of corner shops across urban Kenya.
Phil Norton, RMB’s carbon finance lead, believes this deal aligns well with the bank’s vision of building a top-tier carbon trading and finance business operating across Africa.
KOKO’s CEO and co-founder, Greg Murray, praised RMB for its significant belief in the ability to utilise carbon in a manner that directly benefits the lives of African citizens.
Nigel Beck, the head of sustainable finance and ESG Advisory at RMB, said: “Working with KOKO will facilitate the development of the African carbon market and aligns closely with the Nairobi Declaration.”
The Nairobi Declaration, announced at the end of last year’s Africa Climate Summit in Kenya, outlines Africa’s strategic approach to using carbon to finance the continent’s transition to renewable energy and is central to Africa’s negotiating position at the COP28 climate summit.
