Africa Daily Has Ethiopia’s electric vehicle policy paid off?
Jan 30, 2025
Kalkidan Yibeltal, a BBC correspondent in Addis Ababa, and Hilina Legesse, Vice President of Dodai, Ethiopia’s first EV manufacturer, delve into Ethiopia's groundbreaking ban on petrol and diesel vehicles. They discuss the surge in electric vehicles amidst challenges like high costs and scant charging infrastructure. The guests highlight the government's ambitious goal to import 500,000 EVs by 2030 and emphasize the economic benefits for urban commuters, particularly gig workers, in a rapidly evolving transportation landscape.
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Ethiopia's EV Policy Motivations
- Ethiopia's EV policy is rooted in environmental concerns and economic needs.
- The country aims to reduce fuel dependency and capitalize on its cheap electricity potential.
Power Cuts and Hydroelectric Potential
- Ethiopia is banking on its vast hydroelectric potential, including a dam on the Nile, to provide cheap electricity for EVs.
- However, power cuts remain frequent, even in major cities like Addis Ababa.
Car Ownership and Affordability
- Car ownership in Ethiopia is low due to high prices and taxes.
- The high cost of EVs, despite some tax exemptions, poses a challenge to wider adoption.