Ethiopia looks to electric vehicles to reduce oil imports
By the AFREEQUE newsroom, based on Fanamc
Ethiopia wants to develop electric vehicles to reduce its dependence on imported oil, limit exposure to price fluctuations and make better use of its renewable electricity. The transition should also support industrialisation and strengthen the country’s energy security, according to Fanamc.
Ethiopia sees the transition to electric vehicles as a way to reduce its dependence on oil imports and make better use of its domestically produced electricity, Fanamc reported in a dispatch dated 31 October 2026. The country thus wants to limit its exposure to fluctuations in global oil prices and disruptions to energy supplies.
The gradual replacement of imported fuels with domestic electricity could ease pressure on foreign-exchange reserves, contain transport and logistics costs and reduce the impact of fuel prices on inflation, according to Fanamc. Electric mobility relies in particular on Ethiopia’s hydropower, as well as the country’s wind, solar and geothermal resources. The Grand Ethiopian Renaissance Dam has increased the generation capacity available for transport and industry.
This approach extends efforts to diversify Ethiopia’s transport sector, following the launch of 26 gas-powered buses and the halving of fares on 30 October and the conversion of taxis to natural gas. It also forms part of the intention announced on 19 October to develop local manufacturing production, by encouraging the industrial use of national energy resources.
