Nairobi, KENYA (AP) — As fuel prices skyrocket and shortages become more frequent, African countries are increasingly turning to electric vehicles, with Ethiopia leading this shift toward cleaner and more cost-effective transportation solutions.
In a significant trend, Africa imported 44,358 electric vehicles from China in 2025, a substantial increase from the 19,386 imported in 2024. This surge, reported by China’s Commerce Ministry, reflects a growing demand, especially in Ethiopia, which banned new imports of gasoline and diesel-powered vehicles in 2024. Valued at over $200 million, these shipments position Ethiopia at the forefront, with the country accounting for a third of Africa’s imports from China that year.
Currently, over 115,000 electric vehicles operate on Ethiopian roads, representing about 8% of the nation’s total vehicle fleet. Alongside South Africa, Egypt, Morocco, and Nigeria, Ethiopia is a major player in Africa’s electric vehicle market. The ongoing conflict in Iran has exacerbated fuel shortages in Ethiopia, impacting transport systems and daily life, prompting the nation to reduce its reliance on costly oil and gas imports.
Ethiopia spends approximately $4.2 billion annually on fuel imports, which severely impacts its foreign currency reserves. The country’s Minister of Trade and Regional Integration, Kassahun Gofe, indicated that fuel subsidies cost up to $128 million monthly, with shipments falling short by over 180,000 metric tons due to disruptions caused by Iran’s effective closure of the Strait of Hormuz.
In response, the Ethiopian government has intensified efforts to promote electric vehicle adoption as a defense against external supply disruptions. “From a general perspective, it is sustainable,” stated Hiten Parmar, executive director of South African-based The Electric Mission. “By replacing imported fuel with domestically generated electricity, Ethiopia is strengthening its energy security position.”
Ethiopia’s Renewable Energy Advantage
More than 90% of Ethiopia’s electricity is generated from renewable sources, primarily hydro and solar power. The Grand Ethiopian Renaissance Dam, Africa’s largest hydroelectric project, is expected to double the nation’s power generation capabilities. However, this project has sparked a decade-long dispute with Egypt and Sudan over water resources.
“That scale of generation creates a foundation for electrified transport,” Parmar noted. “It allows EVs to be powered by locally produced clean energy, rather than costly imports.” He added that by gradually adopting electric vehicles, Ethiopia could reduce its intensive fuel import costs and redirect funds to essential development needs.
According to the International Energy Agency, electric vehicles worldwide displaced more than 1 million barrels of oil consumption daily in 2024.
Broader African Push for Electric Vehicles
Other African nations, including Egypt, South Africa, and Morocco, are also embracing electric vehicles by implementing policy incentives, enhancing manufacturing capabilities, and investing in clean energy. “That transition is beginning to ease pressure on fuel demand,” remarked Bob Wesonga, policy and investments lead at the Africa E-Mobility Alliance. “In the medium to long term, this creates a buffer against global oil volatility.”
For individual vehicle owners who have switched to electric vehicles, the savings are significant. “A private EV owner now spends roughly $4 a month on charging compared to about $27 previously spent on fuel,” Wesonga explained. “For public transport operators, the difference is even more striking.”
Challenges in Charging Infrastructure
Despite the promising shift to electric vehicles, challenges remain, particularly in terms of charging infrastructure. “The technology is already mature, the challenge is building it out fast enough,” noted Parmar. Ethiopia is deploying ultra-fast charging hubs in Addis Ababa, though expanding this network nationwide will require time and investment.
“The biggest hurdle is the last-mile power distribution,” Wesonga stated. “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 hindered infrastructure development, even as demand for electric vehicles grows.
Economic Implications and Future Plans
Ethiopia, alongside other African countries, is exploring the establishment of its own electric vehicle industries. Current plans include 17 electric vehicle assembly plants, with ambitions to increase this to 60 by 2030 to localize production and reduce costs.
However, affordability continues to be a significant issue. While operational costs are lower, electric vehicle prices remain high relative to average incomes. “The purchase price is still out of reach for many,” said Wesonga. “At the same time, restrictions on fossil fuel vehicles have pushed up the cost of used cars, creating additional barriers.”
Parmar emphasized that the transition to a national fleet of electric vehicles will be gradual. “Existing combustion vehicles will remain in use for some time, and the transition needs to account for livelihoods tied to that system.” Nevertheless, both experts agree that electric vehicles’ lower operating and maintenance costs could eventually reduce transportation costs, benefiting the broader economy.
Ethiopia is learning from countries such as China and Norway, where policy support, infrastructure investment, and consumer incentives have accelerated electric vehicle adoption. “This is not just about transport,” Wesonga said. “It’s about reshaping how the country uses energy, and who benefits from that shift.”
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Original Story at ny1.com