Ethiopia goes electric following gas car ban

Addis Ababa, Ethiopia: Shashe Asemare handles the large steering wheel with ease, navigating the mint-green city bus through the notoriously congested streets of Addis Ababa. Ever since the Ethiopian capital introduced 100 new electric buses to its fleet in 2025, she’s noticed the benefits.

“These electric buses are very different from the gasoline ones,” she said, taking a glance at the cars overtaking to her left. “They don’t emit exhaust fumes or make that annoying noise.”

The clean, quiet buses have also been a hit with many of the 90,000 passengers who depend on the new rapid transit line for their daily commute, like Zeraye Tekelu.

“They’re very comfortable to travel in. They’re also better because they don’t pollute the air,” he said, calling it “a step forward for our country.”

Ban on import of gasoline and diesel vehicles

Addis Ababa, one of Africa’s fastest-growing cities, introduced the climate-friendly buses last year in keeping with Ethiopia’s ban on the import of gasoline and diesel cars.

Announcing the world’s first such ban in early 2024, Transport Minister Alemu Sime touted Ethiopia’s support for “green development.” This includes tax breaks for electric vehicles (EVs), 17 plants to build electric vehicles using parts from China and a focus on climate-friendly public transport, including fully electric light rail.

While the government has talked up Ethiopia’s green ambitions, there’s another major reason for the move to go electric: the high cost of imported fossil fuels.

The East African country reportedly spent about €4 billion ($4.6 billion) on fuel imports in 2023 and 2024, a major cost for one of the continent’s poorest nations. Conventional fuel prices have more than tripled since 2022.

In March, the Ministry of Transport & Logistics said global oil market instability triggered by the Iran war showed that Ethiopia needed to speed up its shift and continue to foster the use of electric vehicles, alongside other behavioral changes like carpooling and switching to walking or cycling.

Just over two years since announcing the ban, more than 100,000 of Ethiopia’s 1.2 million registered vehicles are electric. The country is aiming for a 500,000 EV share by 2030.

Electric passenger cars represent more than 5% of the country’s total fleet, putting it on par with the European Union. This in a nation where around half of the population of more than 110 million still lives without electricity.

Ethiopia’s EVs running on hydropower

While EVs do eliminate tailpipe emissions, the electricity that runs the cars doesn’t always come from a non-polluting source. Many countries still rely on natural gas, coal or nuclear.

That’s not the case in Ethiopia. Known as “Africa’s water tower” for its significant rainfall and many rivers, including the source of the Nile, Ethiopia generates more than 96% of its electricity from renewable hydropower. And the newly opened Grand Ethiopian Renaissance Dam, with a capacity of more than 5,000 megawatts of renewable energy, is expected to more than double the country’s electricity supply.

For many in Ethiopia, where salaries are often less than €1,000 ($1,165; 187,000 Ethiopian birr ) a year, the starting price of a new electric car — €17,000 — is steep. But taxi driver Abdurahman Ali is happy he made the switch.

Ethiopia’s EV boom: A role model for all?

“To start with, the EV is just more comfortable,” he said, behind the wheel of his mint-colored Changan hatchback, a Chinese brand.

“Before switching, I used to drive a Toyota Vitz — every month I would spend 40,000-50,000 birr on fuel. Since switching to electric and charging at home, my monthly costs have dropped to about 5,000 birr, at most. That’s a huge difference.”

More charging stations are needed
But with more electric vehicles on the roads, Ethiopia is now facing a different problem: charging.

“The government should work hard on this sector,” said Abdurahman, adding that the charging service is only available in Addis Ababa where “the number of charging stations is not sufficient.” There are around 500 in the country, most in the capital.

Private operators like Ezekiyas Dufera have spotted the gap in the market. Earlier this year, he opened a 24-hour charging station that includes an app he says provides customers with full transparency on pricing. Despite the demand, he has faced some roadblocks.

“There are challenges in terms of electricity outage sometimes,” he said, adding that the situation has improved. “But overall it’s been a really great opportunity.”

Ezekiyas will have no shortage of customers as Addis Ababa is now planning to electrify the shared minibus taxi service.

The backbone of the city’s public transport, it comprises 8,000 and 10,000 vehicles that carry over two-thirds of the city’s passengers every day.