By Napoleon Mugenzi
Addis Ababa — Ethiopia has commissioned its third artificial intelligence-powered electric vehicle charging station in the capital, marking another significant milestone in the East African nation’s ambitious transition away from fossil fuel-powered transportation.
The new facility, inaugurated Thursday in the Summit–Fyel Bet area, brings the combined capacity of Ethio Telecom’s charging network to 48 vehicles simultaneously—a critical infrastructure expansion as the country races to support what has become one of the world’s most aggressive EV adoption programmes.
A telecoms giant’s strategic pivot
The station’s launch represents an unconventional but increasingly successful bet by Ethio Telecom, the state-owned telecommunications provider, which has diversified into green infrastructure as part of Ethiopia’s broader economic transformation strategy.
“This initiative reflects our commitment to showcasing to fellow African nations the comprehensive transformation our country is undergoing through its digital journey, as well as its growing role as a model in building a climate-resilient and sustainable green economy,” said Frehiwot Tamru, Ethio Telecom’s CEO, at the inauguration.
The move comes as Ethiopia seeks to leverage its massive renewable energy capacity, roughly 90% of its electricity comes from hydropower, to offset crippling fuel import costs that have long strained the nation’s foreign currency reserves. With fuel prices doubling from $0.40 per litre in January 2023 to $0.80 by January 2025, the economic imperative for electrification has intensified.
World-first policy drives rapid adoption
Ethiopia became the first country globally to implement an outright ban on internal combustion engine vehicle imports in January 2024, a move that initially drew scepticism but has since catalysed rapid EV adoption. The government has since tightened restrictions, extending the ban to include semi-knocked down and completely knocked down vehicle kits as of May 2025.
The results have been dramatic. According to the Ministry of Transport and Logistics, more than 100,000 electric vehicles now operate on Ethiopian roads—representing approximately 8.3% of the country’s estimated 1.2 million registered vehicles. If accurate, this would make Ethiopia the clear leader in EV penetration across Africa and a surprising contender amongst global adopters, particularly given its historically low motorisation rate of just 6.7 vehicles per 1,000 people as of 2016.
The government has sweetened the transition with aggressive tax incentives, imposing just 15% customs duty on fully assembled EVs compared to the punishing combination of VAT, excise taxes, surtax and withholding taxes that previously made traditional vehicles prohibitively expensive. Partially assembled EVs face an even lower 5% duty.
Technical innovation meets infrastructure challenge
The new Summit–Fyel Bet station features 16 super-fast chargers, each capable of delivering up to 180 kilowatt-hours. The facility’s distinguishing feature is its AI-driven diagnostic system, which automatically analyses battery specifications and charging compatibility before optimising power delivery—a particularly important capability for handling European EV models that have begun entering the market alongside the dominant Chinese imports.
The charging stations operate around the clock and integrate seamlessly with telebirr, Ethio Telecom’s digital payment platform, which has amassed more than 38 million users since its 2021 launch. The system supports mobile payment, self-service charging initiation, real-time status monitoring, and NFC-enabled authentication—eliminating the need for on-site personnel or cash transactions.
Since the first two stations along the Bole–Megenagna corridor commenced operations on 11 February 2025, the network has provided charging services to more than 165,000 vehicles, dispensing 4,349,761.54 kilowatt-hours of energy. The system has helped avoid an estimated 6,081,447.62 kilogrammes of CO₂ emissions—equivalent to planting more than 30,444 trees, according to Ethio Telecom.
The infrastructure gap remains
Despite these advances, Ethiopia’s EV ambitions face significant headwinds. The country’s electricity access rate stands at just over 50% nationally, though it exceeds 90% in Addis Ababa, where EV adoption has concentrated. The $5 billion Grand Ethiopian Renaissance Dam, which promises to add approximately 15,500 gigawatt-hours of clean electricity annually, remains incomplete amid financial constraints and regional tensions.
Rural electrification poses a particular challenge. Motorcycle taxi operators in areas like Dubancho village, 350 kilometres south of Addis Ababa, express interest in electric scooters to escape rising fuel costs but lack basic grid access. Transport policies that prohibit two-wheelers on major roads further complicate adoption beyond urban centres.
“It shouldn’t be an either/or,” said one industry observer commenting on the urban-rural divide. “It shouldn’t be we’ve got to do urban and then we’ll do rural—no, why do we need to wait?”
The government’s 10-year development plan calls for importing 4,800 electric buses and 148,000 electric cars, targets that some analysts view as overambitious given Ethiopia’s ongoing economic challenges, including internal conflicts, inflation pressures, and difficulty securing IMF financing.
A continental precedent
Ethiopia’s aggressive approach has not gone unnoticed across Africa. Rwanda has stopped approving new registrations of petrol-powered motorcycle taxis, Kenya’s EV sales surged to 4,193 units in December 2024 from just 1,059 a year earlier, and the Kenyan government plans to build 1,000 charging stations by 2027.
For U.S. and European manufacturers, Ethiopia represents a unique first-mover opportunity, particularly in premium market segments where consumers are prepared to pay for established brand recognition. However, Chinese manufacturers currently dominate the market, with brands like BYD and Jetour gaining rapid market share through competitive pricing and established distribution networks.
The success of Ethio Telecom’s charging infrastructure initiative may prove pivotal. If Ethiopia can demonstrate that a landlocked, lower-income nation with limited motorisation history can successfully transition to electric mobility at scale, it could provide a replicable model for other developing economies seeking to leapfrog traditional automotive development paths.
For now, the third charging station in Addis Ababa represents both tangible progress and a down payment on an uncertain but potentially transformative future—one where Africa’s second-most populous nation charts a course towards sustainable mobility that much wealthier countries have yet to achieve.
