CFAO Group, subsidiary of Toyota Tsusho Corporation, invests $3 Million into BasiGo for scale-up

https://thefounder.africa/cfao-group-invests-3-million-in-basigo-to-boost-east-africas-electric-bus-production/

BasiGo Co-Founders signing agreement with Akira Wada, Managing Director of CFAO Kenya

Empowering East Africa's Electric Mobility

BasiGo, a leading electric bus company, has secured a significant boost of $3 million (Sh396 million) in equity funding from the CFAO Group. This strategic investment aims to accelerate the production and delivery of electric buses in Kenya and Rwanda, marking a significant milestone in the region's transition towards sustainable transportation solutions.

CFAO Group's Commitment to E-Mobility

With operations spanning across 40 African countries, the CFAO Group boasts Africa's premier automotive distribution network. Recognizing the immense potential of e-mobility, CFAO has been actively investing in the sector, recently launching the first dealership for BYD electric cars in Kigali, Rwanda. Through Mobility54, its corporate venture capital arm, CFAO is dedicated to fostering the growth of e-mobility startups across East Africa, further solidifying its position as a key player in the region's green transportation revolution.

Scaling Up Electric Bus Production

BasiGo's ambitious goal is to deliver 1,000 locally assembled electric buses within the next three years, paving the way for a greener and more sustainable transportation ecosystem in Kenya and Rwanda. This initiative is expected to create 300 green manufacturing jobs, driving economic growth and fostering innovation in the region.

Meeting Growing Demand

The recent infusion of funding will enable BasiGo to meet the increasing demand for electric buses, with over 500 reservations already secured from bus operators in Nairobi and an additional 100 reservations from operators in Kigali, Rwanda. The company aims to fulfill part of the 600 buses that have been reserved, further solidifying its position as a leader in the electric mobility space.

A Vision for Sustainable Development

Jit Bhattacharya, Co-Founder and CEO of BasiGo, views this funding as a crucial step in the company's expansion strategy across Africa. "As a player in the energy and mobility industry in Africa, CFAO recognizes the extraordinary opportunity for electric mobility to transform African economies," said Bhattacharya, emphasizing the potential of e-mobility to drive sustainable development and economic prosperity across the continent.

Towards Carbon Neutrality

The investment in BasiGo aligns with broader efforts to achieve carbon neutrality in Kenya. In February 2024, Toyota Tsusho Corporation, CFAO Group, and CFAO Motor Kenya joined forces to establish a green energy value chain, aiming to support Kenya's transition to carbon neutrality. By promoting the adoption of electric vehicles and green energy solutions, these initiatives contribute to mitigating greenhouse gas emissions and promoting environmental sustainability.

Pioneering Green Transportation

BasiGo's electric buses have already made a significant impact, having driven over 1.5 million kilometers in Kenya, carried over 2.1 million passengers, and mitigated over 680 tons of greenhouse gas emissions. With the completion of their first locally assembled electric buses, BasiGo is poised to lead the charge towards a cleaner, greener future for transportation in East Africa.

Commitment to Sustainable Growth

Akira Wada, Managing Director of CFAO Kenya, emphasized the transformative potential of this investment, stating, "Through this investment, we are not only supporting the growth of the electric vehicle industry but also contributing to the development of a sustainable green energy value chain that will benefit communities across Africa." This commitment underscores the shared vision of BasiGo and CFAO Group to drive sustainable growth and prosperity across the region.