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Electric cars overtake gas-powered cars in Addis Ababa

Electric cars overtake gas-powered cars in Addis Ababa
Credit: Michael Tewelde/Xinhua/Alamy

Ethiopia (Washington Insider Magazine) – Electric vehicles (EVs) are fast gaining ground in Addis Ababa, Ethiopia, as fuel shortages and rising prices affect gas-powered cars. Mikial Belayneh, an electric car owner in the Ethiopian capital, no longer has to wait in long lines at gas stations thanks to his Toyota bZ4X, which has a range of two days on a single charge. This change underscores a broader trend towards more environmentally friendly means of transportation in the city.

There are presently about 100,000 e-vehicles on Ethiopian roads, and the number is rising rapidly. By 2032, the Ethiopian government hopes to have more than quadrupled this figure. This aggressive goal comes after the government made history earlier this year by becoming the first nation to outlaw the import of passenger automobiles with gas engines. Before the ban, the tax on gas vehicles was up to 200% before they were banned, while the import tax for fully assembled EVs was just 15%,

The tax incentives have also boosted local EV manufacturing. Belayneh Kindie Group, an Ethiopian company, uses parts imported from China to construct electric vehicles (EVs) because EV component tariffs are almost nonexistent. Local producers are increasing manufacturing to keep up with the increased demand for electric cars.

Renewable Energy and Environmental Benefits

According to CNN, Ethiopia is leaning hard into EVs in part because importing fuel is expensive, and 96% of the country’s electricity comes from clean hydropower – a dual win for the country’s finances and the environment. The country’s strategy to leverage its renewable resources aligns with its broader environmental goals, reducing dependence on costly imported fuel.

Global Response and Regional Developments

Ethiopia’s decision to ban gas-powered car imports was unexpected and remains unique in the region. Other African countries are also making strides in EV adoption, though without such stringent measures. In Kenya, for instance, the introduction of tax incentives led to a 500% increase in electric motorbikes in Nairobi within a year. The city is also seeing growth in electric public transportation, including buses.

Challenges and Future Outlook

Despite the progress, challenges remain. The high cost of electric vehicles indicates that only individuals who have higher incomes can acquire them. Efforts are ongoing to expand access to electric transportation through investments in electric buses and public transport options. Ethiopia’s vehicle fleet has already seen a notable rise in EVs, with nearly 10% of vehicles being electric within two years of the government’s initiative.

As Ethiopia continues to lead with its bold environmental policies, the success of its EV strategy could serve as a model for other nations. However, significant infrastructure development and government support are needed across the continent to further accelerate the transition to electric mobility.

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