BasiGo Secures $10M Investment from Ruto’s US Visit to Upgrade Kenya’s Public Transport

What’s this about?

• BasiGo, a Nairobi-based electric vehicle startup, secured a $10 million loan from the U.S. International Development Finance Corporation (DFC) to revolutionize public transport in Kenya by procuring and selling electric buses and batteries.
• The $10 million loan, part of a larger $250 million DFC financing package announced during President Ruto’s State Visit to Washington, D.C., aims to support Kenya’s climate goals and the Africa Green Industrialization Initiative.
• BasiGo has ambitious plans to roll out 1,000 electric buses across East Africa over the next three years, supported by additional investments from CFAO Group and British International Investment (BII).

Zoom in…

BasiGo, a Nairobi-based electric vehicle startup, has received $10 million to revolutionize Kenya’s public transport, as announced by the U.S. International Development Finance Corporation’s (DFC) Chief Executive Officer Scott Nathan.

BasiGo’s $10 million direct loan will facilitate the procurement of buses and batteries for sale in Kenya, supporting Kenya’s ambitious climate goals. BasiGo leases and sells electric buses to public transport bus operators in Kenya and Nathan says the loan will help advance e-mobility in Kenya, also in support of President Ruto’s Africa Green Industrialization Initiative, building upon DFC’s longstanding support for the e-mobility economy in Kenya.

The more than $250 million new DFC financing package, announced as part of President Ruto’s State Visit to Washington, D.C., includes several multimillion-dollar commitments for critical projects in Kenya, such as financing new, affordable student rental housing in Nairobi, bolstering digital connectivity throughout the country, and advancing e-mobility and renewable energy, building on longstanding DFC support.

Context

Last month, the firm announced it was poised to transform public transport across East Africa by rolling out 1,000 electric buses over the next three years. The firm also inaugurated its Electric Bus production line at the Kenya Vehicle Manufacturers plant in Thika, Kenya’s first specialized assembly line for modern Electric Buses. BasiGo has been assembling E9 Kubwa buses, tailored for Kenya’s PSV market and set to transform public transport in the country. The company has received over 500 orders from bus operators in Nairobi and 100 reservations from operators in Kigali, Rwanda.

In March 2024, the firm secured $3 million in equity funding from CFAO Group (CFAO), owned by Toyota Tsusho Corporation in Japan. The investment, split between CFAO Kenya and Mobility54, is aimed at ramping up BasiGo’s electric bus manufacturing and delivery in Kenya and Rwanda.

In December 2023, BasiGo secured $5 million from British International Investment (BII) through its Climate Innovation Facility to accelerate climate innovation in emerging markets. In addition to the BII funding, BasiGo received a $1.5 million grant from USAID for an Electric Bus Pilot Program in Rwanda. BII aims to see BasiGo transition Kenya’s public transport from diesel-powered vehicles to contemporary electric buses.

What they are saying…

“The U.S. and Kenya have strong ties that include a robust relationship with the private sector,” CEO Nathan said. “With this week’s announcements, DFC is doubling down on its commitments to Kenya’s development, with investments into energy, e-mobility, and infrastructure. DFC is also expanding its on-the-ground presence by opening an office to help us better pursue opportunities across the region.”

“We have proven that local assembly is viable and impactful. Now, we urge policymakers to create an enabling environment that fosters innovation, job creation, and economic growth. Together, we can chart a brighter future for mobility in Kenya and Africa,” Moses Nderitu, BasiGo Kenya’s Managing Director, said at the launch, emphasizing the need for a conducive environment for innovation, job creation, and economic development.

Source: techmoran.com

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