Ethiopia has taken a significant step towards sustainable transportation with the inauguration of its largest electric vehicle (EV) factory in the city of Debre Berhan, located in the Amhara region. The facility is projected to have an annual production capacity of approximately 1,000 electric cars, signaling a noteworthy advancement in the country’s automotive industry.
The establishment of this EV factory represents a substantial investment of over $52 million by local entrepreneur Belayneh Kinde. This move underscores the growing interest in renewable energy and sustainable transportation solutions within Ethiopia.
Previously, in 2020, renowned Ethiopian businessman and celebrated Olympian Haile Gebreselassie had embarked on a venture to start an EV assembly plant in collaboration with the automotive giant Hyundai. However, this partnership was short-lived and dissolved after just a year due to the challenges of securing foreign currency, which was necessary for importing the required materials for assembly.
Ethiopia’s economy has faced several hurdles, which have led to the deferral of key projects, such as the ambitious $5 billion Grand Renaissance Dam. This hydroelectric dam is considered a linchpin for enhancing the country’s electricity infrastructure, which is vital for supporting an increase in electric vehicles.
In alignment with its 10-year Perspective Development Plan, Ethiopia has set ambitious goals to transform its public transportation system. The plan includes the importation of 4,800 electric buses and 148,000 electric cars. In a bid to accelerate this green transition, the government, last year, implemented a ban on the import of non-electric cars and introduced tax incentives for electric vehicles.
Furthering its commitment to environmental sustainability, the Ministry of Transport has recently made a significant announcement, revealing that over 100,000 electric cars have been imported into the country. Additionally, the capital city, Addis Ababa, has seen the installation of 60 charging stations. These developments are crucial steps in fostering the adoption of electric vehicles and propelling Ethiopia’s green movement into a new era of growth and innovation.
