It is an undeniable fact that using electric vehicles instead of fuel ones can provide a country with dual advantage: to build green economy and tackle climate change. Taking this concrete reality into account, Ethiopia is actively pursuing a transition to electric vehicles aiming at increasing the number of electric vehicles via locally producing them. The effort geared towards promoting initiatives like banning fuel-powered car imports, promoting electric vehicles sales and charging infrastructure as well as attracting foreign investment in the sector is a testimony for such a lucrative commitment.
Interestingly, Ethiopia is emerging as a leader in Africa’s green transportation sector, with ambitious government initiatives aimed at boosting domestic electric vehicle production. Ministry of Transport and Logistics recently stated that the goal is to accelerate electric vehicle production to reduce fuel costs and build a greener environment. Ethiopia is accelerating its transition to electric vehicles, with a bold goal of reaching 95% electric vehicle adoption within the next decade. It is developing a plan to bring up to 500,000 electric vehicles into use within the next decade.
As learned from the Ministry of Transport and Logistics, it has been carrying out unreserved efforts towards modernize transport and logistics service delivery through digital technology expansion. Ministry of Industry has also been diligently working to ensure that electric vehicles are produced domestically and battery charging infrastructure expanded. Following this and other remarkable initiatives, the transport sector has a role in building a green economy peculiarly through utilizing electric vehicles. This bold move helps Ethiopia save over 4 billion USD it spends annually for the purchase of fuel.
For the purpose of well expanding such a green transportation scheme, a Leading Chinese automotive manufacturer, Guangzhou Automobile Group (GAC), has entered the Ethiopian electric vehicle market and marking a crucial step in the country’s transition towards sustainable transportation.
Needless to state, the Ethiopian government has taken very courageous measures, particularly to open up the economy and more particularly also to attract foreign investment into the country, and some tangible actions which actually show the level of commitment as well as how serious the Ethiopian government is to attract foreign investment to Ethiopia.
Besides, the Ethiopian government’s strong emphasis on electric vehicles and green mobility is a significant factor in for investors’ decision to enter the market. Not only does Ethiopia exhibit commitment to well promote green transportation which backs the proliferation of green economy but it has also open doors to a range of investors in engage in numerous sectors to make a difference in all aspects for common growth.
The electricity-to-fuel cost ratio would definitely help investors like the aforesaid one build confidence in the new energy vehicle market. This is really a momentous hallmark of green urban mobility in the country. Yes, capitalizing on electric vehicles would be instrumental in developing high-quality, sustainable transportation solutions and invigorating Ethiopia’s expanding electric vehicle market.
The good thing is not only would utilizing renewable energy reduce air pollution but it also allows the high cost of fuel to be used for other infrastructure construction and subsidiary development strata. The major steps taken by the Ethiopian government to create wider space for expanding the use of electric vehicles are, among others, banning of importation of used fuel vehicles, importation of electric vehicles, change of existing fuel cars into electric vehicles, and establishment of charge stations at various locations.
In a nutshell, as the demand for transportation is increasing with population growth, urbanization and economic development, expanding the transportation sector especially focusing on environment friendly transportation means like electric vehicles could not be an option but a mandatory portion. In so doing, it would be possible to create special opportunities to utilize green transportation.
THE ETHIOPIAN HERALD TUESDAY 20 MAY 2025
