Ethiopia is making waves with its rapid shift to electric vehicles, becoming the first country to ban gas-powered car imports. With over 100,000 EVs on the road and plans to quadruple this number by 2032, the East African nation is leveraging its abundant hydropower to fuel this green revolution.
The East African nation of Ethiopia is making headlines for its aggressive and fast-paced transition to electric vehicles (EVs). With government policies and growing local manufacturing capabilities, Ethiopia is positioning itself as a leader in green mobility.
How is Ethiopia embracing electric mobility? It became the first country to ban gas-powered passenger vehicles in January 2023, part of a government-led effort to accelerate EV adoption.
Currently, Ethiopia has around 100,000 electric vehicles on its roads, and the government estimates this number will quadruple by 2032. This ambitious plan is largely motivated by the high costs of importing fuel and the country’s renewable energy resources.
Approximately 96% of Ethiopia’s electricity is generated from clean hydropower, making the transition to EVs financially and environmentally sound. “They really are a clean-energy country,” Jane Akumu from the United Nations Environment Programme observed.
The government has introduced several policies aimed at making electric vehicles more accessible. Customs tax on imported gas vehicles, which was previously as high as 200%, has been slashed to 15% for fully assembled EVs.
To support local manufacturing, the government has reduced or eliminated import tariffs on EV parts. This has led to the growth of local businesses, such as Belayneh Kindie Group, which assembles hundreds of EVs using parts imported from China.
Belayneh Kindie Group’s manager, Besufekad Shewaye, noted the increasing preference for EVs: “Nowadays most vehicle owners prefer EVs, especially light vehicles.”
Additionally, June saw the inauguration of Ethiopia's largest EV factory, expected to produce around 1,000 cars per year. The investment of over $52 million by local entrepreneur Belayneh Kinde reflects optimism in the EV sector.
Despite these positive developments, the country faces significant economic challenges. An economic deficit, conflicts in various regions, and difficulties securing foreign loans could hinder progress.
The possibility of devaluing the currency to generate foreign currency supplies could impact the importation of necessary EV components. Key infrastructure projects, such as the $5 billion Grand Renaissance Dam—crucial for electricity upgrades—have also faced delays.
The cost of electric vehicles remains high for many residents. Some early adopters are reevaluing their decisions due to the expenses associated with ownership and the limited existing charging infrastructure.
“Those buying EVs are primarily from high-income groups,” said Iman Abubaker, who focuses on sustainable transportation at the World Resources Institute. Her organization advocates for investments in electric buses and public transit to enable broader access across income levels.
Ethiopia's electric vehicle initiative extends beyond personal transportation and includes public transit. The government’s 10-Year Perspective Development Plan aims to import 4,800 electric buses and 148,000 electric cars by the year 2030.
The capital city, Addis Ababa, recently introduced its inaugural fleet of electric buses. These locally assembled buses, supplied with components from Chinese companies, aim to reduce urban pollution and promote sustainability.
The initiative has been positively received by both passengers and drivers. These electric minibuses are capable of traveling between 270 and 350 kilometers on full battery charge, depending on conditions like air conditioning and load.
Looking forward, the Ethiopian government remains optimistic about the future of electric mobility. The nation is already seeing gradual growth in the EV sector, with electric vehicles now constituting around 10% of all vehicles on the road.
The government’s aim for 2030 is to have half a million EVs on the streets, which marks an increase from the current goal of 150,000. Yet, the path forward is fraught with challenges, as highlighted by recent discussions around infrastructure and financial constraints.
Adding to the dynamic is the surge of interest in electric vehicles amid rising fuel prices. Long queues at gas stations have become common as residents seek alternatives, particularly as electric users enjoy the convenience and cost-effectiveness associated with EVs.
Take the case of Mikial Belayneh, who no longer worries about waiting for petrol. Charging his Toyota bZ4X at home efficiently supports his daily commute without the hassle of external fuel shortages.
The shift to electric vehicles is not merely about transportation; it’s about the broader socioeconomic upliftment of the Ethiopian people. Electric vehicles are not only paving the way for cleaner air but also aligning with Ethiopia’s goal of pulling millions out of poverty.
Even with the challenges of financing and infrastructure looming, there is no denying the momentum behind Ethiopia's EV transition. The policies and initiatives put forth by the government showcase their commitment to sustainable development.
The ingredients for success are there—renewable energy sources, strategic policy implementation, and local manufacturing potentials. Ethiopia’s ambitious vision for electric mobility has the potential to inspire other nations to follow suit.
Still, the nation is at the crossroads, balancing between operational challenges and transformative opportunities. How Ethiopia navigates this period of transition will likely influence the global narrative around electric mobility and sustainability.
