Accelerating a market transition in West Africa: New Models for Electric Bus Deployment
Summary
The objective of this project is to analyse the state of the West African bus market, including the current operator landscape in Dakar, Freetown, Accra, Abidjan, Lomé and Lagos, to highlight opportunities to support the deployment of electric buses (e-bus), including relevant commercial and financial arrangements. This study, led by C40 Cities and the United Nations Environment Programme (UNEP), assesses the readiness of six West African cities (Abidjan, Accra, Dakar, Freetown, Lagos, and Lomé) to deploy e-buses and identifies opportunities to scale their adoption. Drawing from international experiences such as the ZEBRA program in Latin America and South Africa, the study explores viable commercial, financial, and regulatory frameworks to support sustainable e-bus operations. Given the high capital costs of vehicles and charging infrastructure, deploying e-buses requires innovative business models and financing approaches. The report analyzes contractual structures such as gross cost and net cost models, which determine how revenue risk and operational responsibility are shared between public authorities and operators. It also reviews ownership arrangements ranging from fully public models to private operator-led and leasing-based structures, as well as emerging asset-light models involving third-party ownership of buses, batteries, and charging infrastructure.
Key takeaways
Gross Cost Contracts: The authority bears demand and revenue risk, making it suitable when farebox recovery is weak or uncertain. Effective in cities with limited private capacity but strong public governance in low-revenue environments or where the authority needs strong control over service levels and fares.
Net Cost Contracts: Operators retain fare revenue and assume demand risk, incentivizing efficiency and tactical decision-making. Works when fare revenues cover operating costs and part of capital costs, appropriate for high-demand corridors or markets with financially strong operators.
Fully Public Ownership: Provides maximum control but requires major upfront investment and expertise from public sector. Effective where municipalities can access concessional finance and have strong capacity to manage all risks.
Operator Ownership: Shifts most financial and technological risks to the private sector, but feasible only in mature markets with stable revenues. Suitable when operators are well-capitalized and can access credit.
Leasing Models. Spreads costs over time, enabling adoption without large upfront investments. Relevant for cities pursuing rapid electrification under fiscal constraints, useful in transition phases or when operators face CAPEX barriers.
Asset-Light / Third-Party Ownership: Ideal when neither public authorities nor operators can bear full investment risks. A third party (utility, manufacturer, etc.) owns buses, batteries, or charging assets and leases them to operators or the authority. Reduces local financial exposure but requires strong procurement processes, clear payment flows, and well-defined contracts and responsibilities.
Downloads
Publisher
UNEP
Contacts
Polash Das polash.das@un.org Programme Management Officer Sustainable Mobility Unit United Nations Environment Programme