Ethiopia is taking decisive steps toward transforming its transportation sector with a bold push for electric vehicles (EVs).
In a bid to reduce carbon emissions and reliance on fossil fuels, the Ethiopian government has unveiled a new national strategy aimed at rapidly expanding the adoption of EVs. The Ministry of Transport and Logistics announced the development of this strategy on Wednesday, which is expected to be rolled out after incorporating feedback from stakeholders and receiving final approval.
State Minister of Transport and Logistics, Bareo Hassen, emphasized the government’s commitment to fostering an environment that encourages both local and international companies to engage in the import, production, and assembly of EVs. This initiative, which aligns with Ethiopia’s broader green transition, is expected to be a catalyst for job creation, technology development, and sustainable growth.
Ethiopia has already seen over 100,000 electric vehicles hit its roads, and the government aims to increase this number to 500,000 within the next decade, replacing the majority of fossil-fuel-powered vehicles. Such a transition would not only help reduce the country’s environmental impact but also minimize the need for costly fuel imports, thereby improving Ethiopia’s foreign currency reserves.
As part of its strategy, the Ethiopian government is offering incentives to private investors involved in the EV ecosystem. These include free or leased land for establishing after-sales service stations and infrastructure. The government has also introduced a ban on the import of gasoline and diesel vehicles, marking a significant step toward its goal of a cleaner, more sustainable transportation network.
The shift toward electric mobility is particularly significant given Ethiopia’s abundant renewable energy resources, such as hydropower, which can be harnessed to power the growing fleet of electric vehicles. This reliance on green energy further strengthens the country’s commitment to reducing its carbon footprint.
Local production of EVs is also on the rise. Ethiopian company Belayneh Kindie Metal Engineering Complex is assembling EV minibuses and buses using components imported from China’s Golden Dragon Company. This local manufacturing effort aims to meet the increasing demand for electric vehicles and supports Ethiopia’s ambition to become a hub for sustainable transport in Africa.
The recent entry of Chinese EV giant BYD into the Ethiopian market, in collaboration with local distributor MOENCO, is expected to accelerate the country’s clean energy transition. Besufekad Shewaye, general manager of Belayneh Kindie, sees significant potential in the Ethiopian market, noting the country’s renewable energy resources as a key advantage in scaling up EV adoption.
Ethiopia’s push for electric vehicles reflects a broader regional trend towards green mobility in Africa. As the country invests in EV infrastructure and production, it positions itself as a leader in the continent’s transition to sustainable transportation. The success of Ethiopia’s initiative could serve as a model for other nations in Africa looking to address environmental challenges while promoting economic growth through green technology.
