Ethiopia bans import of private gas-powered vehicles, but transition to electric vehicles is not an easy road

ADDIS ABABA, Ethiopia — As the price of fuel in Ethiopia skyrocketed earlier this year, Avgacheu Seleshi decided to buy electric car. This is in line with the government’s new efforts to phase out gas-powered vehicles. But a few months later, he doubts whether it was the right decision.

It faces a number of challenges, from erratic electricity supplies in the capital, Addis Ababa, to a shortage of spare parts.

“It was difficult to charge my car,” said the civil servant. “The spare parts imported from China are expensive, only a few mechanics can repair such cars, and the resale value of such cars is low.”

Seleshi’s problems point to broader challenges for Ethiopia. In January, the East African country became the first in the world to ban the import of non-electric private vehicles.

The decision eased pressure on authorities spending scarce foreign currency to subsidize fuel costs, but also reflected growing enthusiasm for electric cars as the world demands more green technology to reduce climate-changing emissions.

Earlier this month, Ethiopia’s government raised fuel prices by up to 8% as part of a plan to phase out all fuel subsidies in Africa’s second most populous country.

Authorities have reported some success in enforcing the ban on non-electric vehicles entering Ethiopia, and more than 100,000 electric vehicles are now imported into the country every month.

The official goal is to increase monthly imports to 500,000 by 2030. By then a large new dam Ethiopia built on the Nile River is expected to generate electricity at full capacity.

Ethiopia’s Prime Minister Abiy Ahmed said in a televised address earlier this year that the Grand Renaissance Dam would begin generating more than 5,000 megawatts of electricity within a year. The authorities say that such power will support the transition to electric vehicles.

For now, many in Addis Ababa, a city of more than 5 million people, doubt that the country will be able to meet its ambitious electric vehicle goals without further necessary infrastructure and services.

The few owners of garages that can fix broken electric cars say they are overwhelmed, while customers say they are being overcharged due to an apparent lack of competition.

“There are two or three garages in Ethiopia that can fix new electric cars, and many consumers don’t know how to take care of such vehicles,” said Jonas Tadelle, a mechanic in Addis Ababa. “As mechanics, we also lack the tools, parts and know-how to repair such cars.”

Currently, many electric cars are sitting in garages and parking lots waiting for parts that are expected to arrive from China.

Ethiopia’s Transport Minister Bareo Hassan Bareo said he believes the country can become a model nation with a legacy of a green economy, with electric vehicles as a key component.

The government will invest in public charging stations, he told the Associated Press, and there are plans to set up a factory to produce batteries for electric cars locally to reduce dependence on imports.

Private efforts included a collaboration between Olympian Haile Gebreselassie and South Korean carmaker Hyundai to produce electric cars in Ethiopia, which has since collapsed. This attempt is believed to have failed due to a search for materials.

Samson Berhane, an economist in Addis Ababa, said the sudden flood of electric cars in the local market, despite poor infrastructure, makes it difficult for customers to adapt comfortably. Some electric cars sell for around $20,000.

“Very few people are willing to take the risk of buying an electric vehicle due to the lack of infrastructure, a lack of mechanics specializing in electric vehicle service, and the market being flooded with Chinese brands that have questionable parts and long-term visibility,” Berhane said. .

But he said he believed Ethiopia was more than capable of powering an expected 500,000 electric vehicles over the next decade while fulfilling its industrial ambitions.

Some Ethiopians are already abandoning electric cars, and the trade in used cars with gasoline engines continues. There are at least 1.2 million vehicles across Ethiopia, and only a small fraction are electric.

Businessman Yared Alemayehu bought a Chinese electric car, which he hoped to use for a taxi service. He knew the car had a mechanical problem, but he believed it could be fixed. The mechanic disagreed.

He eventually sold the car at a loss and bought a 2007 Toyota Corolla, which he believed was more reliable, for the equivalent of $20,000, which included hefty gas vehicle taxes. Taxes may be higher than the cost of importing the car.

“Besides having to charge my old electric car, it was breaking down a lot and the garage was recharging and the queue at the garage was extraordinary for us,” he said.

Taxi driver Dereje Hailu, who had high hopes for his Chinese electric car E-Star when he bought it earlier this year, said his expectations were not met.

“I’m afraid I’ll be stuck with a car like this if I go far from Addis Ababa, where there are no charging stations,” he said.

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