Vehicle Electrification Fund Africa
(for informational purposes only)
There is a pressing need for vehicle electrification, globally
Vehicular emissions are accelelerating climate change
Particulate matter emitted from road vehicles causes millions of premature deaths worldwide
As cities grow, there is increasing demand for attractive and affordable mobility options
However, vehicle electrification projects are typically faced with two major challenges:
High upfront costs of vehicles and charging infrastructure
Technology uncertainty and unreliable electricity grids
The Vehicle Elecrification Fund Africa (VEFA) addresses these challenges by providing operators of goods and passenger-transport fleets with electric vehicles and vehicle-charging solutions as-a-service.
Why Africa?
The geographic focus of this fund is Southern and Sub-Saharan Africa, where at least 60% of our funds will be deployed. The balance will be deployed in OECD countries.
Africa provides a compelling investment case from both an impact and commercial standpoint:
- Africa is the most rapidly urbanizing continent, driving demand for affordable low-emission and less polluting transport where existing infrastructure is still severely under-developed. An Africa focus is therefore an opportunity to avoid scaling high-carbon alternatives, and to leapfrog to more affordable business models, and low-emission solutions;
- An African and second-stage European focus will support accelerated delivery of EU policy, and for the index to benefit from synergies with European Institutions. The European Union has placed a priority on accelerating low-carbon transport in addressing the energy transition in the EU, has placed a priority in developing the hydrogen economy, and has placed a strategic priority on supporting Sub-Saharan and North Africa in implementing low carbon energy solutions.
What makes the fund unique?
VEFA is the only fund exclusively focused on African low-carbon climate resilient road vehicle charging infrastructure
VEFA is the only fund that addresses the barriers to vehicle electrification via a systems approach, including an innovative financing model, as well as an innovative and proven technology approach
VEFA is amongst the first funds to be certified compatible with the SDGs (via partnership with the Gold Standard Foundation)
VEFA pioneers a development and investment model for scaling climate mitigation, health and SDG impact through electrification of vehicles, with the potential to be replicated and scaled globally