Rand Merchant Bank (RMB), a distinguished African corporate and investment bank, has taken a commendable stride in its commitment to advancing green energy and forest conservation across Africa. This commitment extends beyond sponsorship, as RMB has made a direct investment in the climate tech start-up, KOKO, as part of its broader carbon business growth project. This strategic move aligns seamlessly with RMB's dedication to propelling sustainable energy solutions on the continent.
KOKO, an innovative impact-investing start-up, is at the forefront of environmental consciousness, aiming to redefine cooking solutions in Africa. The core mission of the company is to introduce greener and more contemporary cooking alternatives, and this mission has received substantial support through RMB's recent investment.
CEO and co-founder of KOKO, Greg Murray, expresses the belief that RMB's investment showcases a profound commitment to leveraging carbon for the improvement of lives in Africa. This partnership is deemed crucial in driving the expansion of KOKO's platform across the continent.
Phil Norton, Carbon Finance Lead at RMB, takes pride in the collaboration with KOKO, emphasizing the shared goal of fostering rapid growth while providing affordable and low-emission energy to millions in Africa. This joint venture seamlessly aligns with RMB's broader objective of establishing a market-leading carbon trading and finance company to serve clients throughout Africa.
This strategic collaboration with KOKO closely aligns with The Nairobi Declaration, a recently unveiled strategic approach in Africa that leverages carbon to finance the continent's energy transition and nurtures the development of the African carbon market. Nigel Beck, Head of Sustainable Finance and ESG Advisory at RMB, emphasizes the significance of adhering to this strategic declaration.
The Nairobi Declaration, a pivotal element of Africa's negotiating posture at COP28 Dubai, plays a crucial role in steering the continent towards a sustainable energy transition. Rand Merchant Bank's support comes at a crucial juncture when carbon trading is gaining global momentum, and Africa stands to benefit from financing, which promotes long-term growth.
Charcoal remains a dominant fuel for cooking in urban Africa, as highlighted by the U.N. Food and Agriculture Organization (FAO). With over 900 million Africans relying on harmful fuels like charcoal, resulting in massive deforestation, indoor air pollution, and substantial greenhouse gas emissions, KOKO's mission takes on heightened importance. The transition to contemporary, clean fuels becomes imperative for the entire continent.
KOKO, with its pioneering approach, aims to replace unhealthy solid fuels across the continent with its renewable fuel dispenser. The start-up advocates for liquid bioethanol cooking fuel as a quick, safe, and cost-effective alternative to polluting cooking fuels like charcoal. The deployment of distribution, dispensing, and end-use technologies ensures that customers can access clean fuel at more affordable rates than polluting fuels.
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KOKO operates a micro-distribution network of fuel ATMs, providing liquid bioethanol cooking fuel to informal communities. Customers, using smart canisters, can conveniently obtain KOKO Fuel from a widespread network of 2,500 advanced KOKO Fuel ATMs situated in convenience stores throughout urban Kenya. The fuel is used in modern 2-burner cookers, producing a clean blue flame akin to cooking with gas. This renewable bioethanol cooking fuel is derived from sugar molasses. The coordination of payments, fuel distribution, and data is efficiently managed by KOKO Cloud, ensuring safety, quality, and excellent customer service.
Crucially, KOKO's reduction of carbon emissions aligns with global compliance and voluntary carbon markets. Revenues generated from the sale of high-quality carbon credits are shared with Kenyan households, serving as a non-government energy subsidy that makes the solution affordable even for the most impoverished individuals. This innovative approach is instrumental in driving KOKO's mission to create a positive impact on both the environment and the lives of the people it serves.
KOKO proudly claims to have served 1.1 million Kenyan households with bioethanol, and its pay-as-you-go fuel strategy aims to reduce dependency on polluting solid fuels. As a technology company founded in 2014, KOKO continues to expand its reach, currently serving approximately one million households across eight cities in Kenya. Supported by a robust regulatory framework and backing from the Government of Kenya, KOKO's bioethanol cooking fuel utility represents a transformative solution in service of the Kenyan people.
In 2021, KOKO received prestigious recognition as the world’s leading emerging markets climate technology solution by FT / IFC Transformational Business Awards. Additionally, being acknowledged as a "Lighthouse" project by the African Carbon Markets Initiative underscores the integrity of KOKO's business model.
KOKO's impact extends beyond its utility operations, directly employing 2,000 staff and supporting the incomes of an additional 15,000 Kenyan families involved in the bioethanol supply chain. The collaboration between KOKO and Rand Merchant Bank exemplifies a broader shift towards environmentally conscious solutions in Africa. This partnership not only supports KOKO's mission to revolutionize cooking solutions but also signifies a shared commitment to sustainable energy transition and forest conservation on the global stage.
Rand Merchant Bank's investment in KOKO serves as a testament to the potential impact when financial institutions join hands with innovative start-ups in driving positive change. Kenya, through initiatives like these, solidifies its position as a leader advocating for a shift to green energy on the global stage.