Norfund, the Norwegian government’s investment fund for developing countries, has pledged a substantial $307 million(Ksh 39,679,750,000) to support Kenya’s growing electric mobility (e-mobility) sector.

This strategic move signifies a significant leap forward in Kenya’s journey towards a cleaner transportation system and a more sustainable future.

Combating Climate Change, One Electric Bus at a Time

The investment is more than just a financial boost; it’s a testament to the growing global recognition of e-mobility’s role in combating climate change.

Transportation is a major contributor to greenhouse gas emissions, and Kenya’s transition away from traditional gasoline and diesel vehicles paves the way for a significant reduction in its carbon footprint.

This aligns perfectly with Norway’s own commitment to environmental sustainability, solidifying a strong partnership between the two nations.

Beyond Money: A Collaborative Effort

The partnership extends beyond just the financial commitment. A recent visit by Norway’s Foreign Minister, Espen Barth Eide, further underscored this collaboration.

His tour of BasiGo’s Buruburu charging and servicing depot, a critical player in Kenya’s e-mobility landscape, sent a powerful message of support for the sector.

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BasiGo: A Local Leader in the E-Mobility Charge

BasiGo, a Kenyan company at the forefront of the e-mobility revolution, is expected to be a major beneficiary of Norfund’s investment. Their ambitious plans to deploy 1,000 locally assembled electric buses over the next three years will not only transform public transportation but also create a significant economic impact.

This initiative is estimated to generate 300 green manufacturing jobs, foster local expertise, and boost the Kenyan economy.

BasiGo’s success is already evident. With over 500 confirmed orders from Nairobi bus operators and an additional 100 reservations from Kigali, Rwanda, they are experiencing a surge in demand. This growing interest highlights the increasing awareness and adoption of sustainable transportation solutions in the region.

Norfund: A History of Impactful Investment

Norfund isn’t just throwing money at a problem; they’re investing in the future. With a proven track record of supporting development in East Africa, Norfund prioritises creating jobs, improving lives, and promoting a sustainable future.

Their diverse investment portfolio includes renewable energy, financial inclusion, scalable enterprises, and green infrastructure. They strategically select countries where their expertise and resources can create the most significant impact.

A Global Investment Leader with Deep African Roots

Norfund is a leading investment fund for developing countries, with over 20 years of experience, specifically in East Africa. They focus on 30 core countries, including Kenya, Uganda, Tanzania, Rwanda, Cameroon, and Ethiopia, where they have built strong relationships and a deep understanding of the local landscape.

This targeted approach allows them to effectively deploy their resources and maximise their impact. While their primary focus is on Sub-Saharan Africa, Norfund also partners with other investors to support development projects in select countries like Somaliland, Southern Sudan, the DRC, and Burundi.

Looking beyond East Africa, Norfund’s commitment to development is evident in their impressive 2023 investment figures. Despite a global decline in foreign direct investments, Norfund reached a record-breaking NOK 6.5 billion(Ksh 78,723,913,125) with over half (51%) directed towards African projects.

This achievement highlights their dedication to driving positive change, particularly in high-risk environments where private investors might be hesitant.

Norfund’s impact extends beyond headline figures. Their investment strategy goes beyond simply providing capital. By taking direct ownership of companies and facilitating access to energy and financial resources, they empower local businesses and communities to achieve sustainable growth. This focus on long-term development is a cornerstone of Norfund’s philosophy.

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A Win-Win for Kenya and the Environment

This $307 million investment is a win-win for both Kenya and the environment. It will drive Kenya’s e-mobility sector forward, creating a cleaner and healthier future for all Kenyans.

The collaboration between Norway and Kenya serves as an inspiring example of how international partnerships can drive positive change and pave the way for a more sustainable future for all.

This investment is not just about electric buses; it’s about cleaner air, a greener Kenya, and a collaborative effort to combat climate change on a global scale.