BasiGo – Practical Action
About
The BasiGo – Practical Action partnership will accelerate the transition to electric mobility in Kenya and the rest of sub-Saharan Africa (SSA) through a solution that integrates e-bus sourcing, charging & service infrastructure & expertise, and Pay-As-You-Drive (PAYD) financing. This multipronged solution addresses the barriers of e-bus adoption in SSA, allowing public bus operators to benefit from the e-bus’s lower total cost of ownership and reduced operational costs compared to internal combustion engine buses.
Investing in Impact
P4G has awarded the partnership with US $347,684 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 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 cognizant 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.
BasiGo aims to raise US $39 million in additional investment during the P4G funding period 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).
Partners
