Ethiopia has emerged as Africa’s electric vehicle leader, with more than 115,000 EVs on its roads, or about 8% of the national fleet, after the government banned new imports of gasoline and diesel vehicles in 2024. The rapid adoption has been accelerated by fuel shortages and soaring prices tied to the Iran war, which has disrupted oil shipments through the Strait of Hormuz and strained the country’s foreign currency reserves.
Africa’s imports of electric vehicles from China more than doubled last year, reaching 44,358 units valued at over $200 million, according to data from China’s Commerce Ministry. Ethiopia accounted for roughly a third of those shipments, outpacing South Africa, Egypt, Morocco and Nigeria as the continent’s largest EV importer.
Ethiopia spends about $4.2 billion on fuel imports each year, and the government subsidizes fuel by as much as $128 million a month, Trade and Regional Integration Minister Kassahun Gofe said in a statement. Shipments have fallen short by more than 180,000 metric tons as the effective closure of the Strait of Hormuz chokes off supply from the Gulf region. “The government has redoubled its campaign for quicker EV adoption, framing it as a critical buffer against external supply shocks,” Gofe said.
Ethiopia holds an unusual advantage: more than 90% of its electricity comes from renewable sources, mainly hydropower and solar. The Grand Ethiopian Renaissance Dam, Africa’s largest hydroelectric project, is expected to double the country’s power generation, although it has fueled a decade-long dispute with downstream Egypt and Sudan over water supplies. “That scale of generation creates a foundation for electrified transport,” said Hiten Parmar, executive director of the South African-based Electric Mission. “It allows EVs to be powered by locally produced clean energy, rather than costly imports.”
For drivers who have made the switch, the savings are significant. A private EV owner spends about $4 a month on charging, compared to roughly $27 previously on fuel, according to Bob Wesonga, policy and investments lead at the Africa E-Mobility Alliance. “For public transport operators, the difference is even more striking,” he said. “That’s over 100,000 vehicle owners who are no longer directly exposed to pump price shocks. In the medium to long term, this creates a buffer against global oil volatility.”
The transition faces formidable infrastructure hurdles. Ethiopia is deploying ultra-fast charging hubs in the capital, Addis Ababa, but scaling them nationwide will take time and investment. “The biggest hurdle is the last-mile power distribution,” Wesonga said. “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 stations have slowed construction, concentrating charging options in the capital and along a few corridors.
Affordability also remains a barrier. While operating costs are lower, EV purchase prices are still high relative to average incomes. Ethiopia plans to build up to 60 assembly plants by 2030, with 17 already in the pipeline, in an effort to localize production and bring down costs. But restrictions on fossil-fuel vehicles have pushed up prices of used cars, creating additional burdens for some households. “The purchase price is still out of reach for many,” Wesonga said. “At the same time, restrictions on fossil fuel vehicles have pushed up the cost of used cars, creating additional barriers.” Parmar added that a national fleet transition is gradual, and existing combustion vehicles will remain in use for some time, requiring attention to livelihoods tied to that system.
Still, experts say the long-term trajectory points toward electric transport. Lower operating and maintenance costs could reduce transport costs over time, easing the price of goods and improving access to economic opportunities. Ethiopia is also studying policy lessons from China and Norway, where incentives and infrastructure investment drove rapid adoption. “This is not just about transport,” Wesonga said. “It’s about reshaping how the country uses energy, and who benefits from that shift.”