Norwegian investment fund for developing countries, Norfund, has reaffirmed its support for Kenya’s e-mobility sector with an investment of $307 million, signifying Norfund’s commitment to fostering sustainable development and economic growth in the region.
During an official visit to Kenya, Norway’s Minister of Foreign Affairs, Espen Barth Eide, toured BasiGo’s Buruburu charging and servicing depot. “Our visit to BasiGo is a testament to Norway’s commitment to supporting Kenya’s growth through strategic investments. We are excited about the future possibilities that our continued partnerships can bring to the region and especially e-mobility,” Mr. Eide said.
The fossil fuel-powered transport sector stands as a major contributor to carbon emissions, and the transition to electric vehicles is seen as a sustainable solution to mitigate environmental degradation and combat climate change. BasiGo, a key player in Kenya’s e-mobility sector, has already deployed 24 electric buses with seven different bus operators in Nairobi. The company aims to deploy 1,000 locally assembled e-buses for Kenyan bus operators over the next three years. This will help reduce greenhouse gases and is expected to create 300 green manufacturing jobs in Kenya.
Currently, BasiGo has over 500 orders from Nairobi bus operators and an additional 100 reservations from bus operators in Kigali, Rwanda. “Together, we are not only fostering economic growth but also ensuring that we contribute to a safer and more sustainable public transport system in Kenya,” Chief Executive Officer (CEO) and Co-Founder of BasiGo, Jit Bhattacharya said.
Kenya holds a prominent position in Norfund’s development mandate and represents the largest country exposure within its portfolio. Since its inception, Norfund has been a key investor in Novastar’s funds and has committed $18 million (KSh 3.2 billion) across Novastar’s three funds, with a new fund launch planned for 2024.
“Trade between Norway and Kenya increased by 30 percent between 2021 and 2022, and the balance of trade is in Kenya’s favour. About 45 Norwegian companies are operating here – dealing with fertilizers and agritech, ICT, startups in different sectors, and renewable energy,” Mr. Eide added.
