BasiGo – Practical Action

Investing in Impact

P4G has awarded the partnership with about US $348,000 in grant funding.

BasiGo’s PAYD leasing approach sets it apart from other e-bus players. This subscription-based model allows e-bus drivers to purchase an e-bus and pay a per-kilometer fee to lease the battery, charge and service the bus. This will lower the high upfront costs of ownership.

In this approach, bus operators lease e-buses by i) paying an affordable security deposit, and ii) paying an affordable per km lease fee that covers all the e-buses charging and service requirements. This fee is less than what owners currently pay for the financing charges, fuel and maintenance of diesel buses. It allows them to improve their internal rate of return and monthly net income.

BasiGo’s mission is to create the future of clean, electric public transport in Africa. It does this through an innovative financing and infrastructure deployment model that removes the capital constraints, and behavior change barriers to electric vehicle adoption in Nairobi, Kenya and the rest of SSA. BasiGo will ensure that environmental and social considerations are put at the forefront of its operations from its supply chain to customer onboarding and asset removal. By doing so, the partnership believes that it can increase its environmental and social impact, raise more capital, and accelerate the transition to green mobility in SSA.

It is cognisant that due to the nature of the business model, there are inherent Environment and Social (E&S) risks ranging from supply chain issues concerning materials sourcing and labor conditions in the production of e-buses, to road safety concerns during their operation that need to be measured and mitigated.

BasiGo is working on developing and implementing a comprehensive Environmental and Social Management System (ESMS) to achieve this. Central to the development of this plan is to align all its operations to comply with E&S standards required by development financial institutions and climate financiers. This includes adherence to transportation regulations, emissions benchmarks, waste management, financial reporting, labor laws and more. Such a system would help the business become more attractive to financiers and raise the investment it requires for scaling its model.

Practical Action brings deep expertise in environment and social governance and will support the partnership in establishing an ESMS system compliant with international standards and local regulations. The nonprofit will also develop and disseminate best practices that will empower other e-mobility businesses in the region. Additionally, it will lead on industry and stakeholder engagements.

The partnership plans on engaging with government bodies such as the National Transport and Safety Authority to improve EV regulations such as battery disposal standards, import policies and other bottlenecks that hamper the growth of the EV industry in Kenya.

In 2024, BasiGo launched its Road Safety Project and drafted a Terms of Reference in collaboration with Norfund. BasiGo also conducted a data collection trial that informed its ESMS, which is now finalized and ready for implementation, marking a key milestone in BasiGo's commitment to sustainability.

An ESG manager was hired to oversee the ESMS's data collection and monitoring, with plans to expand the ESG team in the coming quarters. BasiGo also joined the Kenya E-Mobility Battery Initiative to address the lifecycle management of end-of-life EV batteries, participating in a workshop hosted by the Africa E-Mobility Alliance.

BasiGo submitted a memorandum to the E-Mobility Taskforce, influencing Kenya’s national e-mobility policy with insights from 11 months of electric bus operations in Nairobi. This contribution was recognized in the Taskforce's interim report, and BasiGo will continue to engage in policy development.

Additionally, BasiGo, along with others in Kenya, advocated for an inclusive e-mobility tariff in a memorandum to Kenya Power Ltd, resulting in favorable new tariffs with appropriate Time of Use and no demand charge, though capped at 15,000 kWh per month. This will enhance e-mobility’s competitiveness within the transportation industry by lowering domestic electricity tariff charges, providing up to 22% in cost savings. 

BasiGo also hosted a tour for officials from the Ministry of Investment, Trade, and Industry at its local electric bus assembly plant, highlighting its progress and exploring potential government support for the e-mobility sector.

Finally, BasiGo has partnered with Kenya Vehicle Manufacturers to produce and deliver 1,000 electric buses between 2024-2027. 

During the P4G funding period, BasiGo aims to raise US $39 million in additional investment to scale its operations. It has delivered 19 buses in Nairobi and during the P4G funding period it aims to deliver 1,000 e-buses to cities in sub-Saharan Africa and will create more than 70 direct jobs. The larger number of e-buses on the roads will reduce or avoid 33,000 metric tons of carbon emissions.

The partnership comprises the following partners: BasiGo (lead business partner); Practical Action (lead administrative partner).