Dakar Mobility Raises $147M to Pioneer Sub-Saharan Africa’s First 100% Electric Bus Rapid Transit System
In a groundbreaking development, Dakar Mobility, a Senegalese company jointly owned by Meridiam and the Sovereign Strategic Investment Fund of Senegal (FONSIS), has successfully secured €135 million for the implementation of Sub-Saharan Africa’s inaugural 100% electric Bus Rapid Transit (BRT) system. The funds, pooled together by Proparco, EAIF, PIDG TA, and the European Union (EU), mark a significant leap forward in the region’s commitment to sustainable urban transport.
Dakar, grappling with chronic traffic congestion leading to road safety concerns, high air pollution, and substantial greenhouse gas emissions, initiated a comprehensive urban transport restructuring program. The Executive Council for Sustainable Urban Transport (CETUD) is spearheading this effort, focusing on the introduction of a state-of-the-art BRT system to address these challenges.
The future BRT network is set to connect the Petersen bus station in Dakar Plateau to the Guédiawaye prefecture in the northern suburbs, covering a distance of 18.3 km with 23 stations. The deployment includes a fleet of 121 buses powered entirely by electricity, making it a pioneering project in Sub-Saharan Africa.
read also African B2B Auto Marketplace Shekel Mobility Attracts $7M Investment from Leading VCs for Expansion
Financing for the Dakar BRT project includes a €85.4 million loan shared equally between Proparco and EAIF, with an additional €6.4 million loan from both institutions to fund battery replacements at the end of the buses’ eight-year lifespan. The European Union contributes €7 million, and PIDG TA secures approximately €9 million in grants to complement the project’s financial requirements. The remaining balance is covered by Meridiam and FONSIS.
The European Union’s involvement in the project aligns with its Global Gateway strategy, focusing on intelligent, clean, and secure connections in digital, energy, and transportation sectors. This financial backing underscores the EU’s commitment to promoting clean urban mobility solutions.
Upon completion, the BRT is poised to become a major mode of transport in the Dakar metropolitan area, with an ambitious target of 300,000 passengers daily. The system is expected to significantly reduce travel times, connecting the two ends of the line in just 45 minutes, compared to the current 90 minutes.
Beyond its transportation benefits, the Dakar BRT project promises numerous positive impacts on the local economy and quality of life. Dakar Mobility plans to create approximately 1,000 direct and local jobs, emphasizing employment access for women and providing opportunities for young people to develop skills in mass public transport.
Moreover, improved accessibility for residents of peripheral areas is expected to boost employment in the Dakar basin. Dakar Mobility aims to implement a social tariff, offering up to a 50% reduction compared to the standard fare, ensuring that disadvantaged populations can access the new opportunities facilitated by the BRT system.
Inclusivity and safety are integral aspects of the project, with quality facilities planned for stations and surrounding areas. These include provisions for pedestrians, public lighting along BRT routes to enhance security, dedicated spaces for wheelchair users within buses, and reserved seating for individuals with reduced mobility.
The Dakar BRT project, in parallel with the reorganization of existing bus lines, demonstrates a holistic approach to urban mobility. It complements the Regional Express Train (TER) inaugurated in 2021 and emphasizes the significance of sustainable transport solutions.
read also PepsiCo Invests in South African Agritech Startup Khula to Support Expansion
Dakar’s ambitious venture into a 100% electric BRT system stands as a testament to the region’s commitment to sustainable urban development. With environmental, economic, and social benefits in focus, this pioneering project is poised to make a transformative impact on Dakar’s transportation landscape and set a precedent for sustainable urban mobility across Sub-Saharan Africa.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard