Fuel shortages and high prices accelerate EV adoption across Africa, led by Ethiopia

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Use of electric vehicles in Africa is rising rapidly, led by Ethiopia, as fuel shortages and soaring prices force governments and residents to look for alternatives to imported oil and gas, the Associated Press reported. As the Iran war drags on, the pressure on energy supplies is rippling through transport systems and daily life, strengthening the push for electrification while raising questions about charging networks and vehicle affordability.

AP reported that Ethiopia has driven its EV expansion in part through policy. The country has used a ban on new imports of gas and diesel-powered vehicles that it imposed in 2024, alongside a broader effort to accelerate EV adoption as a hedge against external supply shocks.

On the cross-continent supply side, the AP report cited China import data showing that African countries imported 44,358 electric vehicles from China in 2025, up from 19,386 in 2024. The report said the shipments were valued at over $200 million and that Ethiopia became a major destination, with other key markets including South Africa, Egypt, Morocco and Nigeria.

Ethiopia’s government also linked the EV push to the mounting cost of fuel and the strain on foreign currency. The Associated Press reported that Ethiopia’s minister of Trade and Regional Integration, Kassahun Gofe, said the country spends about $4.2 billion annually on fuel imports and as much as $128 million monthly on fuel subsidies.

Gofe also said shipments fell short by more than 180,000 metric tons as imports were disrupted by Iran’s effective closure of the Strait of Hormuz, which the report said is a shipping route for about a fifth of oil from the Gulf region before the war. In the AP account, Ethiopia framed EV adoption as a buffer against that kind of external disruption, emphasizing energy security as well as cost control.

The AP report quoted Hiten Parmar, executive director of South Africa-based The Electric Mission, arguing that Ethiopia’s approach is sustainable. “From a general perspective, it is sustainable,” Parmar said, adding that replacing imported fuel with domestically generated electricity helps Ethiopia strengthen its energy security position.

Parmar also pointed to the country’s power mix as a strategic advantage. AP reported that more than 90% of Ethiopia’s electricity comes from renewable sources, mainly hydro and solar, and said the Grand Ethiopian Renaissance Dam—described as Africa’s largest hydroelectric project—was expected to double power generation, even as the dam has fueled a decade-long dispute over water supplies with downstream Egypt and Sudan.

Parmar told AP that the “foundation for electrified transport” comes from locally generated clean energy. He said that enables EVs to be powered by domestic electricity rather than costly imports and that gradually adopting EVs could reduce the intense fuel import expenditure, redirecting it toward other development needs.

Across Africa, AP reported that Egypt, South Africa and Morocco are also advancing EV transitions through combinations of policy incentives, investments in manufacturing capacity and support for clean energy. Bob Wesonga, policy and investments lead at the Africa E-Mobility Alliance, said the shift is beginning to ease pressure on fuel demand and reduce the number of people exposed directly to pump-price shocks.

AP quoted Wesonga on the household and operator benefits he associates with EV switching. He said “That’s over 100,000 vehicle owners who are no longer directly exposed to pump price shocks,” and he added that in the medium to long term the change could create a buffer against global oil volatility. For those who have switched, he said, “A private EV owner now spends roughly $4 a month on charging compared to about $27 previously spent on fuel,” and he said savings for public transport operators are even more pronounced.

Even as adoption grows, the AP report said charging infrastructure remains a structural obstacle. Parmar said the technology is already mature, but the challenge is building it out fast enough. Wesonga said the biggest hurdle is the “last-mile power distribution,” describing ongoing difficulty in getting power reliably to areas outside Addis Ababa despite Ethiopia’s electricity generation capacity.

Wesonga also said blackouts and delays in connecting high-capacity charging stations have slowed infrastructure construction even as EV demand rises. He described charging infrastructure as “still heavily concentrated in the capital and along a few corridors,” limiting e-mobility to specific areas and creating bottlenecks as adoption scales.

Affordability is another constraint that could shape how quickly EVs spread. AP reported that Ethiopia is planning to build its own EV industry, citing official data that show 17 electric vehicle assembly plants in the pipeline and plans to raise that number to 60 by 2030. The report said the broader strategy aims to localize production and reduce costs, but that the purchase price remains out of reach for many residents even if operating costs are lower.

Wesonga told AP that restrictions on fossil fuel vehicles have also pushed up the cost of used cars, which can create additional barriers to EV entry. He and Parmar both suggested that social impacts need planning as the transition unfolds—Parmar said “A national fleet transition is always gradual,” with existing combustion vehicles likely to remain in use for some time, and livelihoods tied to the older system requiring attention.

The AP report said both experts still see a clear longer-term trajectory: lower operating and maintenance costs for electric vehicles could reduce transport costs over time, potentially improving access to economic opportunities and lowering the prices of goods carried by the transport system. Ethiopia and other countries, AP reported, are looking for lessons from places such as China and Norway, where policy support and infrastructure investment have helped accelerate adoption.

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