Ethiopia Implements Incentives to Accelerate Electric Vehicle Transition
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Addis Ababa, Dec 26 (NationPress) The Ethiopian government has rolled out a series of incentives aimed at promoting the growth of electric vehicles (EVs) to significantly expedite the nation's shift to electric mobility.
The Ministry of Transport and Logistics announced on Wednesday that a draft national strategy for EV expansion has been formulated. This strategy is anticipated to be put into action soon, following the incorporation of feedback from pertinent stakeholders and subsequent approval.
Bareo Hassen, the state minister of transport and logistics, stated that the government is focused on fostering a supportive environment for both domestic and international enterprises to partake in the import, manufacturing, and assembly of EVs in this East African nation.
The growth of EVs and the necessary infrastructure represents a key initiative aimed at creating a sustainable and eco-friendly transport system, he remarked, urging meaningful engagement from relevant stakeholders in this effort.
In support of the government’s drive toward electric mobility, over 100,000 EVs are currently operational across Ethiopia, with a target to reach 500,000 EVs in the next decade, replacing most vehicles powered by fossil fuels.
Ethiopia is also making strides in boosting EV production and establishing public charging stations, offering various incentives to private investors, including free or leased land for those involved in EV after-sales services, as per the Ministry of Transport and Logistics.
Earlier this year, the government instituted a ban on the importation of gasoline or diesel vehicles to expedite this ambitious green transition, as reported by the Xinhua news agency.
According to preliminary data, there are approximately 1.2 million vehicles in Ethiopia, a substantial portion of which exceeds 20 years of age. The majority of these vehicles are secondhand imports, with visible black smoke often emitted from them, highlighting the urgent need for a shift towards green mobility.
Officials underscored that transitioning to electric mobility would economically benefit Ethiopia by conserving critical foreign currency spent on fuel imports.
By diminishing its reliance on fossil fuels in the transport sector, Ethiopia aims to harness its abundant renewable energy resources to expand the use of EVs.
This week, Chinese EV manufacturer BYD officially commenced operations in Ethiopia in partnership with MOENCO, an automotive distributor, a move anticipated to significantly aid Ethiopia's clean energy transition.
The Belayneh Kindie Metal Engineering Complex, an Ethiopian entity, is assembling EV minibuses and buses locally, utilizing components sourced from China’s Golden Dragon Company to satisfy the growing demand for EVs in the country.
In a recent conversation with Xinhua, Besufekad Shewaye, general manager of Belayneh Kindie, expressed that the company perceives a bright market potential in Ethiopia, attributed to the nation's vast hydropower resources.
