Seth Onyango, bird story agency….
Urban commuters in Ethiopia’s capital, Addis Ababa, are trading petrol-powered two-wheelers for sleek, battery-powered motorbikes.
Long lines at fuel stations are becoming irrelevant for “e-riders” who are embracing an electric future propelled by convenience and cost savings.
The shift comes with an innovative model featuring battery-swapping stations, offering a practical fix to the country’s patchy power infrastructure and high vehicle costs.
Electric motorbikes like those being rolled out by local startups such as Japanese firm, Dodai, are even gaining traction as a viable alternative to electric cars.
Ethiopian Investment Holdings (EIH), the government’s investment arm, and Dodai are spearheading plans to roll out 100 electric motorcycle battery swap stations within a year, with an ambitious target of 300 in three years.
“The battery swapping stations will allow riders to quickly swap out depleted batteries for fully charged ones, minimizing downtime and making electric mobility even more convenient for users,” Dodai chief executive Yuma Sasaki told Connecting Africa.
“This model is expected to accelerate the adoption of electric vehicles across the country by making charging infrastructure more accessible and practical.”
Last September, Dodai secured US$7 million in funding to grow the country’s electric vehicle sector.
While the government’s landmark ban on the importation of internal combustion engine (ICE) vehicles was meant to drive electric car adoption, the steep price of electric cars, often exceeding US$25,000, has left many Ethiopians priced out.
In contrast, electric motorbikes, which cost significantly less, just north of US$1,100 are emerging as a more affordable entry point into sustainable transportation.
Statista estimates indicate electric motorbikes now make up 3.8% of the total motorcycle market in the Horn of Africa state.
Starting January 2024, Ethiopia became the first nation globally to prohibit the import of non-electric private vehicles in an unprecedented move.
The move aims to reduce the country’s reliance on fuel imports, which amounted to over US$6.2 billion in 2023, and to promote environmental sustainability.
The government’s initial target was to import approximately 148,000 electric cars and 48,555 electric buses by 2030.
However, due to rapid adoption, these goals were met within the first two years. Consequently, the target has been revised to 439,000 electric vehicles by 2030.
There are around 100,000 EVs in Ethiopia so far, making it easily one of the biggest markets for battery-powered automobiles in Africa.
To turbocharge this transition, the Ethiopian government offers incentives like duty-free EV parts for local assembly, a 5% tax on semi-assembled EVs, and a 15% tax on fully assembled ones.
These rates are significantly lower compared to those for gasoline-powered vehicles, encouraging both consumers and businesses to embrace electric mobility.
In response to these challenges, the private sector is stepping in to fill the gaps. Companies like Belayneh Kindie Metal Engineering Complex are assembling electric minibuses locally, using components imported from China.
Since mid-2023, the company has assembled 216 electric minibuses, half of which have already been sold to transport service providers and government agencies.
Meanwhile, Ethiopia plans to install a total of 2,226 charging stations across the country, with 1,176 in Addis Ababa and 1,050 in regional cities.
There are also plans to establish a local EV battery manufacturing plant to reduce reliance on imports.
bird story agency
