Driving Africa’s Transport Future

Across African cities, a quiet mobility revolution is taking place. From electric motorcycles weaving through Kampala’s streets to solar-powered buses in Lagos and Kigali, new transport solutions are emerging that address not only climate change but also affordability, energy independence and air quality. The main obstacle, however, remains financing. This is where carbon finance comes in. By monetizing the emissions that are avoided when fossil-fuel trips are replaced with electric journeys, African innovators can unlock an entirely new source of capital.

Carbon finance is a mechanism that gives economic value to emission reductions. When a project reduces greenhouse gases compared to what would have happened without it, it generates carbon credits. Each credit corresponds to one ton of carbon dioxide avoided. Companies that have already reduced their own emissions but still have some residual footprint can purchase these credits to offset the remainder. For African e-mobility startups, this creates a reliable revenue stream that can bridge financing gaps and make ambitious projects possible.

Although Africa contributes less than four percent of global greenhouse gas emissions, it suffers some of the harshest impacts of climate change, from droughts and floods to food insecurity. At the same time, cities are growing fast, vehicle use is rising, and fossil fuel dependence is deepening. Cleaner mobility is no longer optional, it is essential. Yet the upfront cost of electric vehicles and charging networks often makes them inaccessible. Carbon finance can change this by channeling private capital into projects that would otherwise be too expensive to launch, while also helping governments meet their national climate commitments.

There are two main types of carbon markets. Compliance markets are regulated by governments or international agreements and are tied to legally binding emission reduction targets. Voluntary markets are where companies and individuals buy credits on their own initiative, often as part of sustainability commitments. For now, most African e-mobility projects participate in the voluntary market, certified under standards such as Verra or Gold Standard. But compliance markets are also opening up under the Paris Agreement’s Article 6, which allows countries to trade carbon reductions internationally. Several African countries, including Ghana, Kenya, Rwanda and Nigeria, are already preparing national frameworks and bilateral agreements that could benefit clean transport projects.

Electric buses, motorcycles and charging stations cut emissions by replacing diesel and petrol vehicles. To calculate the credits, project developers define a baseline scenario with conventional vehicles, measure the emissions of the electric alternatives and then quantify the difference. Certification under recognized standards ensures that the reductions are credible. Projects must also prove they are “additional,” meaning they would not have happened without carbon finance.

Examples already show the potential. In Kenya, BasiGo’s fleet of nineteen electric buses has driven over one million kilometers, carrying more than a million passengers while saving 500 tonnes of carbon dioxide and 190,000 liters of diesel. In Rwanda and Kenya, Ampersand estimates that each electric motorcycle saves between two and three tonnes of carbon dioxide annually compared to a petrol motorbike. Scaling to a fleet of a thousand bikes would avoid as much as 3,000 tonnes of emissions per year, generating meaningful revenue through carbon credits.

Once projects are certified, developers can sell their credits to companies seeking to offset emissions. African credits are increasingly attractive not only for the carbon savings but also for their co-benefits, such as cleaner air, job creation and improved energy access. These factors can raise their value on international markets. Developers often work with brokers or partners who connect them to buyers, while some governments are exploring domestic carbon pricing that could further support local initiatives.

The African Development Bank is pushing forward initiatives like the African Carbon Markets Initiative, which aims to generate 300 million credits annually by 2030. Startups such as BasiGo, Zeno Moto and Spiro are already pioneering electric transport models and preparing to align with carbon market standards. Governments including Kenya, Rwanda and Nigeria are integrating carbon finance into their climate strategies, while international partners such as the Swiss KliK Foundation and multilateral banks provide additional support.

Carbon finance has the power to transform e-mobility in Africa. By turning emission reductions into a tradable resource, it gives innovators access to the capital they need to expand fleets, build charging networks and improve urban mobility. The path is not without challenges—methodologies are complex and certification is costly—but momentum is growing. With the right partnerships and frameworks, Africa could become a leader in clean, low-carbon transport while simultaneously delivering economic and social benefits to its people.