Kenyan electric bus maker goes to Rwanda in expansion drive
Sunday July 30 2023
A staff member from BasiGo directs an electric bus into a charging station in Nairobi, Kenya, on June 2, 2023. PHOTO | XINHUA
Kenyan manufacturer of electric buses BasiGo has announced entry into Rwanda in its first expansion outside Nairobi, reflecting increasing push for adoption of e-mobility in public transport in the region.
BasiGo, through a partnership with Kigali-based automated fare collection service provider AC Mobility, will deploy the same business model of deferred payment for the e-buses that fuelled its growth in Kenya.
The Pay-As-You-Drive financing model is expected to make the buses more affordable for operators, who often opt for fossil fuel combustion buses which are comparatively cheaper.
Read: Kenya Power to pilot transition to electric vehicles
In a statement on Wednesday, BasiGo said it has already signed letters of intent with three of Rwanda’s public transport bus operators – Kigali Bus Services, Royal Express and Volcano Express.
Greening public sector
BasiGo’s CEO Jit Bhattacharya said the entry into Rwanda will bolster the country’s drive to green its public transport sector.
“Electric buses will bring bus operators freedom from rising fuel prices while also dramatically reducing air pollution and CO2 emissions,” Bhattacharya said.
“The country has recorded rapid transformation, creating a need for a more robust and cost-effective public transport system,” said Jones Kizihira, CEO of AC Mobility.
Rwanda targets to have at least 20 percent of all public transport buses to be electric by 2030, a move projected to help avoid 72,000 tonnes of carbon dioxide equivalents.
Read: Why e-mobility could make or break EA economies
Last month, the Rwandan government entered an agreement with Vivo Energy and the Rwanda Social Security Board for the supply of more than 200 electric buses.
The World Bank has warned that continued reliance on fossil fuel combustion vehicles holds several risks for economies. According to the World Bank, transitioning to e-mobility will ease the forex pressures associated with oil importation, and protect export markets as the world’s leading importers begin checking carbon footprint across their supply chains.
Tax incentives
To support uptake of electric vehicles, governments in the region have been giving concessions and tax incentives to e-mobility companies, while discouraging fossil fuel use through tax disincentives.
Rwanda’s Ministry of Infrastructure in April 2021 proposed a preferential corporate income tax of 15 percent, half the usual 30 percent, for companies dealing in e-mobility, a concession that will favour BasiGo and other companies scrambling for the e-mobility market in Rwanda like Ampersand, Rwanda Electric Motorcycle, VW Mobility Solutions and Victoria Autofast.
Rwandat has made it clear that it “welcomes investors looking to contribute to the country’s transition to green mobility” in a document on the Ministry of Environment’s website.
Read: Tanzania takes lead in EA's e-mobility race
In Nairobi, BasiGo has so far supplied 19 e-buses to public service operators since its establishment in 2021, with over 100 reservations already made and development ongoing.