EV Infrastructure Outcome-based financing instrument early-stage design
Aligned SDGs
- EV Infrastructure Outcome-based financing instrument early-stage design
- General overview
- Intervention
- Location
- Last data update
- Spreadsheet of data
- EV Infrastructure Outcome-based financing instrument early-stage design
- General overview
- Intervention
- Location
- Last data update
- Spreadsheet of data
General overview
Stage of development: Early stage
Policy sectors: Environment and climate change
Type of instrument: Impact Bond / Social Impact Guarantee
Delivery locations: Kenya
Country classification: Lower-middle-income
Intervention
Social or environmental challenge
"The mass adoption of 2-wheeler EVs is being restricted by the reach and scale of a suitable charging infrastructure. The relatively small 'start-up' EV companies currently in the market are looking to grow the sector independently, all pushing their own technology and charging solutions, with little interoperability across bikes or operators. This intrinsically limits the mass adoption of the technology.
Without a national charging infrastructure, rapid mass adoption will be challenging. The scale of finance required to deliver the right charging infrastructure, efficiently, and at the necessary scale, requires a single focus on the infrastructure component. This will not be achieved if left to start-ups, whose access to capital is limited.
The appetite for funding such a charging network exists, but it requires a coordinated strategy of deployment based on a bankable delivery mechanism. An appropriately designed outcome-based financing solution will provide the confidence to finance and deliver said strategy."
Description of the intervention
Longevity Development are looking to design and launch an OBF initially in Kenya that will then act as a catalyst to unlock billions of dollars of commercial infrastructure finance for the development of the urgently required charging infrastructure for the 2-wheeler motorbike sector, across the continent.
Unlike the 4-wheeler sector, the 2-wheeler market is well placed for rapid migration from combustion powered bikes to e-motorbikes. The prevalent buying behaviour (new purchases rather than second-hand, and vehicle lifespan of 2-5 years), means there is the potential to migrate the existing 12 million+ motorbikes, (forecast to double by 2030), to electric very quickly.
This will dramatically cut carbon emissions, significantly improving air quality, and the incomes and livelihoods of the millions of bike taxi riders who make up the vast majority of users on the continent.
Location
Country:
- Kenya
Locality:
- Kenya
Last data update
Data for this pipeline project was last updated in August 2023
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Spreadsheet of data
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