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Home Economy Transport

Ethiopia’s EV Market Accelerates as Global Investors Show Interest

These initiatives are complemented by investment incentives designed to attract global players and stimulate domestic innovation

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Ethiopia’s electric vehicle (EV) sector is rapidly gaining momentum, attracting increasing attention from international manufacturers and investors. According to the country’s State Minister of Transport and Logistics, Bareo Hassen, Ethiopia’s commitment to clean energy and sustainable transport is positioning it as a promising hub for EV development in Africa.

In a recent interview with the Ethiopian News Agency (ENA), Hassen highlighted the government’s multi-faceted approach to advancing electric mobility.

“Ethiopia has launched encouraging measures aimed at decreasing reliance on fossil fuels and enabling the transport and logistics sector to leverage the nation’s potential renewable energy resources,” he said.

Central to this effort is the National Electric Vehicle Strategy, which outlines policies that promote local assembly, the conversion of fossil-fuel vehicles to electric alternatives, and the adoption of emission-reducing technologies. These initiatives are complemented by investment incentives designed to attract global players and stimulate domestic innovation.

As a result, the number of electric vehicles on Ethiopian roads now exceeds 115,000. Over 15 companies are currently involved in assembling EVs locally, and this number continues to grow annually. Hassen noted that the combination of supportive policies and Ethiopia’s abundance of renewable energy—particularly hydropower—makes the country uniquely attractive to international stakeholders.

“Numerous international electric vehicle manufacturers and suppliers are now expressing significant interest in investing in this sector,” Hassen stated, adding that discussions with global companies are already underway.

The government’s focus on transitioning to cleaner transport is not only environmental but also economic. Reducing fuel imports and building a local EV industry offers the potential to boost job creation, industrial growth, and technological advancement.

With ongoing support and policy clarity, Ethiopia appears well-positioned to emerge as a leading EV hub in Africa, signaling a transformative shift toward sustainable mobility and energy independence.

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