Ethiopia Drives Forward Electric Vehicle Adoption

ADDIS ABABA — The Ethiopian Petroleum and Energy Authority (EPA) announced it is developing a national e-mobility strategy to accelerate the advancement of electric vehicles (EVs) in Ethiopia. The EPA recently organized a panel discussion in collaboration with the Ethio-Germany energy cooperation, focusing on the intersection of electric vehicles and the green economy. The event was attended by ministry representatives, private stakeholders, and other dignitaries.

PEA Director-General Sahrla Abdulahi highlighted that the government is undertaking various initiatives to transform the petroleum sector into a reliable e-mobility sector, contributing to the country’s socioeconomic development. She mentioned the establishment of a national steering committee and efforts to identify opportunities to incentivize private sector engagement in the EV industry.

“The authority has implemented digital payment transactions within the fuel system, processing over 233 billion Birr through electronic transactions in the past two years,” she stated. However, she noted that the expansion of the parallel market has negatively impacted the digital clean transaction system, emphasizing that fuel transaction and monitoring remain a priority focus.

Electricity Sector Technical Regulation Director Bahiru Oljira stressed the need for the government to prioritize the EV sector by developing comprehensive strategic frameworks and policy shifts to stimulate growth. He pointed out that electric vehicles play a crucial role in reducing carbon emissions and fossil fuel dependence, supporting Ethiopia’s innovation and sustainable development goals.

Given Ethiopia’s macroeconomic challenges, including its landlocked status and high fossil fuel consumption, Bahiru highlighted the importance of strengthening the EV-green economy nexus. He noted that Ethiopia spends approximately 4.6 billion USD annually on fossil fuels, affecting the import-export balance.

Mintesnot Gizaw (Asst. Prof.), a researcher and lecturer in Renewable Energy at the Environmental Engineering Department of AAU, emphasized the critical need to leverage Ethiopia’s abundant renewable energy resources. He advocated for the deployment of low-carbon technologies to foster a climate-resilient green economy. He also noted that the EV sector significantly contributes to the nation’s sustainable development goals and job creation.

During the event, recognition awards were presented to high-performing fuel station companies that have successfully adopted digital transaction systems.

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