Paris-based sustainable investment manager Mirova has committed up to $10 million to Kenyan electric mobility startup ARC Ride, marking the Mirova Gigaton Fund’s first electric vehicle investment in Sub-Saharan Africa. The financing, structured as a five-year senior secured loan, will support the deployment of more than 600 battery-swapping cabinets and 25,000 batteries across Kenya. This move underscores the growing confidence of international investors in Africa’s electric two-wheeler market, a vital segment of urban transport and the gig economy.
Expanding Battery-Swapping Infrastructure
ARC Ride plans to use the new capital to strengthen its Battery-as-a-Service model, which enables riders to quickly exchange depleted batteries for charged ones. This approach lowers the initial cost of adopting electric motorcycles while reducing dependence on fluctuating fuel prices and mitigating range anxiety. The investment is also expected to speed up the deployment of clean transport alternatives in Nairobi and other major Kenyan cities, where motorcycles remain a central mode of mobility.
Leveraging Blended Finance for Growth
Mirova structured the transaction using its blended finance approach, combining catalytic capital to de-risk the investment and attract further private financing. The firm’s Nairobi office played a key role in sourcing and structuring the deal, highlighting the importance of local presence in driving climate-focused investments. For Mirova, which manages €33 billion in assets globally, the deal represents both a strategic expansion and a commitment to advancing climate solutions in emerging markets.
Tackling Economic and Environmental Challenges
Kenya’s motorcycle taxi sector, locally known as boda bodas, is critical for mobility and employment but has been heavily affected by rising fuel costs. ARC Ride’s model allows riders, many of whom are low-income gig workers, to save significantly on fuel and maintenance expenses. Each electric motorcycle deployed is estimated to reduce two tonnes of CO₂ emissions annually compared to internal combustion engine models, delivering both economic relief and environmental benefits.
Alignment with Global Sustainability Goals
ARC Ride’s strategy directly supports two United Nations Sustainable Development Goals: Climate Action (SDG 13) and Decent Work and Economic Growth (SDG 8). By enabling widespread access to electric motorcycles, the company contributes to cleaner cities and improved livelihoods for riders. Mirova emphasized that the collaboration reflects its mission to back innovative, high-impact projects that advance the global energy transition.
Leadership Perspectives
Joseph Hurst-Croft, CEO of ARC Ride, said the partnership is a milestone in scaling electric mobility solutions across Africa. He stressed that Mirova’s support will not only boost operations in Kenya but also pave the way for broader adoption of clean transport across the continent. Rim Azirar, Deputy Head of Emerging Market Energy Transition at Mirova, highlighted the startup’s scalable model, which she said combines emissions reduction with tangible social benefits.
Looking Ahead
The investment comes amid rising international interest in Africa’s e-mobility landscape, which is forecast to grow at a compound annual growth rate of more than 10.6% from 2025 to 2029. With supportive government policies, rapid urbanization, and falling technology costs, the sector is emerging as a significant opportunity for sustainable transport investment. By backing ARC Ride, Mirova positions itself at the forefront of Africa’s electric mobility shift while contributing to global climate and development goals.
Mirova’s $10 million commitment to ARC Ride reflects a turning point for electric mobility in Kenya and the wider African market. The deal integrates environmental sustainability with economic opportunity, addressing both climate change and income challenges in the transport sector. As ARC Ride expands its battery-swapping network, the partnership signals a broader transition toward accessible, affordable, and sustainable mobility across the continent.