Bus operators in Africa embrace EVs

November 27, 2024

From the newsletter

BasiGo, a Kenyan e-bus company, yesterday delivered two electric buses to Rembo Classic Sacco. This delivery comes just a month after BasiGo supplied four e-buses to Latema Sacco. The company has been focusing on bus operators as its primary customers, with a goal of deploying 1,000 e-buses in Kenya within the next three years.

  • BasiGo has been operating since 2020 in Kenya and expanded in 2023 to Rwanda. It has supplied 30 electric buses to the Kenyan market to date, primarily to bus operators.

  • Last month, BasiGo raised $42 million in debt and equity, which it plans to use to expand its production. It aims to deploy 50 buses by the end of 2024, followed by 200 more in the next year.

More details

  • BasiGo began by importing electric buses but now assembles them locally at Kenya Vehicle Manufacturers. The company aims to source 30% of all bus inputs locally. 

  • The company has been mainly selling its e-buses to bus operators. Some of the bus companies that have acquired BasiGo's e-buses include Embassava Sacco (4), Metro Trans (8), Rembo Classic (2), Latema Sacco (4), and Kenya Bus Service (1). BasiGo has over 500 reservations from bus operators with deposits and commitments.

  • Another bus manufacturing company, Roam, signed a deal with a bus operator, County Bus Service, to supply 10 e-buses by the end of 2024 and aims to supply 200 by 2026.

  • This partnership between bus operators and vehicle manufacturing companies to supply electric vehicles is a common trend across Africa, though the approach differs. In some countries like Kenya and Uganda, bus operators source from local manufacturers, while in others like South Africa, they source from overseas, mainly from China. Bus operators are leading adopters of e-buses in the region.

  • In South Africa, one of the leading bus companies, Golden Arrow, in July 2024, partnered with BYD for the supply of 120 electric buses. These buses will be delivered in phases, starting from the fourth quarter of 2024 with the first batch received yesterday and continuing through to the fourth quarter of 2025. This significant order follows a trial period during which Golden Arrow acquired its first BYD bus in 2022 for testing purposes, and subsequently added three more by 2024. Golden Arrow has a fleet of 1,100 fuel-powered buses and plans to completely switch to EVs.

  • In Uganda, bus operators rely on Kiira Motors, a state-owned e-bus manufacturer. E-Bus Express recently acquired several buses from Kiira Motors to serve Jinja City and its connecting towns. To date, Kiira Motors has produced over 27 e-buses, with the majority sold to bus operators and government parastatals.

  • In Rwanda, IZI, which imports e-buses, and BasiGo, which assembles e-buses in Kenya, have secured over 200 and 100 reservations from bus operators, respectively. IZI has partnered with Kigali Bus Services to supply them with e-buses. BasiGo partnered with AC Mobility and planned to supply 200 e-buses by the end of 2024 but has managed to deliver only 6 e-buses so far.

  • In Egypt, Mwasalat Misr, a public transport company that operates in Cairo and Alexandria, partnered with Foton Motor to deploy a fleet of electric buses. They are starting with 100 buses, with plans for further expansion. The Alexandria Transport Authority started with a pilot of 15 BYD buses. Currently, most of the Egyptian e-bus movement is shifting to local production with the launch of the renovated El Nasr Automotive Company, which aims to produce 300 buses annually.

  • In Ethiopia, Nigeria, Ghana, and Senegal, the governments are leading the way in embracing e-buses for public transportation. Ethiopia's government piloted 30 electric buses in Addis Ababa. Nigeria wants to deploy 100 e-buses in Lagos. Ghana plans to deploy 100 buses by the end of 2024 and received the first batch yesterday. Senegal introduced 121 electric buses for its public transport network.

Our take

  • Bus operators have the financial resources and established credit histories necessary to secure financing for electric bus adoption. Their stable operations and predictable revenue streams make them attractive borrowers with low-risk profiles, which is why bus manufacturers view them as a safe target market with high potential for e-bus adoption.

  • In addition, the economics of e-buses favour bus operators. The total cost of ownership is lower due to reduced fuel and maintenance expenses. Their fixed routes make it easy to establish charging infrastructure along existing operational schedules. This allows for convenient charging during operation and minimising service disruptions.

  • The majority of Africans rely on public transportation for their daily commutes. The affordability of e-buses, coupled with potential operational savings, can translate to competitive fares, making them an appealing option for passengers.