The Future of Africa Is Electric: Investors Bet Big on Startups Leading the Charge for EVs

Electric vehicles (EVs) are rapidly transforming transportation across the globe, and Africa is not being left behind. The continent, historically burdened by carbon emissions and poor public transportation infrastructure, is now witnessing a growing shift towards e-mobility. As the world moves towards greener alternatives, several African startups are leading the charge in revolutionizing transport systems with electric vehicles, paving the way for a sustainable future.

One such standout in the EV sector is BasiGo, a Kenya-based startup launched in 2021. BasiGo is a trailblazer in the electric bus market, focusing on providing clean, efficient, and cost-effective public transportation solutions. The company recently raised a substantial $41.5 million in a Series A funding round, combining $24 million in equity and $17.5 million in debt funding. Major investors include Africa50, British International Investment (BII), and the U.S. Development Finance Corporation (DFC), signaling strong global confidence in Africa’s e-mobility future.

BasiGo’s focus on electric buses is particularly noteworthy. As of 2024, the startup has already made significant strides, with its electric buses transporting over 4 million passengers and cutting 1,175 tonnes of greenhouse gas emissions. This achievement underscores the potential for EVs to make a substantial environmental impact on the continent, particularly in cities like Nairobi, where public transportation is the backbone of daily commutes. Their pay-as-you-go model also helps bus operators transition to electric vehicles without the high upfront costs, making the adoption of electric buses more feasible for local businesses.

BasiGo isn’t alone in this EV revolution. Another key player, Roam Motors, a Kenyan electric mobility startup, raised $24 million in February 2024 to scale its operations. Roam, formerly known as Opibus, is known for producing electric motorcycles, buses, and even retrofitting existing vehicles with electric components. Their versatile approach to EV technology has positioned them as a key innovator in East Africa’s e-mobility sector. The recent funding allows Roam to further expand its manufacturing capabilities and continue building a robust EV infrastructure.

These startups reflect a broader trend of increased investment in African e-mobility solutions. Foreign investors are keenly interested in Africa’s potential to lead a green transport revolution. Institutions like BII, DFC, and Africa50 are pouring funds into these startups, recognizing the enormous opportunities for growth and environmental impact. This influx of capital is not just helping startups like BasiGo and Roam scale their operations but is also driving the development of critical infrastructure such as EV charging stations.

The establishment of EV charging stations is crucial for the widespread adoption of electric vehicles across Africa. Currently, infrastructure remains a significant barrier, with few charging points outside major cities. However, this is rapidly changing. In Kenya, BasiGo is working closely with local utility companies, like Kenya Power, to ensure a stable supply of electricity for charging stations, while planning to build more throughout East Africa. The Kenyan government’s e-mobility draft policy, launched in 2024, also emphasizes local manufacturing and the construction of EV stations, showing strong policy backing for the sector’s growth.

Beyond Kenya, South Africa is seeing its own EV boom. Startups like Rubicon Group, a renewable energy and electric vehicle supplier, have teamed up with global players such as Tesla to import and distribute EV charging stations. South Africa’s infrastructure is slowly evolving, with charging stations being developed in key urban centers to support the growing demand for electric vehicles. The country’s efforts to adopt cleaner energy solutions align with its broader goal of reducing carbon emissions and positioning itself as a leader in renewable energy on the continent.

In Nigeria, Max.ng, a mobility startup initially focused on motorcycle taxis, has now transitioned towards electric motorcycles and vehicles as part of its expansion strategy. Max.ng recently raised significant funding to develop electric motorcycles for Africa’s largest economy. With millions of motorcycle taxis operating daily in Nigeria, this shift to e-mobility could significantly reduce emissions in urban centers while providing a more affordable, efficient, and eco-friendly transport option for commuters.

The potential for electric vehicles to transform Africa’s transportation landscape is immense. The environmental benefits are clear, with the adoption of EVs promising significant reductions in carbon emissions. Additionally, the long-term cost savings for operators—whether in public transportation or ride-hailing services—could lead to lower fares and better service delivery. EVs also present opportunities for job creation, from manufacturing to the development of charging infrastructure, contributing to economic growth in countries that invest in this sector.

However, challenges remain. Africa still grapples with inadequate power supply in many regions, which could hamper the widespread deployment of EVs. Without a reliable electricity grid, scaling EV infrastructure will be difficult. Yet, startups like BasiGo, Roam Motors, and Max.ng are already thinking ahead, leveraging renewable energy sources like solar power to build more sustainable charging networks.

In the coming years, the success of the EV revolution in Africa will depend on the collaboration between governments, startups, and foreign investors. As funding pours into the continent and infrastructure projects begin to take shape, Africa is poised to become a hub for green transportation solutions, with electric vehicles playing a pivotal role in reducing emissions and reshaping how millions of people travel.

The future of transportation in Africa is undoubtedly electric. With continued investment, the growth of e-mobility startups, and strong policy support, the continent could leapfrog traditional fuel-based transportation and set the stage for a cleaner, more sustainable future.