ADDIS ABABA, Ethiopia — With fuel prices escalating in Ethiopia earlier this year, Awgachew Seleshi made the decision to purchase an electric vehicle, embracing the government’s initiative to reduce reliance on gas-powered cars. However, several months into this choice, he finds himself reconsidering its viability due to a host of challenges he faces, including inconsistent electricity supply in the capital and difficulty obtaining spare parts.
Seleshi, who works as a civil servant, expressed his struggles, stating, “Charging my car has been a challenge. Spare parts that are imported from China are expensive, few mechanics are able to fix such cars and the resale value of such cars is poor.”
His experience highlights broader challenges confronting Ethiopia. Earlier in January, the country implemented a groundbreaking ban on the importation of non-electric private vehicles, marking it as the first nation globally to do so. This decision not only alleviated some pressure on government budgets, which struggle to subsidize fuel costs with limited foreign currency, but also showcased a rising enthusiasm for electric vehicles amid a global shift towards eco-friendly technologies designed to mitigate climate change.
In response to the need for financial adjustment, the Ethiopian government announced an 8% increase in fuel prices earlier this month, part of a gradual plan to eliminate fuel subsidies in Africa’s second-most populous nation. Officials have claimed some success in enforcing the ban on non-electric vehicles, now welcoming more than 100,000 electric cars into the country each month. The target is to reach a milestone of 500,000 electric vehicle imports by 2030, coinciding with the anticipated full capacity generation of a newly built dam on the Nile River.
Prime Minister Abiy Ahmed has stated that the Grand Renaissance Dam will generate over 5,000 megawatts of electricity within a year, projecting the capacity as a significant factor in facilitating the electric vehicle transition. Nonetheless, skepticism remains among residents in Addis Ababa, a city with over 5 million inhabitants, about whether the ambitious electric vehicle goals can be achieved without further infrastructure development and support services.
Garage owners equipped to repair electric vehicles are reportedly overwhelmed, pricing seems high due to the lack of competition, and customers are left frustrated. Yonas Tadelle, a mechanic in the capital, pointed out, “There are only two or three garages that can fix new energy vehicles in Ethiopia, and many consumers lack awareness on how to maintain such vehicles.” He also noted that mechanics face barriers such as inadequate tools and limited access to necessary spare parts.
A significant number of electric vehicles are now sitting idle in garages and parking areas, awaiting essential parts expected to arrive from China. Bareo Hassen Bareo, the minister in charge of transport, has expressed optimism about Ethiopia’s potential to emerge as a hallmark of a green economy, emphasizing that electric vehicles would be a principal component of this vision. Plans are underway to invest in public charging stations and establish a manufacturing plant for electric vehicle batteries locally.
On the private sector side, there was a collaborative effort initiated by Olympic champion Haile Gebreselassie and South Korean automaker Hyundai to produce electric vehicles in Ethiopia; however, this initiative reportedly fell through due to challenges in sourcing materials. Economist Samson Berhane highlighted the predicament of a sudden influx of electric vehicles in the local market amidst inadequate infrastructure, making it tough for customers to effectively adapt to the changes. “Very few people are willing to take the risk of buying electric cars due to the lack of infrastructure, shortage of mechanics specialized in EV maintenance and the flooding of the market with Chinese brands that have questionable details and long-term visibility,” Berhane elaborated.
Despite the hurdles, he remains optimistic that Ethiopia can supply the expected 500,000 electric vehicles in the next decade while balancing its industrial growth aspirations. Yet, numerous Ethiopians are beginning to abandon electric vehicles, and the second-hand market for gasoline cars remains active. Currently, there are roughly 1.2 million vehicles in Ethiopia, with only a small segment being electric.
Businessman Yared Alemayehu invested in a Chinese electric vehicle intended for use as a taxi. While aware of its mechanical issues, he thought repairs were possible. Ultimately, after realizing the complications, he sold the vehicle at a loss and opted for a Toyota Corolla from 2007, believing it offered better reliability for around $20,000, inclusive of significant taxes associated with gasoline vehicles that often exceed the vehicle’s purchase cost.
Reflecting on his experience, he stated, “In addition to having to charge my old electric car, it frequently broke down, and the garage was overcharging, with the waiting times becoming unbearable.”
Taxi driver Dereje Hailu, who had high hopes for his electric E-Star after his purchase earlier this year, voiced similar frustrations. “With such a car, I fear I might be stuck if I go far from Addis Ababa where there are no charging stations,” he lamented.
