Mirova, an affiliate of Natixis Investment Managers, has committed up to $10 million in senior secured debt to ARC Ride, the Nairobi-based electric mobility operator. The financing—structured with a five-year tenor—marks the Mirova Gigaton Fund’s first EV investment in sub-Saharan Africa and is aimed squarely at scaling the backbone of two-wheeler electrification: battery-swapping.
A couple of weeks ago, British International Investment (BII), the UK’s development finance institution, announced a $5 million investment in ARC Ride.
The facility will finance more than 600 battery-swapping cabinets and 25,000 batteries, expanding ARC Ride’s network across Kenyan cities where motorcycle taxis, delivery riders, and other light-mobility users dominate last-mile transport. Rather than waiting for a vehicle to charge, riders swap depleted batteries for charged ones in minutes, slashing downtime and making electric two-wheelers (E2Ws) a practical and cost-competitive alternative to internal combustion motorcycles.
For ARC Ride, the capital provides the muscle to shift from pilots to large-scale deployment. “This partnership with Mirova marks a major milestone in our mission to make electric mobility accessible, affordable, and sustainable across Africa,” said Joseph Hurst-Croft, ARC Ride’s CEO. “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 in Africa.”
Mirova’s decision is as much about market design as it is about hardware. The Gigaton Fund uses blended finance to crowd in private capital, and this transaction leverages catalytic funding to de-risk scale-up in an emerging sector. Mirova’s local presence in Nairobi was instrumental in sourcing and structuring the deal, tightening alignment with ARC Ride and the broader Kenyan mobility ecosystem—from regulators and utilities to suppliers and service partners. “ARC Ride is redefining urban mobility in Africa through a scalable model that reduces emissions and improves livelihoods. We’re proud to support their journey,” said Rim Azirar, deputy head of emerging market energy transition at Mirova.
The timing is favorable. Africa’s EV market is set for a compound annual growth rate above 10.6% between 2025 and 2029, underpinned by rapid urbanization, falling battery costs, and policy incentives that encourage cleaner fleets. In Kenya, where fuel prices have strained household budgets and micro-entrepreneurs depend on daily cash flow, the economics of E2Ws are increasingly compelling. Riders can save substantially on “fuel” (electricity) and maintenance, while operators gain higher asset utilization through swapping networks that keep bikes on the road.
ARC Ride’s impact thesis dovetails with SDG 13 (Climate Action) and SDG 8 (Decent Work and Economic Growth). Each electric motorcycle deployed is estimated to avoid around 2 tonnes of CO₂ per year compared with a comparable internal-combustion bike. At the same time, lower operating costs and predictable energy pricing help Kenya’s largely low-income rider base improve take-home earnings and business resilience—turning climate action into everyday economic relief.
Crucially, the deal signals maturation in Africa’s e-mobility infrastructure. Financing the “picks and shovels”—batteries, cabinets, and the software that orchestrates them—can unlock adoption at city scale. As swapping density increases, rider confidence rises, payback periods shorten, and lenders grow more comfortable underwriting the asset class. That positive feedback loop is exactly what blended-finance vehicles like Mirova’s aim to catalyze.
“This investment reflects Mirova’s mission to support innovative, high-impact climate solutions in emerging markets,” Azirar noted. If ARC Ride executes, Kenya could become a template for neighboring markets—demonstrating that when capital meets the right operating model, Africa’s busiest transport segment can electrify faster than expected.
