Earlier this year, facing a surge in fuel prices in Ethiopia, Awgachew Seleshi opted to purchase an electric car, aligning with the government’s initiative to phase out gas-powered vehicles. However, he has since begun to question the decision due to various challenges such as inconsistent electricity supply in Addis Ababa and the difficulty in acquiring spare parts.
As a civil servant, Seleshi expressed concerns about the challenges of charging his electric vehicle. He highlighted the high cost of imported spare parts from China, a scarcity of qualified mechanics, and the poor resale value of such vehicles. His situation reflects broader issues faced by Ethiopia, which became the first country worldwide to ban the importation of non-electric private vehicles in January.
This move was intended to alleviate the financial burden on the government, which spends foreign currency to subsidize fuel costs, while also supporting the global push for greener technology to reduce climate-changing emissions. Recently, the Ethiopian government increased fuel prices by up to 8%, aiming to gradually eliminate fuel subsidies in the nation.
Authorities report some success in enforcing the ban on non-electric vehicle imports, with over 100,000 electric cars now entering Ethiopia each month. The goal is to increase these imports to 500,000 per month by 2030, by which time a large new dam on the Nile River is expected to produce power at full capacity.
Prime Minister Abiy Ahmed, in a televised statement, announced that the Grand Renaissance Dam would generate more than 5,000 megawatts of electric power within a year, potentially supporting the shift to electric vehicles. Despite this, many residents of Addis Ababa, a city of over 5 million, remain skeptical of achieving the electric vehicle objectives without further infrastructure and service enhancements.
A limited number of garages capable of repairing electric vehicles are overwhelmed, with complaints of excessive pricing from an apparent lack of competition. Yonas Tadelle, a mechanic in Addis Ababa, noted the scarcity of tools, spare parts, and expertise necessary for maintaining such vehicles, resulting in many being parked, awaiting parts from China.
Bareo Hassen Bareo, Ethiopia’s transport minister, expressed confidence in the country’s ability to set an example with a green economy, emphasizing investment in public charging stations and plans to establish a local electric vehicle battery manufacturing plant.
Private initiatives have faced challenges, such as a dissolved collaboration between Olympian Haile Gebreselassie and South Korean manufacturer Hyundai due to sourcing issues. Economist Samson Berhane indicated that the influx of electric vehicles, despite lacking infrastructure, poses adaptation hurdles for consumers. Although some believe Ethiopia can eventually support the anticipated 500,000 electric vehicles, gasoline-powered vehicles remain prevalent, with a small fraction being electric.
Businessman Yared Alemayehu’s experience with a Chinese-made electric vehicle for taxi services, which he eventually sold at a loss, underscores the ongoing preference for gasoline vehicles. Dereje Hailu, a taxi driver, shared his apprehensions about using his electric vehicle beyond Addis Ababa due to the lack of charging stations, reflecting common concerns among electric vehicle users in the region.
