Electronic Bus solution provider BasiGo has secured $5 million (Ksh.765 million) debt facility from British International Investment (BII) for delivery of 100 electric buses in Kenya.
In a statement on Tuesday, December 5, BasiGo said the funding will be used to scale local assembly of electric buses in Kenya, establishing a new electric vehicle transport sector.
Besides, BasiGo has received over 350 deposits for Electric Buses from Nairobi bus operators.
“We are thrilled to receive this catalytic financial support from BII. It is a testament to our shared commitment towards building scalable climate solutions here within Africa,” said Jonathan Green, Co-founder, and Chief Financial Officer of BasiGo.
Boost for BasiGo
Further, the Company mentioned that the funding comes from BII’s Climate Innovation Facility, a catalytic program for accelerating climate innovation in emerging markets.
Additionally, the investment will be used to scale local assembly of electric buses to cater to the rapidly growing demand from bus operators in Kenya.
“The buses will be delivered through BasiGo’s innovative Pay-As-You-Drive financing model which enables bus operators to acquire electric buses without incurring the high upfront cost,” read the statement in part.
Consequently, BII’s financing support will be crucial in transitioning Kenya’s public transport from diesel-powered vehicles to modern electric buses.
Besides, BII investment in BasiGo is aligned with the vision of new Africa Green Industrialization Initiative (AGII) launched at COP28, to support the development of sustainable and resilient industries that can create jobs, reduce emissions, and enhance biodiversity.
“Because electric buses in Kenya are powered by the country’s abundance of renewable energy, electrification of public transport in Kenya holds transformative potential.
Electric buses promise freedom from fuel imports, cleaner air, modern and affordable transport for the general public, and significant impact in lowering transport CO2 emissions.
BII recognizes this opportunity, and their support for BasiGo will enable us to directly deliver on that promise,” added Jonathan Green.
Again, the CEO stated that each electric bus deployed in Nairobi in place of a diesel bus mitigates over 50 tonnes of CO2 emissions per year.
Also Read: Electric Startup BasiGo to Deliver 15 Buses to Nairobi PSV Operators
Addressing climate change in Africa
Furthermore, Chris Chijiutomi Managing Director, Head of Africa at BII said it is exciting to partner with businesses at the frontier of tackling climate change in Africa.
Also, Chijiutomi explained that the electronic bus providers are revolutionizing public transport in Kenya with the potential to mitigate 5 million tonnes of CO2 in Nairobi alone.
“BII’s Climate Innovation facility was designed to help scale impactful, cutting-edge technologies, with the potential to transform the lives of people and communities in Africa. We are delighted to partner with BasiGo via this facility,” he said.
Basigo Impact
Founded in 2021, BasiGo has led the introduction of electric buses into Nairobi’s public transport fleet.
In addition, it has deployed 19 Electric Buses to public transport operators in Nairobi, currently representing the largest fleet of electric buses in sub-Saharan Africa.
Also, BasiGo electric buses have driven over 1 million kilometers, carried over 1.2 million passengers, and mitigated approximately 500 Tonnes of CO2 since they began operations.
BII’s debt facility is the first of its kind supporting the electrification of the informal public transport sector in Sub-Saharan Africa. BII has existing indirect exposure to BasiGo through its investment in Novastar Fund II.
Also Read: BasiGo Partners with AVA for Electric Buses Assembly
The electric buses financed by this facility will be assembled locally in Kenya, establishing a new green manufacturing hub for modern electric vehicles.
Further, BasiGo first batch of locally assembled electric buses recently began production at Kenya Vehicle Manufacturers, one of country’s leading automotive assembly plants.
Also, the bus provider has already received over 350 deposits from bus operators in Nairobi looking to reserve the company’s first production units.
Again, it aims to deploy 1,000 locally assembled electric buses in East Africa in the next 3 years.
About BasiGo
BasiGo is an e-mobility company bringing the future of clean, electric public transport to sub-Saharan Africa.
Headquartered in Nairobi, Kenya, the company offers state-of-the-art electric buses along with charging and maintenance services for public service bus operators.
Additionally, the Company makes electric buses affordable to operators through an innovative financing model called “Pay-As-You-Drive”.
In 2022, it became the first company to introduce electric buses into passenger operations in Kenya.
