This funding comprises $24 million in Series A equity and $17.5 million in debt facilities from British International Investment (BII) and the U.S. Development Finance Corporation (DFC).

The equity round was led by Africa50, a pan-African infrastructure investor, representing the largest investment from an African fund into an e-mobility company.

Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation are co-investors in this round.

This investment unlocks a $10 million debt facility from DFC to support BasiGo’s operations in Kenya and an additional $7.5 million debt facility from BII to scale the company’s electric bus deployment in Rwanda.

Jit Bhattacharya, CEO of BasiGo, expressed enthusiasm for the investment, stating:

“Our mission since 2021 has been to transform public transport in Africa through clean, electric solutions. Africa50’s recognition of our potential and the combined equity and debt investment validates our business model. With BII’s backing, we are poised to expand our electric bus model across East Africa.”

The newly acquired capital will help BasiGo achieve its goal of delivering 1,000 electric buses to East Africa over the next three years.

In Kenya, the funds will be used to boost production at BasiGo’s E-Bus assembly line at Kenya Vehicle Manufacturers, expand the Pay-As-You-Drive service, and enhance the company’s technology platforms, including Jani, which aims to improve passengers’ access to electric buses.

Raza Hasnani, Managing Director at Africa50, highlighted the importance of the investment, saying:

“BasiGo is positioned to scale across East Africa and beyond. This investment supports the greening of public transport in Kenya and Rwanda, fostering sustainable development in the region.”

Novastar Ventures Managing Partner, Steve Beck, emphasized the team’s progress, noting:

“This funding round demonstrates strong investor confidence in BasiGo’s business model and value proposition, as the company leads the way in sustainable transportation across Africa.”

In late 2023, BasiGo expanded into Rwanda, where six pilot electric buses are already in operation, and over 300 reservations have been made by local bus operators.

The $7.5 million debt facility from BII will facilitate the commercial deployment of electric buses in Rwanda, furthering the company’s commitment to electrifying public transport across East Africa.

Seema Dhanani, BII’s Head of Office in Kenya, remarked:

“BII is proud to support BasiGo’s expansion into Rwanda. This effort aligns with our mission to foster sustainable economic growth by reducing pollution and addressing climate change.”

This innovative program aims to boost economic growth and job creation.

It serves as a collaborative platform for financial and non-financial partners, including Nigeria’s Ministry of Finance, the Nigeria Sovereign Investment Authority (NSIA), and the Development Bank of Nigeria (DBN).

In addition to the AfDB’s contribution, DBN and NSIA will provide $25 million and $5 million, respectively.

The initiative is divided into two key components.

The first involves setting up the YEIB Investment Management Company, which will oversee three special-purpose vehicles: the Equity Investment Fund (EIF), the Ecosystem Development Fund (EDF), and the Credit Guarantee Facility (CGF).

These vehicles will provide financial aid, grants, and risk management support for youth and women-led businesses.

The second component focuses on equipping young entrepreneurs with the services needed to turn their ideas into viable businesses, addressing challenges such as youth unemployment and gender inequality.

The project is expected to create more than 161,000 direct jobs, 40% of which will be allocated to women, and 1.4 million indirect jobs, 35% of which will benefit women.

Additionally, over 38,000 youth-led enterprises will receive both financial and non-financial support, with 40% of the beneficiaries being women.

Dr. Abdul Kamara, AfDB’s Director General for Nigeria, highlighted the initiative’s potential to bridge gender gaps and promote entrepreneurship.

This is the third YEIB initiative approved by AfDB, following similar programs in Liberia and Ethiopia.