Addis Ababa — From quiet electric buses navigating busy streets to taxi drivers cutting fuel bills by 90%, Ethiopia is undergoing a remarkable clean energy transformation that is turning heads across the world.
According to Beyond Time News, Addis Ababa introduced 100 new electric buses to its fleet in 2025, serving around 90,000 daily commuters on the city’s rapid transit line. Bus driver Shashe Asemare, who operates one of the new vehicles, sums up the change simply — no exhaust fumes, no engine noise, just a smoother ride for everyone.
Passenger Zeraye Tekelu agrees, calling the electric buses “a step forward for our country.”
The World’s First Gasoline Car Import Ban
Ethiopia made global headlines in early 2024 when it became the first country in the world to ban the import of gasoline and diesel vehicles. Transport Minister Alemu Sime framed the move as a commitment to green development, backed by tax breaks for electric vehicles, 17 EV assembly plants using Chinese parts, and a push toward fully electric public transport including light rail.
But there is a very practical reason behind the shift too. According to Beyond Time News, Ethiopia spent around €4 billion on fuel imports in 2023 and 2024 — a massive burden for one of Africa’s poorest nations, especially after conventional fuel prices more than tripled since 2022.
The Iran war’s impact on global oil markets in March further pushed Ethiopia to accelerate its transition away from fossil fuels.
Impressive Progress So Far
Just over two years since the ban was announced, more than 100,000 of Ethiopia’s 1.2 million registered vehicles are now electric. The government is targeting 500,000 EVs by 2030.
Electric passenger cars already account for over 5% of the total fleet — on par with the European Union — a remarkable achievement for a nation where nearly half of its 110 million people still live without electricity.
Running on Hydropower
Unlike many countries where EVs are charged using coal or gas-generated electricity, Ethiopia runs almost entirely on clean energy. Known as “Africa’s water tower”, the country generates over 96% of its electricity from renewable hydropower.
The recently opened Grand Ethiopian Renaissance Dam — with a capacity exceeding 5,000 megawatts — is expected to more than double the country’s electricity supply, making Ethiopia’s EV boom genuinely green from start to finish.
Real Savings for Everyday Drivers
For taxi driver Abdurahman Ali, switching to an electric Changan hatchback was a game changer.
“Before, I spent 40,000–50,000 birr every month on fuel. Since switching to electric, my monthly costs have dropped to about 5,000 birr. That’s a huge difference,” he said.
With average salaries often below €1,000 a year, the €17,000 starting price of a new EV remains steep for most Ethiopians. But the long-term savings are hard to argue with.
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The Charging Challenge
With EV numbers growing fast, charging infrastructure has become the next big hurdle. There are currently around 500 charging stations across Ethiopia — most concentrated in Addis Ababa — far fewer than what the expanding fleet requires.
Private entrepreneur Ezekiyas Dufera spotted the opportunity and opened a 24-hour charging station complete with a pricing transparency app. Despite occasional power outages, he says business has been strong.
Addis Ababa is now planning to electrify its shared minibus taxi service — a fleet of 8,000 to 10,000 vehicles that carries over two-thirds of the city’s passengers every day — which will push demand for charging infrastructure even higher.
