Ethiopia may ban domestic assembly of fuel vehicles

April 17, 2025

Ethiopia banned the importation of fuel vehicles in January 2024, the first country to do so in the world. But Africa’s second largest country is now considering taking this a further step and banning the local assembly of non-electric vehicles, says Yizengaw Yitayih, a senior advisor to the Ethiopian Minister for Transport in an interview with Mobility Rising.  

  • Ethiopia has a growing automotive assembly industry, with companies like Kaki Motors assembling Isuzu vehicles. Other brands assembled locally include Kia, Hyundai, Peugeot, and IVECO, as well as some less-known Chinese brands. These companies have been capitalising on the import ban to increase their local production and sales. 

  • This could change as a ban on the local assembly of fossil fuel vehicles is a possibility in future, said Mr Yitayih. While the import ban has accelerated the adoption of electric vehicles in the country, a further ban on local assembly of fuel vehicles could propel EVs to new heights. 

  • Our take: Ethiopia has been able to reduce its fuel import bill and preserve its foreign exchange reserves, highlighting the benefits countries can derive from switching to EVs... Read more (2 min)

South Africa’s Golden Arrow Bus Services (GABS), the continent's oldest bus company, has deployed 20 electric buses this year, and targets to deploy a further 100 before the close of 2025. Supplied by BYD, it is the latest example of the Chinese EV giant's quiet revolution in Africa's bus market, where European brands like Scania and Mercedes-Benz lead. 

  • BYD has sold more than 74,000 electric buses globally, one of the largest fleets in the world. The company is now making a splash in Africa, where buses are the primary mode of mass transport. Besides Golden Arrow, BYD has also supplied its buses to other companies in Africa, including BasiGo, an electric bus startup based in Kenya.  

  • There are over 1 million buses plying Africa’s roads, but most of them use diesel. It will not be easy for BYD to crack this market due to the high cost of electric buses compared to traditional ones. The biggest selling point for EVs however is their lower operating costs, which could be a draw for mass transit operators. 

  • Our take: The cost of an electric bus remains prohibitive compared to a diesel bus, and dealers must explore viable financing mechanisms to make usage and ownership more accessible… Read more (2 min)

The EV market in April has been characterised by pricing shifts and striking disparities. In Kenya, volatility was pronounced. An example is the BYD Atto 3 standard range, which retails for $40,704 in South Africa, yet costs $70,571 in Kenya. This raises questions about regulatory inefficiencies, dealer markups and opaque tax structures.

  • In Egypt, prices remained largely stable, though selective price increases are evident—closely tied to currency trends. South Africa also demonstrated relative price consistency.

  • The rand, its currency, weakened from 18.38 to 18.95 per USD. For businesses heavily reliant on foreign currency to source vehicles, this depreciation squeezes already slim margins.

  • Our take: The steady electric vehicle prices in Egypt and South Africa are thanks to thriving local manufacturing… Read more (2 min)

  Gogo Electric team celebrates the successful conclusion of DRIVe 2.0 project in Uganda

Events

🗓️ Join cyclists for the Kampala Cycling Day (April 4)

🗓️ Register for the upcoming EV parade organised by Kenya Power (May 4)

🗓️ Book your slot at Africa in Transition in Belgium (May 20)

Jobs

👨🏻‍💼 Apply for Procurement and Admin Officer at BasiGo (Kenya)

💼 Join the MAX’s finance team as a Senior Accountant (Nigeria)

👩🏻‍💻 Become the next DevOps Engineer at Kofa (Ghana)

Various 

📩 Apply for Delta40 Energy & Mobility Innovation Program

🚗 Chinese mini EV lease offers big savings for Kenyan taxi drivers

🚐 DFSK South Africa rolls out EC35 electric panel van 

Seen on LinkedIn 

Yizengaw Yitayih, Senior Climate Change Expert, says, “By electrifying public transport and creating innovative financing models, we can make EVs affordable and practical, transforming daily life while tackling climate change and boosting local economies.”