Economic Watch: Chinese electric minibuses boost Ethiopia's transition to green mobility
A worker charges an electric minibus at a factory in Addis Ababa, capital of Ethiopia, March 6, 2024. (Xinhua/Michael Tewelde)
Earlier this month, Ethiopia's Minister of Transport and Logistics Alemu Sime said his country is willing to explore opportunities for producing and assembling EVs with Chinese manufacturers during his discussions with potential Chinese investors.
ADDIS ABABA, Aug. 17 (Xinhua) -- On a typical sunny day in the capital of Ethiopia, Adugna Adamu was advertising his business offering rides from Bole airport to the historic Piazza district with his electric minibus, one of the many now plying the streets of the city.
The introduction of modern electric vehicles (EVs) to public transport was part of the government's campaign initiated earlier this year to ban the import of gasoline or diesel vehicles, in a bid to accelerate its transition to electric mobility in the face of a global fuel price hike.
"These electric vehicles are bigger, quieter, more cost-effective and user-friendly than the conventional minibuses that run on gasoline," Adamu told Xinhua in an interview.
Ethiopia spent 6 billion U.S. dollars on the import of fuel in 2023, over half of which went to fuel vehicles, giving rise to off-the-charts pollution in city centers, the Ethiopian Ministry of Transport and Logistics said.
Of the roughly 1.2 million vehicles in the country, many are over 20 years old and mostly secondhand imports from Gulf states, often seen emitting black smoke from their exhausts.
"I used to drive different types of vehicles, but this one is unique in that it is more comfortable and does not pollute the air," Adamu said as he drove 15 passengers, most of whom were experiencing their first-ever electric vehicle excursion.
A worker assembles an electric minibus at a factory in Addis Ababa, capital of Ethiopia, March 6, 2024. (Xinhua/Michael Tewelde)
The electric minibuses are assembled by local company Belayneh Kindie Metal Engineering Complex, using components imported from China.
The Chinese Golden Dragon Company supplies components for the vehicles to the local company, which assembles both EV minibuses and 12-meter-long big electric buses to meet the growing demand for EVs in Ethiopia.
Though electric minibuses are a fresh addition to Ethiopian public transport services, Besufekad Shewaye, general manager of the local company, is anticipating a promising market for EVs in Ethiopia due to the country's abundant hydroelectricity resources.
"Staring from mid-2023, we imported completely knocked down (CKD) electric vehicles, assembled 216 electric minibuses and made them available to the Ethiopian market," said the general manager, adding that the company has so far sold 50 percent of the assembled electric minibuses to transportation service providers and government offices.
The Ethiopian government aims to import nearly 500,000 electric automobiles to fast-track the country's shift to electric transportation as part of its 10-year development plan that runs from 2021 to 2030.
It has also allowed duty-free import of EV parts to encourage EV adoption and facilitate knowledge transfer. Shewaye noted that assembling EVs locally makes them more competitively priced and can boost local employment.
This photo taken on March 6, 2024 shows an electric minibus on the road in Addis Ababa, capital of Ethiopia. (Xinhua/Michael Tewelde)
At least 75 local workers have been hired to assemble the first batch of 216 minibuses, with Chinese engineers traveling to Ethiopia to provide guidance.
"The Chinese EV engineers have come here and shared with us their skills and knowledge on EV technology both in theory and practice. After we underwent training, we are now able to assemble electric vehicles by ourselves," said Bezuayehu Abera, the company's production manager.
Earlier this month, Ethiopia's Minister of Transport and Logistics Alemu Sime said his country is willing to explore opportunities for producing and assembling EVs with Chinese manufacturers during his discussions with potential Chinese investors.
The minister has also noted the favorable policies and market conditions established by the Ethiopian government, including a mass production of EV-charging accessories, to attract Chinese and other foreign companies to participate in the local EV industry.
