BasiGo, a Kenyan startup that provides electric bus solutions, has received a US$5 million debt facility from British International Investment (BII), the UK’s development financing institution, for the delivery of 100 locally made electric buses.
Accelerating climate innovation in developing economies is the goal of the Climate Innovation Facility, a catalytic program run by BII.
Modern electric buses are now within reach of many bus operators because of BasiGo’s innovative financing approach, which lets them pay for the battery and charging independently from the bus itself in a pay-as-you-go method. The company also offers maintenance and charging services.
With BasiGo’s pay-as-you-drive financing strategy, bus operators may buy electric buses without paying the hefty price tag all at once. As a result, replacing Kenya’s antiquated diesel buses with state-of-the-art electric buses will require BII’s financial backing. Substituting BasiGo electric buses for diesel ones in Nairobi reduces annual CO₂ emissions by more than 50 tonnes.
“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. “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 a 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.”
Partnerships with companies like BasiGo, which are “at the frontier of tackling climate change,” are intriguing, according to Chris Chijiutomi, BII’s managing director and head of Africa.
“BasiGo is a leader; it’s revolutionizing public transport in Kenya with the potential to mitigate five 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,” Chijiutomi said.
To meet the ever-increasing demand from Kenyan bus operators, the newly-acquired funds will be utilized to expand the local production of electric buses.