Mauto, the leading electric two-wheeler in Africa, has announced the first closing of a $5 million transaction in the voluntary carbon offset market.
The funding agreement with Aera, Africa's leading carbon credit trader, and myclimate, a Swiss firm, is expected to be spread over the next three years.
African countries, including Rwanda, have recently laid out plans of leveraging the market scheme of trading carbon credits.
Carbon credits are given to entities that reduce carbon emissions extensively beyond the required levels and sell them to those unable to meet their reduction requirements in other organizations or countries.
"There are effective ways to finance the ecological transition in Africa and to make it affordable and sustainable. No population will accept this without strong support. That’s the whole point of this operation ", said Shegun Adjadi Bakari, CEO of MAUTO.
The signing of this $5 million deal, also the largest in Africa in terms of carbon credits for electric mobility - will help to immediately meet the continent's commitments to a sustainable energy transition.
"This agreement is proof that Africa is in an offensive position on energy transition and that industrial players are ready for innovative partnerships ", Bakari added.
The deal covers the reduction of emissions generated by MAUTO, which plans to deploy over 2 million electric motorbikes in Africa by 2030.
The firm says it will also roll out its brand in Rwanda, before the end of the year.
Currently, Mauto operates in Benin and Togo with 2,700 electric motorbikes on the road. "By 2030, the aim is to be operational in over ten countries across Africa.”
The closing of this $5 million transaction, while accelerating the deployment of electric two-wheelers in Africa, will also address the challenge of electrification, the statement added.
Approximately 80 percent of the electricity that will be used to charge the electric vehicles will come from photovoltaic charging stations that will be installed as the roll-out progresses.