Mirova commits up to $10m to ARC Ride to drive low carbon mobility in Kenya

Natixis affiliate and sustainability specialist fund manager Mirova has made a commitment of up to $10m (€8.5m) in senior secured debt to ARC Ride, an electric mobility company in Kenya.

The transaction marks Mirova Gigaton Fund’s first electric-vehicles (EV) investment in Sub-Saharan Africa, supporting the large-scale deployment of electric two-wheel vehicles and battery-swapping infrastructure in Kenya.

The $10m facility is designed to fund over 600 battery-swapping cabinets and 25,000 batteries, structured as senior secured debt with a five-year tenor.

Mirova said the transaction leverages catalytic capital funding, in line with its blended finance approach to de-risk private capital. Mirova’s said its local presence in Nairobi was instrumental in sourcing and structuring the deal, “enabling close collaboration with ARC Ride and the broader Kenyan mobility ecosystem”.

The rise of EVs in Africa is a response to the growing need for sustainable and affordable transport, as consumers seek alternatives to gasoline-powered vehicles amid rising fuel prices, Mirova said.

The firm added that ARC Rides’ strategy aligns with two UN Sustainable Development Goals, SDG 13 – Climate Action and SDG 8 – Decent Work and Economic Growth. Each electric motorcycle deployed is estimated to reduce two tonnes of CO2 emissions annually, replacing internal combustion engine models and promoting clean energy in transport.

Joseph Hurst-Croft, CEO at ARC Ride, said: “This partnership with Mirova marks a major milestone in our mission to make electric mobility accessible, affordable and sustainable across Africa. 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.”

Rim Azirar, deputy head of emerging market energy transition at Mirova, added: “This investment reflects Mirova’s mission to support innovative, high-impact climate solutions in emerging markets. 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.”

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