Ethiopia Leads the Way in Electric Vehicle Transition, Boosting Clean Energy and Tackling Fuel Scarcity
ICARO Media Group
In response to fuel shortages and skyrocketing prices in Addis Ababa, Ethiopia's capital city, residents have been seeking alternatives to traditional petrol-powered vehicles. Mikial Belayneh, an Addis resident and owner of an imported Toyota bZ4X electric vehicle (EV), is among those enjoying the perks of EV ownership. Belayneh shared with CNN, "I no longer line up for petrol on the road. A full charge is more than enough for two days." This transition to EVs is part of Ethiopia's ambitious plan to lift millions out of poverty and decrease pollution levels in the rapidly growing city.
As the demand for cleaner and quieter transportation options increases, Addis Ababa's streets are witnessing the emergence of electric buses, smaller 15-seat minibuses, cars, and motorbikes. Currently, there are approximately 100,000 EVs in Ethiopia, with the government estimating that this number will quadruple by the year 2032. To accelerate the adoption of EVs, the Ethiopian government took a groundbreaking step earlier this year by banning the import of all gas-powered passenger vehicles, making it the first nation in the world to do so. Import taxes on EVs have also been significantly reduced compared to gas vehicles, further incentivizing their purchase.
The decrease in import taxes has led to a rise in local EV manufacturing. Companies like Belayneh Kindie Group have assembled hundreds of EVs in Ethiopia using parts imported from China. The reduced import tariffs on EV parts assembled in the country have made EV manufacturing even more economically viable. Besufekad Shewaye, a manager at Belayneh Kindie Group, expressed, "Nowadays, most vehicle owners prefer EVs, especially light vehicles. The demand is increasing from day to day."
The transition to EVs in Ethiopia has been driven by various factors. Importing fuel is costly, and the country relies heavily on clean hydropower, which accounts for 96% of its electricity generation. Jane Akumu, a program officer at the United Nations Environment Programme, commended Ethiopia's potential to become a clean-energy country, questioning the rationale of importing oil when local electric power can be harnessed for vehicles.
Although EV ownership in Ethiopia is still largely concentrated among high-income groups due to the initial expense, organizations like the World Resources Institute are actively advocating for increased investment in electric public transport to make efficient EVs accessible to people of all income levels.
Ethiopia's ban on gas car imports caught many by surprise, as the country has demonstrated its ability to swiftly implement environmental policies. In the early 2000s, Ethiopia swiftly banned leaded gasoline, showcasing its commitment to sustainable practices. With a current vehicle fleet of approximately 1.2 million, or one car per 1,000 people, Ethiopia's efforts to encourage public transportation and reduce high taxes on gas-powered vehicles have limited car ownership rates.
Despite the cost constraints, the number of EVs on Ethiopia's roads is steadily increasing. Within two years of Ethiopia's 10-year goal, set in 2022, to bring in over 100,000 EVs, these vehicles already make up nearly 10% of the country's total fleet, according to CleanTechnica.
Ethiopia's commitment to reducing climate and environmental pollution from gas-powered cars, coupled with its transition to cleaner transportation options, positions the country as a leader in the global EV movement. While the ban on imported gas cars remains a unique initiative, the growth of EVs in countries like Kenya, where electric motorbikes have seen a surge in popularity, demonstrates the region's drive towards sustainable mobility solutions.
As Ethiopia continues to embrace electric vehicles and invest in renewable energy sources, it sets a positive example for other nations to follow suit in the fight against climate change and the promotion of clean transportation alternatives.