Ethiopia, long plagued by fuel shortages and blackouts, has become the first country in the world to ban imports of petrol and diesel cars, positioning itself as an unlikely leader in the electric vehicle (EV) revolution. The government’s ambitious policy shift, paired with the recent inauguration of the Grand Ethiopian Renaissance Dam (GERD), is reshaping the country’s transport and energy future.
The Ministry of Transport reports that more than 115,000 EVs now operate across the nation, with a goal of reaching 500,000 by 2030. China’s BYD dominates the market, though Western brands are also visible in Addis Ababa, where EVs are steadily replacing combustion vehicles. Tax exemptions on EVs have accelerated adoption, despite steep purchase prices — around £11,000 for a BYD model — in a country where doctors earn barely £60 per month.
The GERD, Africa’s largest hydroelectric project, has doubled Ethiopia’s electricity output to over 5,000 megawatts, offering cheap and renewable energy to power the transition. Yet grid challenges persist: only 20% of households enjoy reliable electricity, and charging stations remain scarce, with just over 100 nationwide compared to a government target of 2,300.
Drivers like architect Deghareg Bekele and taxi operator Firew Tilahun say EVs save time and money, reducing monthly fuel expenses by more than 80%. Still, range anxiety and weak infrastructure limit long-distance travel. Industry insiders warn that without investment in charging networks and durable batteries, the shift could outpace the country’s readiness.Beyond environmental goals, the primary driver is economic: Ethiopia spends $4.5 billion annually importing fuel, a heavy burden on scarce foreign reserves. By harnessing domestic hydropower, officials hope to cut imports, create local assembly jobs, and position Ethiopia as a model for green development in Africa.
