BasiGo secures $42mn to accelerate electric bus expansion across East Africa

BasiGo, a leading electric bus provider in sub-Saharan Africa, has recently secured $42 million in new capital, comprising $24 million in Series A equity and $17.5 million in debt. The Series A funding, spearheaded by Africa50 and with co-investments from Novastar Ventures, CFAO Kenya, Mobility54, and others, unlocks debt facilities from the U.S. Development Finance Corporation and British International Investment, enabling BasiGo to scale up its E-bus deployments in Kenya and Rwanda. In a recent interview with CNBC Africa, Jit Bhattacharya, the CEO of BasiGo, shed light on the significance of this funding and the impact it will have on the company's operations and expansion plans in East Africa. The funding will allow BasiGo to expedite the deployment of electric buses in the region, enhancing sustainable public transport options and reducing carbon emissions substantially. With over 800 reservations from private bus operators in Kenya and Rwanda, BasiGo is poised to revolutionize the public transport sector with its innovative pay-as-you-drive model, making electric buses more accessible and affordable for operators. The company plans to deploy 1,000 buses over the next three years, accompanied by the establishment of 400 charging stations and robust service and maintenance infrastructure. The CEO highlighted the cost-effectiveness of electric buses compared to diesel counterparts, emphasizing the substantial savings in fuel costs and the potential for high returns on investment for stakeholders. The interview also delved into the regulatory landscape and the role of government policies in fostering the growth of e-mobility in East Africa. Bhattacharya commended the efforts of governments in Kenya and Rwanda to incentivize electric vehicle adoption through measures such as preferential electricity prices and tax incentives. By leveraging domestically generated electricity for public transport, Bhattacharya outlined the economic benefits of reducing fuel imports and bolstering foreign currency reserves. Additionally, the discussion touched on the passenger experience and the modernization of public transport through digital tools and enhanced amenities on electric buses. BasiGo's focus on improving the overall passenger experience, coupled with innovative technologies like pre-booking apps, aims to offer a seamless and sustainable transport solution in the region. As BasiGo embarks on its ambitious expansion plans, the company is well-positioned to drive the transition towards greener and more efficient public transport options in East Africa.