Kenya Secures $250 Million from DFC for Digital and E-Mobility Projects

By : Hikmatu Bilali

Date : jeudi, 30 mai 2024 14:15

Last updated : jeudi, 30 mai 2024 14:19

Investments in digital sectors are vital for Africa's development, providing a blueprint for integrating digital and sustainable solutions to stimulate economic growth. Enhanced connectivity and e-mobility initiatives will create jobs, lower transaction costs, and improve access to services and markets, promoting sustainable development across the continent.

Kenya's digital and sustainable mobility sectors received a $250 million investment from the US International Development Finance Corporation (DFC) during President William Ruto's state visit to Washington, DFC announced on May 23.

“With this week’s announcements, DFC is doubling down on its commitments to Kenya’s development, with investments into energy, e-mobility, and infrastructure,” said DFC CEO Scott Nathan.

The financing, a mix of loans and grants, targets key Kenyan companies including M-KOPA, BasiGo, Mogo Auto, Roam Electric, and Pezesha Africa Limited.

M-KOPA secured $51 million to enhance digital connectivity and provide affordable smartphones, with plans to expand its production facility. Mogo Auto Kenya and BasiGo received $10 million each to support used vehicle loans and electric bus manufacturing. Roam Electric also received $10 million for electric vehicle development and charging infrastructure, while Pezesha was granted $500,000 to improve SME credit scoring algorithms using advanced technologies.

This move aligns with Kenya’s Digital Economy Blueprint, which aims for universal digital access and participation. The USAID Digital Ecosystem Country Assessment (DECA) 2020 highlights Kenya’s robust ICT infrastructure, with 95% of the population covered by 2G, 88% by 3G, and 61% by 4G, and plans for 5G rollout.

President Ruto’s visit to Washington emphasized strengthened US-Kenya relations and investments in digital and renewable energy. With support from the US government, DFC, and tech giants, Kenya is set for significant advancements in digital and sustainable energy sectors, driving technological growth, economic development, and job creation.

Hikmatu Bilali


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