Ethiopia’s $4 billion hydroelectric dam is already powering one of the most aggressive electric mobility transitions in Africa, just seven months after its inauguration.
In a continent still largely dependent on fossil fuels, Ethiopia is charting a radically different path by electrifying transport at scale using abundant, low-cost hydropower.
The Grand Ethiopian Renaissance Dam , Africa’s largest hydroelectric project, has effectively doubled the country’s electricity capacity, creating the backbone for a fast-emerging EV ecosystem.
The results are already visible in Addis Ababa, where more than 100 electric buses now glide through the capital’s streets, transporting roughly 90 000 passengers daily.
These quiet, zero-emission vehicles are the first phase of an ambitious national plan targeting 500 000 electric vehicles, including buses, by 2030.
“This is not just an energy project, it is an economic transformation engine,” prime minister Abiy Ahmed. “Hydropower allows us to run transport on domestic energy instead of imported fuel.”
The buses produce zero exhaust emissions and operate with minimal noise compared to diesel engines, creating what passengers describe as a noticeably calmer and cleaner commuting experience in the often congested streets of Addis Ababa.
Driver Shashe Asemare, who operates one of the electric buses, told Ethiopian media that the difference is immediate. “These buses are far quieter and smoother than the gasoline models.”
The economic benefits brought about by the shift to EV buses have also been immense. Ethiopia has historically spent billions annually on oil imports, straining foreign currency reserves.
By contrast, more than 97% of its electricity now comes from renewable sources, primarily hydropower, making EV adoption not just environmentally sound but economically strategic.
In 2024, the government took the unprecedented step of banning the import of new gasoline and diesel vehicles, a bold policy pivot rarely seen globally.
Under prime minister Ahmed, the country is also expanding electrification beyond passenger cars to include heavy-duty trucks and industrial machinery, while using natural gas as a transitional fuel.
Challenges, however, remain, particularly around charging infrastructure and electricity access in rural areas, although momentum is building fast.
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