Ethiopia inaugurated its biggest electric vehicle factory in Debre Berhan in the Amhara region on Tuesday, as part of an ambitious strategy to turn the country into a leading player in green mobility on the continent.
But this latest development comes as the Ethiopian government faces economic challenges and limited financial capacity that has delayed the completion of government priority projects scattered around the country. This includes the $5 billion Grand Renaissance Dam, which would help upgrade the electricity network needed to power a rising influx of EVs.
With the Horn of Africa nation facing a large economic deficit, skeptics are questioning if Ethiopia has the capability or the resources to execute such an ambitious project. Addis Ababa is displacing citizens and gutting neighborhoods to pave the way for skyscrapers and EV charging stations, part of an effort to make the capital “The East African Dubai.”
Ethiopia’s 10-year Perspective Development Plan calls on the government to import 4,800 electric buses and 148,000 electric cars. Last year, Ethiopia banned the import of non-electric cars and offered a new tax exemption for the import of electric cars as part of a green legacy project initiated by Prime Minister Abiy Ahmed.
The local automobile market is currently saturated with Chinese imported electric vehicles, with Chinese brands such as BYD and Jetour gaining popularity.
The Ethiopian Ministry of Transport announced last month that it had managed to bring in more than 100,000 electric cars and built 60 charging stations across the capital.
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