CFAO Group invests $3 million in BasiGo to boost East Africa’s electric bus production

• Electric bus company, BasiGo has secured $3 million (Sh396 million) worth of equity funding from CFAO Group to scale up electric bus production in East Africa.
• The investment, split between CFAO Kenya and Mobility54, will help accelerate the scale-up of BasiGo’s manufacturing and delivery of electric buses in Kenya and Rwanda.
• CFAO Group is building e-mobility ecosystem in East Africa by investing in green mobility startups through Mobility54.

Electric bus company, BasiGo has secured $3 million (Sh396 million) worth of equity funding from CFAO Group to scale up electric bus production in East Africa. The investment, split between CFAO Kenya and Mobility54, the corporate venture capital arm of CFAO will go towards accelerating the scale-up of BasiGo’s manufacturing and delivery of electric buses in Kenya and Rwanda.

With operations in over 40 African countries, CFAO owns Africa’s leading automotive distribution network. The group is already active in the E-mobility industry in East Africa.

CFAO Group building e-mobility ecosystem in East Africa

Early this year, CFAO launched the first dealership for BYD electric cars in Kigali, Rwanda. The global automobile giant is actively building the E-Mobility ecosystem in East Africa by investing in E-mobility startup companies through Mobility54.

BasiGo aims to deliver 1,000 locally assembled electric buses in the next three years, creating 300 green manufacturing jobs in Kenya. The fresh round of financing will go towards the delivery of part of the 600 buses that the company has so far received reservations for.

According to the E-mobility firm it has already received over 500 reservations from bus operators in Nairobi and an additional 100 reservations from bus operators in Kigali, Rwanda. BasiGo Co-Founder and CEO Jit Bhattacharya, said that the funding is part of the firm’s African expansion plan.

“As a player in the energy and mobility industry in Africa, CFAO recognizes the extraordinary opportunity for electric mobility to transform African economies. With CFAO’s strength and experience in the mobility industry. Customers and operators can trust that BasiGo is ready to deliver competitive, high-quality E-Bus solutions at scale,” said Bhattacharya.

In February 2024, Toyota Tsusho Corporation, CFAO Kenya, and CFAO Motor Kenya jointly signed a Framework Agreement for Collaboration with the Government of Kenya, that has pledged to support Kenya achieve carbon neutrality by establishing the green energy value chain, from energy generation to utilization.

Electric Bus Production in East Africa

The investment from CFAO Kenya lends strong credibility to BasiGo, who in 2022 became the first company to launch electric buses for public transport in Kenya. As of this month, BasiGo’s electric buses in Kenya had driven over 1.5 million kilometers, carried over 2.1 million passengers and mitigated over 680 tons of greenhouse gas emissions.

In February 2024, the EV maker completed production of their first locally assembled electric buses.

“This is the start of a new era and through this investment, we are not only supporting the growth of the electric vehicle industry, but also contributing to the development of sustainable green energy value chain that will benefit communities across Africa,” said CFAO Kenya Managing Director Akira Wada.

As Africa embraces sustainable development goals, public electric transport is emerging as a transformative solution to urban mobility challenges. With a focus on reducing carbon emissions and enhancing accessibility, several African countries are making significant strides in adopting electric buses, trains, and other forms of mass transit.

In Kenya’s the government recently launched an ambitious plan to introduce electric buses. These buses are not only environmentally friendly but also promise to improve air quality in a city known for its traffic congestion and pollution.

The initiative aligns with Kenya’s commitment to the Paris Agreement and its national goals for sustainable development.

Read also: KCB partners with BasiGo Kenya to finance electric PSV buses

The Big Picture 

Similarly, in South Africa, electric buses are gaining traction in major cities like Johannesburg and Cape Town. The introduction of these zero-emission vehicles is part of broader efforts to modernize public transportation infrastructure and reduce the country’s carbon footprint.

By investing in electric buses, South Africa aims to create cleaner and more efficient urban transport systems.

Across the continent, other countries are also embracing electric mobility. Rwanda has launched an e-mobility program, including electric motorcycles and buses, to promote clean transportation solutions. In Nigeria, Lagos State has initiated pilot projects for electric buses, signaling a shift towards greener public transit options.

These developments are supported by advancements in battery technology, which are making electric vehicles more affordable and practical for mass adoption. Additionally, initiatives such as the African Union’s Agenda 2063 and the African Continental Free Trade Area (AfCFTA) are creating a conducive environment for sustainable transportation initiatives.

While challenges remain, such as infrastructure gaps and initial investment costs, the momentum towards public electric transport in Africa is undeniable. As more governments, businesses, and international partners commit to decarbonization and sustainable development, the continent is poised to lead the way in reimagining urban mobility for the 21st century.