Nairobi, KENYA
The rise of electric vehicles (EVs) in Africa is gaining momentum, driven significantly by Ethiopia. A combination of fuel shortages and rising prices has led several countries to pursue more cost-effective and sustainable transportation options.
According to data from China’s Commerce Ministry, Africa imported 44,358 electric vehicles from China in 2025, a significant increase from 19,386 in 2024. This surge, valued at over $200 million, underscores the growing demand for EVs, particularly in Ethiopia, which took the lead after banning new imports of gasoline and diesel vehicles in 2024.
Ethiopia now boasts more than 115,000 electric vehicles on its roads, making up about 8% of the national vehicle fleet. In 2025, Ethiopia accounted for a third of Africa’s EV imports from China, surpassing other key markets like South Africa, Egypt, Morocco, and Nigeria.
The ongoing conflict in Iran has exacerbated fuel shortages in Ethiopia, disrupting transportation and daily activities. This situation has propelled the Ethiopian government to minimize oil and gas imports, aiming instead to fortify energy security through increased EV adoption. Yet, this strategy raises concerns about the availability of charging infrastructure and the affordability of EVs.
Annually, Ethiopia spends approximately $4.2 billion on fuel imports, a significant burden on its foreign currency reserves. Kassahun Gofe, Ethiopia’s Minister of Trade and Regional Integration, stated that the country is also spending up to $128 million monthly on fuel subsidies. The effective closure of the Strait of Hormuz due to the conflict has led to a shortfall of more than 180,000 metric tons in fuel shipments.
To mitigate such external supply disruptions, Ethiopia is intensifying efforts to promote electric vehicle adoption. “From a general perspective, it is sustainable,” said Hiten Parmar, executive director of The Electric Mission in South Africa. “By replacing imported fuel with domestically generated electricity, Ethiopia is strengthening its energy security position.”
Ethiopia benefits from having over 90% of its electricity derived from renewable sources, primarily hydro and solar energy. The Grand Ethiopian Renaissance Dam—Africa’s most extensive hydroelectric project—is anticipated to double Ethiopia’s power generation capabilities, despite ongoing disputes over water supplies with Egypt and Sudan.
“That scale of generation creates a foundation for electrified transport,” Parmar explained. “It allows EVs to be powered by locally produced clean energy, rather than costly imports.” He further noted that by gradually adopting EVs, significant reductions in fuel import expenditures can be redirected to other essential developmental needs.
Globally, the International Energy Agency reports that electric vehicles displaced more than 1 million barrels of oil consumption daily in 2024. Nations such as Egypt, South Africa, and Morocco are also transitioning towards EV usage by implementing policy incentives, investing in manufacturing capacity, and expanding clean energy infrastructure.
“That transition is beginning to ease pressure on fuel demand,” remarked Bob Wesonga, policy and investments lead at the Africa E-Mobility Alliance. “That’s over 100,000 vehicle owners who are no longer directly exposed to pump price shocks. In the medium to long term, this creates a buffer against global oil volatility.”
For those who have switched, the cost savings are substantial. Wesonga stated, “A private EV owner now spends roughly $4 a month on charging compared to about $27 previously spent on fuel. For public transport operators, the difference is even more striking.”
Despite these benefits, Ethiopia faces structural challenges in the transition to EVs. Parmar pointed out, “The technology is already mature; the challenge is building it out fast enough.” While ultra-fast charging hubs are being deployed in Addis Ababa, expanding them nationwide will require time and investment.
“The biggest hurdle is the last-mile power distribution,” Wesonga added. “While Ethiopia has a surplus of generation, getting that power reliably to where it’s needed, especially outside Addis Ababa, remains a challenge.” Frequent blackouts and delays in connecting high-capacity charging stations have slowed infrastructure development, even as EV demand increases.
Currently, Ethiopia is considering establishing its own EV industry. Official data indicates plans for 17 electric vehicle assembly plants, with a goal to increase that number to 60 by 2030. This initiative aims to localize production and reduce costs.
Nonetheless, affordability remains a significant barrier. Although EV operating costs are lower, the purchase price is still high relative to average incomes. Wesonga noted, “The purchase price is still out of reach for many. At the same time, restrictions on fossil fuel vehicles have pushed up the cost of used cars, creating additional barriers.”
This situation could lead to unintended social impacts if not managed carefully. “A national fleet transition is always gradual,” Parmar said. “Existing combustion vehicles will remain in use for some time, and the transition needs to account for livelihoods tied to that system.”
Despite these challenges, experts agree on the long-term benefits. Lower operating and maintenance costs for EVs could reduce transport costs over time, potentially lowering the cost of goods and improving access to economic opportunities. Ethiopia is also learning from countries like China and Norway, where policy support, infrastructure investment, and consumer incentives have accelerated EV adoption.
“This is not just about transport,” Wesonga stated. “It’s about reshaping how the country uses energy, and who benefits from that shift.”
Original Story at abcnews.com