Rand Merchant Bank (RMB) has announced a strategic partnership with KOKO
In a significant move towards combating climate change and promoting clean energy solutions, Rand Merchant Bank (RMB) has announced a strategic partnership with KOKO, a pioneering climate technology company. As the lead mandated arranger and financier, RMB has facilitated a groundbreaking carbon financing solution to propel KOKO’s climate objectives.
Africa faces a critical challenge, with over 900 million people relying on polluting fuels like charcoal for cooking. This practice drives deforestation and contributes to over 600,000 deaths annually due to household air pollution. Moreover, the emissions from such activities are comparable to those of the global aviation industry. A continent-wide energy transition towards cleaner and modern fuels is imperative to address this urgent issue.
KOKO stands at the forefront of this transition, actively working to replace the demand for charcoal. The company achieves this by supplying bioethanol cooking fuel to over 1.1 million homes through a network of advanced KOKO Fuel ATMs in thousands of corner stores across urban Kenya. The unique approach involves sharing carbon revenues with households as a non-governmental energy subsidy, making the switch to cleaner energy accessible even to the most economically disadvantaged families.
RMB’s Commitment to Africa’s Carbon Trading and Finance Business
Phil Norton, Carbon Finance Lead at RMB, expressed pride in the partnership with KOKO. He highlighted the bank’s commitment to supporting KOKO’s rapid growth and bringing affordable, low-emission energy to millions in Africa. As a pan-African investment bank, RMB sees this collaboration as a step towards building a market-leading carbon trading and finance business operating across the continent, serving existing and new clients.
Greg Murray, CEO & Co-Founder of KOKO, commended RMB’s firm conviction in harnessing carbon to transform lives in Africa. The partnership signifies a long-term commitment to accelerating KOKO’s platform expansion across the continent, addressing the pressing energy and environmental challenges.
Nigel Beck, Head of Sustainable Finance and ESG Advisory at RMB emphasized how partnering with KOKO aligns closely with the Nairobi Declaration. This declaration, presented at the Africa Climate Summit in Kenya, forms a crucial part of Africa’s strategy for financing the continent’s energy transition using carbon mechanisms. As Africa negotiates its position at the COP28 climate summit, RMB and KOKO’s collaboration is poised to contribute significantly to developing the African carbon market.
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