Ethiopia joins electric bus deployment

April 03, 2025

From the newsletter

Ethiopia has launched 100 electric buses in Addis Ababa. This marks the beginning of the city’s journey to electrify its fleet of over 1,170 public transport buses. The e-buses were assembled locally by automotive firm Belayneh Kindie Metal Engineering Complex, using CKD kits sourced from China. These buses will operate on exclusive lanes to allow for faster, more efficient commuting.   

  • Previously reliant on importing fully built units, the country is now flexing its capabilities in electric vehicle assembly. A regional race in e-bus production is likely to intensify, with Kenya, Uganda, and Ethiopia each vying for dominance in market share. 

  • The race is no longer solely about deploying vehicles but about securing strategic control over the EV supply chain and after-sales ecosystem. Ethiopia stands out with its ambition to integrate lithium mining and battery production.

More details

  • Ethiopia is significantly reforming its public transport strategy to modernise urban mobility and reduce reliance on fossil fuels. With projected revenue reaching $785 million this year and rising to $1.13 billion by 2029, the sector presents strong potential for both policy development and investment.

  • The commissioning of electric fleet, led by Addis Ababa Mayor Adanech Abiebie, tackles the city’s chronic congestion while signalling a national shift toward affordable, eco-friendly, and accessible transit. These buses feature intelligent transport systems and fare collection systems, improving operational efficiency and the commuter experience.

  • Assembled locally by Belayneh Kindie Metal Engineering Complex using kits from Chinese manufacturer Golden Dragon Bus Ltd, the fleet highlights Ethiopia’s emerging industrial capabilities. The production plant, built for $15 million in 2024, aims to produce 1,000 EVs annually. The country is also exploring domestic battery production using lithium from the Kenticha mine and Danakil Depression, with potential partnerships from global firms like BYD and CATL.

  • East Africa’s electric public transport landscape is evolving rapidly, with cities such as Nairobi, Kigali, Addis Ababa, and Kampala taking deliberate steps to electrify mass transit. These four cities are emerging as continental leaders in replacing diesel buses with electric alternatives, setting benchmarks for other African regions still lagging in EV policy and infrastructure.

  • BasiGo, a Kenya-based e-mobility pioneer, is at the forefront of scaling electric bus adoption in the region through a commercially robust model. The company currently operates a fleet of 119 electric buses in Kenya and Rwanda and plans to deploy 1,000 e-buses within the next three years. This expansion is supported by a local assembly line for BYD buses based in Kenya and a Pay-As-You-Drive model that includes maintenance, charging, and insurance—making e-mobility more accessible for operators.

  • With over 500 reservations in Kenya and 360 in Rwanda (up from 100 in April 2024), BasiGo's bundled approach demonstrates the growing demand for electric buses and the importance of integrating finance with operational infrastructure. In  March, BasiGo revealed that Rwanda was receiving its largest delivery yet—28 new BasiGo e-buses—as part of a broader plan to roll out 100 units by the end of 2025.

  • In Uganda, state-owned Kiira Motors Corporation (KMC) aims to produce 1,030 buses annually, including both diesel and electric versions of its Kayoola model. Officially launched in March 2025, the company has already manufactured 27 electric buses currently operating in Kampala and Jinja. With technical support from China’s CHTC and a target of producing 30,000 buses by 2030, Uganda is positioning itself as a serious contender in Africa’s e-mobility manufacturing space.

  • At a regional level, the implications are transformative. East Africa is not only adopting electric vehicles but is also localising their manufacturing, assembly, and servicing—creating jobs and industrial capacity in the process. The rise of public-private partnerships, state-backed manufacturers, and large-scale charging infrastructure is accelerating the shift from isolated pilots to commercial-scale deployment.

Our take

  • Ethiopia’s policy framework provides a clear roadmap for accelerating EV adoption, with recent moves such as the ban on importing petrol and diesel vehicles signalling a long-term commitment to decarbonising transport. In parallel, investment in EV charging infrastructure is beginning to take shape, supported by the country’s increasing electricity generation capacity—most notably from the Grand Ethiopian Renaissance Dam (GERD).

  • Senegalese and Ethiopian governments have taken bold steps by directly purchasing electric buses for public use—a strategy that could boost production capacities while bypassing the slow pace of adoption among private public transport operators. This approach allows governments to set the pace and standards for infrastructure, service quality, and reliability, potentially reducing risks and giving private operators a clear model to follow.

  • The future of electric bus assembly in East Africa appears bright, as countries step up investment in local manufacturing to reduce reliance on imports and meet rising demand for sustainable public transport. Over time, this growing ecosystem could not only serve cities across the region but also supply electric buses to other African markets in search of proven, scalable solutions.