Addis Ababa To Add 500 New Electric Buses

Ethiopia is driving an aggressive electrification shift across its capital, leveraging massive domestic hydropower projects to transform urban transit. The country spends almost 4 billion euros a year on oil imports, money it cannot afford to spend. Ethiopia prohibited the importation of gasoline and diesel cars in 2024 and quadrupled its fleet of electric vehicles in two years, from 30 thousand to almost 120 thousand units.

Fleet Expansion and Smart Monitoring in Addis Ababa

The Addis Ababa Transport Bureau is steering the procurement of 500 electric buses. The tender has drawn interest from several international manufacturers, according to the transport bureau. Dagnachew Sheferaw, deputy head of operations at the Addis Ababa Transport Bureau, said the buses will be equipped with GPS and onboard cameras to enable centralized monitoring and improve route management.

One hundred electric buses are already in service, he said. Officials said the vehicles have improved service reliability and reduced the need for manual oversight. The cameras also allow authorities to monitor driver behavior and enhance passenger security, Dagnachew added. City officials said the initiative is part of a broader effort to position Addis Ababa as a leader in electric mobility across Africa. The city currently operates one of the continent’s largest public bus networks, and authorities have signaled interest in transitioning the entire fleet to electric power over the next decade.

Hydropower Powering the Transition

More than 97% of Ethiopia’s electricity comes from hydropower, a clean and cheap source. The centerpiece of this transformation is the Grand Ethiopian Renaissance Dam, the largest dam in Africa, which began operations in 2025 with a capacity of 5,150 megawatts. The dam doubled Ethiopia’s electricity production and made it economically viable to power an entire fleet of electric vehicles with renewable energy, differentiating the country from nations that adopt electric cars but recharge their batteries with electricity generated from fossil fuels.

The rise in oil prices confirmed the wisdom of the decision: while countries dependent on fossil fuels face high prices at the pump, Ethiopia recharges its vehicles with hydropower at costs that have not been affected. The goal is to reach half a million electric vehicles by 2030, and what makes this ambition viable is something that most countries do not have.

Financial Relief for Local Drivers

Taxi driver Abdurahman Ali experienced the transition firsthand. Before swapping his gasoline Toyota Vitz for an electric car, he spent 40,000 to 50,000 birr a month on fuel. Since switching to electric and charging at home, his monthly costs have dropped to around 5,000 birr, a reduction of nearly 90% that illustrates why drivers in Ethiopia are embracing electrification even without direct government incentives. For those with low incomes, savings on fuel is the most convincing argument there is.

Passenger Reactions and Future Targets

More than 100 electric buses have been operating in Addis Ababa for a year, and the impact on the city is visible and audible. The vehicles emit no exhaust fumes and do not make the noise of diesel engines, creating what passengers describe as an oasis of tranquility in the chaotic traffic of the Ethiopian capital. Driver Shashe Asemare, who drives one of the electric buses, confirms: These buses are very different from the gasoline models.

Passengers in Ethiopia approve of the change. They are very comfortable to travel in. They are also better because they do not pollute the air. This is a step forward for our country, said a passenger to DW’s report. Transporting over 90,000 people a day with virtually no climate impact, the electric buses of Addis Ababa demonstrate that public transport electrification works in cities of emerging countries, not just in European capitals with billion-dollar budgets.