Ethiopia bans imports of gas-powered private vehicles, but the switch to electric is a bumpy ride

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ADDIS ABABA, Ethiopia (AP) — As fuel prices rose in Ethiopia earlier this year, Ogachew Seleshi decided to buy an electric car. This is in line with the government’s new efforts to phase out gas-powered vehicles. But months later, he began to wonder if it was the right decision.

He faces a range of issues, from erratic electricity supplies in the capital, Addis Ababa, to a scarcity of spare parts.

“Shipping my car has been a challenge,” the government employee said. “Spare parts imported from China are expensive, few mechanics are able to repair such cars, and the resale value of these cars is poor.”

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

The decision eased pressure on authorities spending scarce foreign currencies to subsidize the cost of fuel, but it also reflects growing enthusiasm for electric cars as the world demands more green technologies to reduce emissions causing climate change.

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

The authorities have claimed some success in enforcing the ban on the entry of non-electric cars into Ethiopia, and more than 100,000 electric cars are now imported into the country every month.

The official goal is to increase the monthly import figure to 500,000 by 2030. By then, the new large dam built by Ethiopia on the Nile River is expected to be able to produce energy at full capacity.

In a televised speech earlier this year, Ethiopian Prime Minister Abiy Ahmed said that the Grand Renaissance Dam would begin generating more than 5,000 megawatts of electrical energy within a year. Authorities say such capacity would support the transition to electric cars.

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For now, many in Addis Ababa, a city of more than 5 million people, are skeptical that the country can achieve its ambitious electric vehicle goals without the need for more infrastructure and services.

The small number of garage owners who can repair broken-down electric cars say they are overworked, while customers say they are being overcharged amid an apparent lack of competition.

“There are two or three garages that can repair new energy vehicles in Ethiopia, and many consumers lack awareness on how to take care of these vehicles,” said Yonas Tadel, a mechanic in Addis Ababa. “As mechanics, we also lack the tools, spare parts and knowledge to repair such cars.”

Many electric cars are now parked in garages and parking lots waiting for parts expected to arrive from China.

Ethiopian Minister in charge of Transport, Bariu Hassan Bariu, said he believes the country can be a model country with a legacy of green economy, prioritizing electric vehicles as a key component.

The government will invest in public charging stations, and there are plans to set up a factory to manufacture electric vehicle batteries locally to reduce reliance on imports, he told The Associated Press.

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Private efforts included a collaboration, which has since failed, between Olympian Haile Gebrselassie and South Korean automaker Hyundai to manufacture electric cars in Ethiopia. This effort is believed to have collapsed due to source material.

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

“Very few people are willing to risk purchasing electric cars due to lack of infrastructure, shortage of mechanics who specialize in maintaining electric cars and flooding the market with Chinese brands that have questionable details and long-term vision,” Burhani said. .

But he said he believes Ethiopia is more than capable of providing electricity to the 500,000 electric cars expected there over the next decade while achieving its industrial ambitions.

Some Ethiopians have already given up on electric cars, and the used trade in gasoline-powered vehicles continues. There are at least 1.2 million vehicles across Ethiopia, and only a small portion of them are electric cars.

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Businessman Yared Alemayehu bought a Chinese-made electric car that he hoped to use for taxi service. He knew the car had a mechanical defect, but he thought it could be fixed. Mechanic disagreed.

In the end, he sold the car at a loss and bought a Toyota Corolla – a 2007 car that he felt was more reliable – for the equivalent of $20,000, an amount that included heavy taxes on gasoline vehicles. Taxes can be higher than the cost of importing the car.

“In addition to having to charge my old electric car, it would break down often, the garage was overcharging, and queuing in the garage was confusing us,” he said.

Taxi driver Dereji Hailu, who had high hopes for his Chinese-made E-Star electric car when he bought it earlier this year, said his expectations had been dashed.

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

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