Ethiopia’s capital, Addis Ababa, faces significant fuel shortages and rising prices. Amid this crisis, electric vehicle (EV) driver Mikial Belayneh has found a solution. He no longer waits in long lines for petrol. Instead, he charges his imported Toyota bZ4X at home. This EV provides enough power for two days of driving, showcasing a growing trend toward electric vehicles in the city. EVs started overtake gas powered cars on roads.
Transition to Electric Vehicles
Addis Ababa is witnessing a rapid transition to EVs. The streets now feature electric buses, minibuses, cars, and motorbikes. Currently, there are about 100,000 EVs in Ethiopia, with projections suggesting this number will quadruple by 2032. This shift is largely due to the Ethiopian government’s recent ban on gas-powered passenger vehicle imports, making it the first country to implement such a measure.
Government Incentives
The Ethiopian government has also reduced customs taxes on imported EVs. Previously, gas vehicle taxes reached up to 200%, while fully assembled EVs now incur only a 15% tax. This policy aims to promote local EV manufacturing. Companies like Belayneh Kindie Group are already assembling vehicles using parts imported from China, benefiting from low import tariffs on EV components.
Economic and Environmental Benefits
Ethiopia’s move toward EVs is economically strategic. The country relies on hydropower for 96% of its electricity, making EVs a cleaner and more sustainable option. Jane Akumu from the United Nations Environment Programme emphasizes the benefits of using local electricity instead of importing oil.
Surprising Policy Changes
The total ban on gas-powered vehicle imports surprised many. Assefa Hadis Hagos, a transportation adviser, noted that the government recognized its renewable energy potential and acted swiftly. This decisive action contrasts with the slower processes often seen in more democratic nations.
Current Vehicle Ownership Landscape
Despite the push for EVs, car ownership in Ethiopia remains low, with about 1.2 million cars for a population of over 100 million. In comparison, car ownership rates are significantly higher in countries like the United States and Nigeria. The Ethiopian government has historically kept car ownership low through high taxes on gas vehicles, encouraging public transportation use.In summary, the transition to electric vehicles in Addis Ababa is a response to fuel shortages and a strategic move toward sustainability, supported by government policies aimed at reducing reliance on imported oil.