Ethiopia is developing a multi-million-dollar electric vehicle infrastructure project along its strategic trade corridor with Djibouti, designed to reduce imported fuel reliance and lower transportation costs. The Ethiopian Electric Utility has signed feasibility study agreements with Huawei Technologies, Beijing Forever Technology, and China Road and Bridge Corporation to plan an EV charging network serving the route that handles the vast majority of Ethiopia's imports and exports between industrial hubs and the Port of Djibouti.
The project focuses on heavy-duty electric trucks rather than passenger vehicles, requiring infrastructure tailored to their specific needs. According to EEU Chief Executive Officer Engineer Getu Geremew, the study will evaluate power infrastructure requirements including transmission lines, substations, power supply capacity, and optimal locations for charging stations capable of multi-megawatt charging capacities. The feasibility study is scheduled for completion within six months, after which project partners will evaluate investment requirements, secure financing, and set an implementation timeline. The utility expects the eventual investment to reach millions of dollars, with financing options under consideration including partnerships with financial institutions, banks, and revenues generated by the utility itself.
The corridor initiative forms part of Ethiopia's broader EV expansion. The EEU recently inaugurated 11 additional charging stations across Addis Ababa, Bishoftu, Mojo, Adama, Batu, and Hawassa, bringing its active network to 14 stations capable of charging approximately 150 vehicles simultaneously. The utility previously procured equipment for approximately 40 charging stations at an estimated cost of 10 million US dollars, with more than 10 additional facilities currently under construction. Future expansion is planned for Mekelle, Gondar, Bahir Dar, Dessie, Kombolcha, Debre Berhan, Dire Dawa, Jigjiga, Jimma, Arba Minch, Wolaita Sodo, and Hossana.
For users, the financial advantage of electric vehicles is substantial. Getu noted that charging an electric vehicle typically costs between 700 and 1,000 birr, compared to 4,000 to 5,000 birr for fuel on equivalent routes. The utility's charging tariff starts at 14 birr per kilowatt-hour, with rates adjusting for peak and off-peak hours. According to Getu, the transition could significantly reduce national fuel import expenditures while generating employment through infrastructure construction, technology deployment, and maintenance services.
The project includes cross-border cooperation with Djibouti, with discussions underway to coordinate infrastructure development across both nations and potentially construct at least one charging station on the Djiboutian side. The expansion of EV infrastructure also aligns with Ethiopia's preparations to host the 32nd United Nations Climate Change Conference in Addis Ababa in 2027, with the EEU emphasizing that investments in electric mobility and renewable power are designed to yield long-term economic and environmental benefits.