The Green Mobility Financing Facility for Africa (GMFA), an African Development Bank-led initiative, is set to scale up its operations following a $13.46 million funding approval from the Global Environment Facility (GEF) on 18 June 2026. GMFA catalyses private investment in green mobility systems through blended finance and credit enhancement instruments, including concessional debt and senior debt, complemented by technical assistance. The newly approved package combines a $12.46 million concessional loan with a $1 million technical assistance grant to support the development of efficient, low-emission public transport systems and contribute to the reduction of greenhouse gas emissions across Africa.
Africa’s urban population is expected to double by 2050, increasing demand for public transport and last-mile mobility solutions while intensifying challenges related to air pollution, congestion and climate change. Yet investment in electric mobility remains fragmented and largely confined to pilot initiatives, hindered by high upfront costs, perceived technology risks, limited access to long-term financing and insufficient market readiness.
The newly approved GEF funding will support the operationalisation of the facility and help unlock larger pools of public and private capital for sustainable transport investments. The facility will support a range of green mobility technologies, including electric buses, electric two- and three-wheelers, renewable-energy-powered charging infrastructure, battery swapping stations and electric vehicle manufacturing.
The African Development Bank unveiled the Green Mobility Financing Facility for Africa during the 2026 Global Environment Facility Integrated Programs Forum, held in Nairobi in mid-April, showcasing it as a practical example of how blended finance can help unlock private sector investment for climate action. “Rapid urbanisation will double Africa’s urban population by 2050, increasing demand for public transport and climate pressures,” African Development Bank Group Climate Finance Expert Komal Hassamal said during the Forum.
“E-mobility remains fragmented and pilot-based, constrained by high upfront costs, risk perceptions and limited long-term financing. What is needed is structured blended finance to scale private investment, alongside policy and market readiness support from the GEF and partners.”
Building on the GEF’s catalytic support, the African Development Bank is mobilising additional resources from its own financing windows and development partners to make an investment of at least $169 scale investment in sustainable transport solutions across Africa. The programme is also being supported through partnerships with several international climate and development finance mechanisms, including KOAFEC, the Sustainable Energy Fund for Africa, and the Fund for African Private Sector Assistance . These resources will help strengthen policy and regulatory frameworks, prepare projects, develop business models and build the pipeline required for future investments.
