Ethiopia is set to embark on a multi-million-dollar electric vehicle (EV) infrastructure project to electrify its strategic trade corridor linking the country with Djibouti. This initiative aligns with the government's goals to reduce reliance on imported fuel, lower transportation costs, and expand renewable energy use in freight transport. The project will primarily focus on heavy-duty electric trucks that transport the majority of Ethiopia's imports and exports between industrial hubs and the Port of Djibouti.
The Ethiopian Electric Utility (EEU) has signed agreements with three Chinese companies—Huawei Technologies, Beijing Forever Technology, and China Road and Bridge Corporation—to conduct a feasibility study for developing an EV charging network along the Ethiopia–Djibouti corridor. The study will evaluate the power infrastructure required to support heavy-duty electric vehicles, including transmission lines, substations, power supply capacity, and optimal locations and technical specifications for charging stations.
The proposed corridor infrastructure must accommodate heavy trucks requiring multi-megawatt charging capacities, unlike conventional EV charging facilities designed for passenger cars. The objective is to electrify the Ethiopia–Djibouti corridor, and the study will examine both the technical requirements and investment models needed to establish facilities capable of serving heavy transport. The project is expected to involve cross-border cooperation with Djibouti, including the potential construction of at least one charging station on the Djiboutian side.
Discussions are currently underway to coordinate infrastructure development across both nations. According to EEU Chief Executive Officer Engineer Getu Geremew, the feasibility study is scheduled for completion within six months. Following its conclusion, project partners will evaluate the required investment, secure financing sources, and set an implementation timeline. The total project cost has not yet been finalized, but the utility expects the eventual investment to reach millions of dollars.
Financing options under consideration include partnerships with financial institutions, banks, and revenues generated by the utility itself. Getu added that the transition could significantly curb national fuel import expenditures and generate employment through infrastructure construction, technology deployment, and maintenance services. The corridor initiative comes as Ethiopia accelerates the expansion of its domestic EV charging network, with 11 additional charging stations recently inaugurated across several cities.
The expansion of EV infrastructure also ties into Ethiopia's preparations to host the 32nd United Nations Climate Change Conference (COP32) in Addis Ababa in 2027. EEU emphasize that investments in electric mobility, renewable power, and charging infrastructure are designed to yield long-term economic and environmental dividends well beyond the international summit. The financial benefits of electric mobility are already proving tangible for users, with charging an electric vehicle typically costing between 700 and 1,000 birr, compared to 4,000 to 5,000 birr for fuel on equivalent routes.
With the new charging stations, the utility's active network has grown to 14 stations capable of charging approximately 150 vehicles at a time. EEU has identified several more cities for future expansion, including Mekelle, Gondar, Bahir Dar, Dessie, Kombolcha, Debre Berhan, Dire Dawa, Jigjiga, Jimma, Arba Minch, Wolaita Sodo, and Hossana. Getu noted that the utility previously procured equipment for approximately 40 charging stations at an estimated cost of $10 million USD.
Key points
- The project aims to reduce Ethiopia's reliance on imported fuel and lower transportation costs.
- The feasibility study for the EV infrastructure project is expected to be completed within six months.
- The expansion of EV infrastructure ties into Ethiopia's preparations to host COP32 in 2027.
