Development of GCF Funding Proposal with comprehensive Economic and Financial models

The project was aimed to accelerate and expand private sector investments in sustainable transport solutions in six (6) African countries with a total investment close to USD 600 million, with around 30% funding coming from the GCF and the rest being co-financed.

Objective

The client established the Green Mobility Facility for Africa (GMFA) with an overarching objective to advance green mobility in Africa by eliminating market barriers and providing support for low-emission public transport, specifically e-Bikes and e-Buses.

Our Approach

Research on E-Mobility Landscape

Conducted a focused research and analysis of the e-mobility landscape in African countries (Kenya, Morocco, Nigeria, Rwanda, Senegal, South Africa), specifically examining developments in e-Bikes and e-Buses covering existing deployments, stakeholders, business models, challenges, economics, others. Reviewed the client's market assessment study on e-mobility developments across all countries

Development of Economic and Financial Model

Developed a comprehensive financial model of both e-Bikes and e-Buses comparing two technologies, ICE with EV with analysis of payback period, IRR, NPV, LCoT and others. Developed a sensitivity analysis using macro to compare the financial outcomes of six countries under both conventional and GCF-supported loan conditions. This analysis not only facilitated a country-level comparison across various loan scenarios but also allowed for the inclusion of specific inputs tailored to each country's circumstances. Developed a model to analyze the impact of GHG emissions reduction and its potential economic costs.

Preparation of GCF Funding Proposal

Prepared the funding proposal report with justification of economic and financial analysis results of both technologies e-Bikes and e-Buses. The report also explained the sensitivity analysis, combining GCF and AfDB debt contributions and interest rates, to highlight the advantages of GCF loans. Conducted a thorough review of the entire GCF funding proposal and provided some inputs for robust submission

Outcome

This unique GCF project in e-mobility across multiple countries and technologies has a dual objective: providing technical assistance (TA) for supportive enabling conditions and making capital investments, including concessional loans, to promote sustainable technology adoption in African nations. It is anticipated that this project will accelerate the rapid growth in the e-Mobility market in these countries.

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