Subscribe
It is impressive the way Ethiopia has aggressively positioned itself as a leader in zero emissions commuting in the Global South. Faced with mounting economic pressures and emissions challenges, this country has made a deliberate policy choice for e-mobility strategy to eliminate internal combustion engines (ICE), reduce reliance on fossil fuels, clean its urban air, and stabilise its economy.
Ethiopia is also fundamentally reshaping its urban fabric by intertwining zero-emission electrification, mass transit expansion, and non-motorised transport (NMT) infrastructure into a single, cohesive strategy. This is the blue print of change that needs to be upscaled across the Global South.
In the face of the raging West Asia oil crisis, Ethiopia is already reaping the rewards of this strategic shift. By reducing oil reliance, the country is stepping towards energy sovereignty. By forcing a shift to electric vehicles (EVs) and upscaling integrated public transport along with walking and cycling infrastructure, Ethiopia capitalises on its abundant, hydropower-dominated electric grid (over 90 per cent renewable), lowering the need for hard currency to power its vehicles.
As is already known, in a radical policy move in January 2024, Ethiopia had banned the import of ICE vehicles exempting only ambulances, military vehicles, and heavy machinery. This was primarily conceived as an energy security measure to hedge against fiscal drain as it was spending billions of dollars annually to only import fuels, with the transport sector devouring over 90 per cent of that supply. This had created chronic foreign exchange shortages that was not sustainable.
According to Yizengaw Yitayih of the Ministry of Transport and Logistics of Ethiopia, this aligns with Ethiopia’s goals for its ‘E-Mobility Strategy and Implementation Plan (2025-2030). The 2030 target aims to meet 80 per cent electrification of new vehicles, 100 per cent of two- and three-wheeler segments, 100 per cent of new government vehicles, 100 per cent of new public transport and 30 per cent of new e-vehicles that are locally produced. This further aims to deploy 500,000 total EVs and 4,855 E-buses; and install 2,230 charging stations nationwide (1,176 in Addis Ababa, 1,054 in regional areas). This was highlighted in the Pan Africa convening that was organised by the Centre for Science and Environment along with the National Environment Management Authority (NEMA) in Nairobi in the month of March.
Already, this step towards energy sovereignty has led to substantial cost reductions for both consumers and public transit networks in Ethiopia. The Ministry of Transport and Logistics estimates that an average EV owner who previously spent roughly 4,000 Birr (US$27) a month on fuel now spends the equivalent of just US$4 on electric charging. Moreover, a recent assessment of the Addis Ababa city bus enterprise’s Shegole depot revealed significant efficiency gain. Operating 30 diesel-powered buses costs over 11 million Birr per month in fuel. In stark contrast, 30 equivalent e-buses consume only an average of 1.5 million Birr in electricity monthly.
Due to these firm policy interventions, the EV registration in Ethiopia has surged by more than 16 times between 2022 and 2025 — though from a small base. It has been pointed out by Yenus Tobiaw
of the Ethiopian Customs Commission that to accelerate the transition, the Ethiopian government has instituted strong financial incentives. EVs—whether completely knocked down (CKD), semi-knocked down (SKD), or completely built up (CBU)—along with their charging equipment, are fully exempt from customs taxes. This aggressive tax structuring encourages both importers and local assemblers, driving a steady increase in EV registrations over the past four years.
To anchor this new industrial ambition, the government’s strategic plan includes the construction of an EV and components manufacturing and assembly centre, an EV research centre, and a specialised EV Technology Park. This EV rollout is catalysing localisation of EV manufacturing and assembly.
To sustain this fleet, charging infrastructure is scaling up gradually including home charging, public stations, and captive charging facilities. The strategic placement of these stations mandates highway coverage every 50km and fast-charging capabilities for large vehicles every 120km, alongside installations near key public facilities like malls and restaurants. Electricity supplied to public and captive stations from the national grid is billed at the general tariff category, while the final cost to consumers charging their vehicles remains market-based.
To ensure these targets are met, the government is prioritising heavy infrastructure projects. This includes the construction of EV and component manufacturing centres, an inspection centre for battery performance, and a dedicated EV Technology Park. Execution and progress are overseen by a structured hierarchy. A Steering Committee and a Technical Committee guide the initiative, while dedicated monitoring and evaluation clusters manage specific domains such as Infrastructure, finance and customs, and research and innovation.
Ethiopia has a tri-pillar net-zero strategy that relies not only on transitioning to EVs but also expanding electric public transport including e-buses and high-capacity transit networks. This has begun with the deployment of 120 e-buses and over 400 Midi and Mini-electric buses locally assembled. Ethiopia is rapidly expanding its e-bus network across Addis Ababa and various regional cities. It is rolling out robust infrastructure for walking and cycling through a massive corridor development project expanding across 75 cities.
There is visible transformation of Addis Ababa city with extensive redeveloped road networks that are designed for all road users — pedestrians, cyclists and public transport users. Launched in late 2022, Ethiopia’s Corridor Development Project is an ambitious urban overhaul that began in 58 cities before targeting a phase two expansion across 75 cities nationwide.
Ethiopia purposefully integrates expansion of road networks with dedicated infrastructure for creating safe, accessible pathways for pedestrians and cyclists, public transport users while redesigning and rejuvenating public spaces and green areas.
Crucially, the project blends public transit upgrades with sweeping municipal and structural improvements. Modernised drainage systems are installed to prevent flooding, alongside upgraded street lighting, integrated telecommunication poles, integrated parking, and pedestrian walkways. Planners are actively reclaiming public space by creating over 70 green centres, rehabilitating neglected riversides, and building public squares for community events. Existing building exteriors along these corridors are simultaneously renovated.
Instead of vague policy goals, Ethiopia could adopt concrete frameworks, such as the Ethiopia NMT Strategy 2020-2029 and the Ethiopia Urban Street Design Manual. This gave local agencies the blueprints needed to build people centric road design — wide footpaths, protected bike lanes, and redesigned intersections. It involved tactical urbanism. Car-free days were organised to enable city-wide street experiments for inclusive design. This addressed the mismatch between how people actually moved and who the roads were built for. Majority in Addis Ababa walked, cycled and used public transport. The government also considered pedestrian fatalities and economic cost of congestion.
While there was technical capacity and funding support from the World Bank, UN-Habitat, UN Environment, and the Institute for Transportation and Development Policy, the critical point is that the government was willing to execute this kind of urban transformation.
However, there were concerns and media reports about the displacement of poor neighbourhoods that resulted in gentrification of the urban space.
Simultaneously, Ethiopian cities are relying heavily on expanding mass transit systems. The Addis Ababa Light Rail Transit (AALRT) system spans 34.25 km and operates with a design capacity to handle 60,000 to 80,000 passengers per hour during peak times. Concurrently, the Bus Rapid Transit (BRT) project is deploying massive infrastructure lines (such as B3 and B4 covering 36.5 km) to provide inclusive mobility to 400,000 residents with committed funding. In response to the current oil shock, Ethiopian cities are intensifying e-bus services to increase ridership.
Despite rapid progress, there are several barriers that are slowing down the e-mobility transition. Key challenges include critical infrastructure limitations, particularly regarding the lack of after-sales service centres and battery end-of-life management. Financial constraints are a major hurdle; banks require collateral they are unwilling to waive, insurance companies remain suspicious of the technology, and there is limited support from international donors for local start-ups. Furthermore, there is limited land allocated for establishing charging stations and training centres, alongside significant capacity and skill gaps in EV maintenance and daily operations. Research and development focusing on technology adoption also remains severely limited
Crucially, by inter-connecting EV transition with massive investments in electric mass transit and inclusive, walking and cycling corridors, the country has prioritised equitable, pro-people mobility over car-centric planning—demonstrating exactly how developing economies can achieve energy sovereignty and sustainable urban renewal simultaneously.
