Decarbonising mobility through financing a new electric bus network

Summary

The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, committed €46 million ($50 million equivalent) to launch Africa’s first fully electric public bus network in Senegal’s capital, Dakar. The Dakar Bus Rapid Transit (BRT) establishes a new benchmark for sustainable public transport in Africa and showcases the future of decarbonised urban mobility to the cities across the continent seeking to implement climate-smart mobility solutions. EAIF acted as co-lender alongside Proparco, the private sector arm of Agence Française de Développement, providing the initial debt of €86 million to the special purpose vehicle Dakar Mobilité. EAIF and Proparco pledged an additional facility of €2.6 million and €3.2 million, respectively, to part-finance the renewal of batteries used to power the bus fleet. Ensuring the project’s delivery and supporting the project’s affordability, PIDG Technical Assistance provided the transaction with $10 million of viability gap funding.

Key Takeaways:

Clear public policy signals: The investment follows progressive public policy designed to reduce the country’s dependence on hydrocarbons, which helped create a conducive enabling environment.

Unlocking finance for interdependencies: The deal also included a facility to part-finance the renewal of batteries, which is a critical unlock for the deployment of e-buses.

Race to the top: This project establishes a new benchmark for sustainable public transport in Africa and offers a potential blueprint for other locations.

Decarbonising mobility through financing a new electric bus network

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