Transport inefficiencies are among the most persistent barriers to growth in emerging markets, particularly in urban areas. Congestion, pollution and unreliable mobility systems impose measurable costs on productivity and competitiveness. Globally, traffic congestion is estimated to cost some $70.4bn per year in lost time. Though statistics vary, most estimates show the transport sector regularly accounting for one-fifth of total greenhouse gas emissions. For emerging markets, the challenge is twofold: reducing externalities that undermine growth; and providing affordable, efficient mobility for rapidly expanding urban populations. Electrified mass transit systems – such as metro networks, bus rapid transit (BRT) and electric bus fleets – are being adopted as solutions that can deliver both economic and environmental dividends.
Modernisation
Nigeria’s transport sector has long experienced congestion and inefficiencies, particularly in Lagos, one of Africa’s largest cities. The electrification of the city’s BRT system is a major sustainability initiative driven by the Lagos Metropolitan Area Transport Authority, aiming to reduce carbon emissions and modernise public transport. The initiative, which began with pilot programmes in 2023, is part of a strategy to transition to cleaner, more efficient transport in the city that also involves implementing artificial intelligence-driven systems to optimise operations and improve on-time performance.
This initiative reflects a trend across emerging markets, where transport reform is increasingly framed around incremental upgrades rather than wholesale system replacement. Electrification is being introduced alongside operational improvements, allowing authorities to test performance, manage fiscal exposure and adapt systems to local constraints before scaling up and committing large sums of public money to new projects.
A notable example of urban rapid transit development is in Saudi Arabia, which has embarked on one of the most ambitious transport projects in the world. The $23bn Riyadh Metro, which opened in October 2025 and consists of six lines and 85 stations, is designed to carry 3.6m passengers daily. It is a flagship of Vision 2030, the Kingdom’s diversification strategy aimed at reducing reliance on oil and promoting sustainable urban development. The Metro is expected to generate long-term benefits through reduced travel times, enhanced labour mobility and lower fuel consumption, through less congestion and improved productivity.
Fleet Renewal
Mexico City has adopted a more incremental approach. Supported by the Zero-Emission Bus Rapid Deployment Accelerator (ZEBRA) initiative, in February 2023 the city introduced a fleet of 50 articulated electric buses on Line 3 of its Metrobús system and 26 separately procured electric buses for three other lines. The city’s BRT system serves 1.8m rides daily with 283 stations and 10 bus lines with the largest articulated e-bus fleet in Latin America.
Electrification is increasingly viewed as necessary to meet Paris Agreement targets, with added benefits including lower operating costs, improved equity and safer mobility. ZEBRA, launched in 2019, has also worked to guarantee political commitments in other cities across the region, such as Medellín, Santiago and São Paulo, by supporting the procurement of 3600 buses across Latin America. Mexico City’s experience highlights a third pathway, where established systems are decarbonised through targeted fleet renewal. This model prioritises operational continuity while reducing emissions and costs, underscoring how electrification strategies are shaped as much by legacy infrastructure as by environmental or economic targets.
Across emerging markets, electrified mass transit projects deliver similar outcomes – reduced congestion and emissions alongside gains in operational efficiency. Their success is linked to financing structures and institutional capacity, with initial costs requiring sustained public support and credible regulatory frameworks to translate investment into long-term performance.
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