In a significant move towards sustainable energy solutions, Kenyan climate-tech startup KOKO has secured undisclosed funding from Rand Merchant Bank (RMB).
Charcoal Replacement with Bioethanol
KOKO addresses the demand for charcoal by providing bioethanol cooking fuel to over 1.1 million homes. This is achieved through an intricate network of high-tech KOKO Fuel ATMs strategically located in corner stores across urban Kenya. The bioethanol fuel not only offers a cleaner alternative but is distributed in a manner that empowers even the most economically disadvantaged households to make the switch.
Revolutionizing Carbon Financing
The unique aspect of KOKO's model lies in the generation of carbon revenues, a result of its climate-friendly approach. These revenues are shared directly with households, serving as a non-governmental energy subsidy. This innovative solution is a driving force behind KOKO's mission to create a positive impact on both the environment and the lives of the people it serves.
RMB's Strategic Role
Rand Merchant Bank, having previously acted as the lead mandated arranger and financier for KOKO's carbon financing solution, has taken a step further by making a direct investment in the startup. This investment not only solidifies RMB's commitment to KOKO's climate objectives but also marks a significant partnership in advancing sustainable energy solutions in Africa.
Long-Term Partnership for Accelerated Growth
Greg Murray, CEO, and co-founder of KOKO expressed the importance of finding a banking partner aligned with their vision. The partnership with RMB is positioned as a long-term collaboration aimed at accelerating KOKO's platform expansion across the African continent. This underlines the critical role that financial institutions can play in driving climate-conscious initiatives.
A Pan-African Carbon Trading Leader
Phil Norton, carbon finance lead at RMB, emphasized the pride in supporting KOKO's growth while bringing more affordable and lower emissions energy to millions. As a pan-African investment bank, Norton sees this deal as fitting seamlessly into RMB's ambition to establish a market-leading carbon trading and finance business operating across the continent.
KOKO's funding from RMB emerges as a beacon of hope for sustainable energy initiatives in Africa. The collaboration between a forward-thinking startup and a visionary financial institution signifies a broader shift towards environmentally conscious solutions.