BasiGo Secures Ksh.390 Million for Electric Buses Production in Kenya, Rwanda

BasiGo has secured $3 million (Ksh390 million) worth of equity funding for electric busses production in Kenya and Rwanda.

The funding was secured from CFAO Group (CFAO), a leading player in mobility, healthcare, consumer, infrastructure business in Africa.

CFAO is wholly owned by Toyota Tsusho Corporation in Japan.

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 buses in both countries.

BasiGi in Kigali

With operations in more than 40 African countries, CFAO owns Africa’s leading automotive distribution network.

The group is already active in the e-mobility industry in East Africa. Early this year, CFAO launched the first dealership for BYD electric cars in Kigali, Rwanda

They are actively building the e-Mobility ecosystem in East Africa by investing in e-mobility startup companies through Mobility54.

Also Read: Family Bank inks a 90% electric matatu financing deal with BasiGo

The group is also contributing to the development of renewable energies in Africa.

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

“We are honoured to have CFAO as our partner in the electrification of public transport in Africa,”

“As a leader in both the energy and mobility industry in Africa, CFAO recognizes the extraordinary opportunity for electric mobility to transform African economies,” said Mr Jit Bhattacharya, BasiGo Co-Founder and CEO.

Fist Electric Bus in Kenya

The investment from CFAO Kenya lends strong credibility to BasiGo, which 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 tonnes of greenhouse gas emissions.

“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 Akira Wada, the Managing Director of CFAO Kenya.

“We are committed to playing our part in advancing clean energy initiatives and driving progress towards a more sustainable and prosperous future for Africa and beyond.”

In February 2024, BasiGo completed production of their first locally assembled electric buses.

The vehicles were assembled at the Kenya Vehicle Manufacturers (KVM) factory located in Thika, in which CFAO Motor Kenya, an affiliate company of CFAO Kenya, holds a stake.

BasiGo aims to deliver 1,000 locally assembled electric buses in the next three years, creating 300 green manufacturing jobs in Kenya.

The company has already received over 500 reservations from bus operators in Nairobi and an additional 100 reservations from bus operators in Kigali, Rwanda.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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