Africa-Press – South-Sudan. Electric vehicles in Africa have benefited from the war in Iran, with rapid growth in the sector amid rising fuel prices and shortages in some countries, prompting citizens to seek cleaner and more affordable transportation options.
Africa imported 44,358 electric vehicles from China in 2025, according to data from a local source, compared to 19,386 vehicles in 2024.
These imports, valued at over $200 million, reflect the increasing demand for electric vehicles, particularly in Ethiopia after it banned the import of new gasoline and diesel vehicles in 2024.
As the war with Iran continues, the fuel shortage crisis in Ethiopia worsens, negatively impacting transportation systems and daily life, while enhancing efforts to reduce costly oil and gas imports and strengthen energy security.
Electric Vehicle Industry in Ethiopia
Ethiopia is one of several African countries aiming to build its own electric vehicle industry.
Official data indicates that there are 17 electric vehicle assembly plants under construction in Ethiopia, with plans to increase this number to 60 by 2030, as part of a broader strategy to localize production and reduce costs.
Currently, there are over 115,000 electric vehicles on Ethiopian roads, representing about 8% of the national vehicle fleet.
Ethiopia spends approximately $4.2 billion annually on fuel imports, putting pressure on its foreign currency reserves.
The Minister of Trade and Regional Integration, Kasahun Gofe, stated that the country also spends up to $128 million monthly to subsidize fuel, while shipments have decreased by over 180,000 metric tons due to import disruptions caused by the closure of the Strait of Hormuz, which was a shipping route for about one-fifth of the Gulf region’s oil before the war.
The government has intensified efforts to encourage faster adoption of electric vehicles, describing them as a key means to address external supply shocks.
The Executive Director of The Electric Mission, Hiten Parmar, said, “From a general perspective, this is sustainable… By replacing imported fuel with locally generated electricity, Ethiopia enhances its position in energy security.”
Transition to Electric Vehicles in Africa
In the transition to electric vehicles in Africa, Ethiopia accounted for one-third of imports from China in 2025, surpassing other major markets such as South Africa, Egypt, Morocco, and Nigeria, according to a report from a local source.
Egypt, South Africa, and Morocco are also transitioning towards electric vehicle use, adopting a mix of political incentives, investment in manufacturing capabilities, and clean energy.
Policy and investment official at the African Electric Mobility Alliance, Bob Waisonga, stated, “This transition is beginning to alleviate pressure on fuel demand.”
He added, “This means that over 100,000 car owners are no longer directly exposed to fluctuations in fuel prices… in the medium and long term, this provides protection from global oil price volatility.”
For those who have switched to electric vehicles, the savings are significant, as Waisonga noted: “An electric vehicle owner now spends about $4 monthly on charging, compared to about $27 previously spent on fuel; for public transport operators, the difference is even more pronounced.”
Ethiopia has a unique advantage, as over 90% of its electricity comes from renewable sources, particularly hydroelectric and solar power.
The Grand Ethiopian Renaissance Dam, the largest hydroelectric project in Africa, is expected to double its electricity production, although this project has sparked a decade-long dispute over water supplies with Egypt and Sudan.
Parmar added, “This level of production provides a foundation for electric transport, allowing electric vehicles to operate on clean, locally produced energy instead of costly imports.”
He continued, “Through the gradual adoption of electric vehicles, intensive fuel import expenses can be reduced and redirected towards other vital developmental needs.”
Challenges to Electric Vehicle Adoption in Ethiopia
Parmar pointed out that the transition to electric vehicles in Ethiopia faces some significant structural challenges. He said, “The technology is already mature, but the challenge lies in deploying it quickly enough.”
Ethiopia is deploying fast-charging stations in its capital, Addis Ababa, but scaling this up nationwide will take time and investment.
Waisonga explained that “the biggest obstacle is electricity distribution in remote areas; although Ethiopia has a surplus in electricity generation, reliably delivering this electricity to where it is most needed, especially outside Addis Ababa, remains a challenge.”
Frequent power outages and delays in connecting high-capacity charging stations have slowed the necessary infrastructure build-out, even as demand for electric vehicles increases.
Waisonga added, “The charging infrastructure remains heavily concentrated in the capital and along a few roads, which limits electric vehicle use in specific areas and creates bottlenecks as demand grows.”
Affordability remains a major barrier; while operating costs have decreased, electric vehicle prices are still high compared to average incomes.
Waisonga stated, “The purchase price remains out of reach for many; at the same time, restrictions on fossil fuel vehicles have driven up the prices of used cars, creating additional barriers.”
This situation could have unintended social consequences if not managed carefully.
Experts confirmed that the long-term path remains clear, and the low operating and maintenance costs of electric vehicles could gradually reduce transportation costs, alleviating the pressure of declining commodity prices and improving access to economic opportunities.
Ethiopia is also looking to learn from the experiences of countries like China and Norway, where political support, investment in infrastructure, and consumer incentives have accelerated the adoption of this technology.
