Wednesday, November 6, 2024

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 the price of fuel soared in Ethiopia earlier this year, Awgachew Seleshi decided to buy an electric car. That aligned with the government’s new efforts to phase out gas-powered vehicles. But months later, he’s questioning whether it was the right decision.

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

“Charging my car has been a challenge,” the civil servant said. “Spare parts that are imported from China are expensive, few mechanics are able to fix such cars and the resale value of such cars is poor.”

Seleshi’s troubles point to wider challenges for Ethiopia. In January, the East African country became the first in the world to ban the importation of non-electric private vehicles.

The decision eased pressure on authorities who spend scarce foreign currency to subsidize the cost of fuel, but it also reflected growing enthusiasm for electric vehicles as the world demands more green technologies to reduce climate-changing emissions.

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

Authorities have claimed some success in enforcing the ban on non-electric vehicles entering Ethiopia, and more than 100,000 electric cars are now being imported into the country each month.

The official target is to increase the monthly import figure to 500,000 by 2030. By that time, a big new dam Ethiopia has built on the Nile River is expected to be producing power at full capacity.

Ethiopian Prime Minister Abiy Ahmed, in a televised address earlier this year, said the Grand Renaissance Dam will start generating more than 5,000 megawatts of electric power within a year. Authorities say such capacity would support the transition to electric vehicles.

For now, many in Addis Ababa, a city of more than 5 million people, are doubtful the country can achieve its ambitious goals for electric vehicles without further needed infrastructure and services.

The few garage owners who can fix broken electric cars say they are overwhelmed, while customers say they are being overcharged amid an apparent lack of competition.

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

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