BasiGo Says Costa Rica Models Cost-Saving Bus Shift in Africa
In costa rica, BasiGo says electric buses are becoming the most immediate and scalable way for African cities to move transport away from imported diesel and onto domestic electricity. Dorcus Kamotho-Mureithi, BasiGo’s head of communication, said higher fuel prices, weaker currencies, and rising inflation are already hitting cities such as Nairobi and Johannesburg.
She said one electric bus can displace approximately 20,000 litres of diesel annually, while time-of-use tariffs for e-mobility can make fuel costs up to 75% lower than diesel. That offers bus operators a path to lower running costs in a sector where public transport accounts for roughly 40% of passenger journeys across Africa and transport can make up as much as 30% of the final retail price of goods in some markets.
Kenyan grid and bus demand
Kamotho-Mureithi said, “In countries such as Kenya, the fundamentals for electrification are already in place.” She added, “This creates an opportunity to shift one of the largest sources of energy demand, transport, onto a domestic, renewable base.”
In Kenya, more than 90% of electricity generation comes from renewable sources, including geothermal and hydropower, while electricity demand fluctuates through the day and leaves significant surplus capacity at night unused. Kenya also spends $5 billion alone on fuel imports, a reminder of how quickly imported diesel costs can move through domestic transport systems.
Diesel prices and financing
The pressure has sharpened in recent years as diesel prices rose sharply across parts of East Africa, in some cases by as much as 80%. Geopolitical tensions in the Middle East are unsettling global oil markets, and African economies that rely heavily on imported fuel priced in dollars are feeling the effects through higher fuel prices, weaker currencies, and rising inflation.
The bus system across Africa is largely private-sector driven, fragmented, and overwhelmingly diesel-powered. Electric buses still require higher upfront investment than diesel buses, but pay-as-you-drive structures separate the cost of the battery from the vehicle itself and let operators pay for energy as they generate revenue.
What operators face next
That financing model is the friction point. The technology is available, but the transition depends on whether operators can bridge the higher purchase price long enough to benefit from lower operating costs and domestic electricity supply.
For city bus operators, the practical shift is already clear: fewer diesel purchases, less exposure to dollar-priced fuel, and a system that can run on electricity when demand is lower and capacity is sitting idle. For passengers and goods sellers in cities where transport costs feed into prices, the change reaches beyond the bus depot and into the cost of everyday travel and retail.
