Ethiopia’s aggressive drive to electrify its transport sector is attracting some of East Africa’s leading electric vehicle manufacturers, with Kenyan firms Spiro, Roam and BasiGo exploring expansion into what is rapidly emerging as the region’s most advanced EV market.

 

The shift follows the launch of Ethiopia’s new e-mobility strategy, which targets electric vehicles accounting for at least 80 percent of all newly registered vehicles by 2030, up from the current eight percent.

Backed by tax incentives, fast-track licensing and government support for charging infrastructure, Addis Ababa is positioning itself as a regional hub for electric mobility while seeking to phase out fossil fuel-powered transport.

The strategy appears to be paying off.

Kenya’s leading electric motorcycle manufacturers, Spiro and Roam, have both signalled interest in the Ethiopian market, while electric bus maker BasiGo has identified Ethiopia as a potential future destination for expansion.

Spiro, which this week secured $215 million in equity financing to scale operations across Africa, said Ethiopia is among the markets targeted under its next growth phase.“With operations in seven African markets, Spiro now plans to expand local production and enter new markets, including the Democratic Republic of Congo and Ethiopia as part of the new expansion plan,” a company spokesperson told The EastAfrican.

Roam is also testing the Ethiopian market. Earlier this year, the company completed a 1,600-kilometre ride from Nairobi to Addis Ababa on one of its motorcycles to showcase electric mobility and raise awareness of its products.

In December, Roam raised €215,100 ($250,075) in equity funding to support growth, although the company has yet to confirm whether Ethiopia will be its next expansion destination.

BasiGo, which operates in Kenya and Rwanda, also recently secured $42 million to expand across Africa.

However, managing director Moses Nderitu said the company remains focused on consolidating operations in its existing markets.“At the moment, we are focused on growing profitability in the two markets we are in, but it’s something [Ethiopian market] we would consider at a later date,” he told The EastAfrican.

Policy advantageThe attraction extends beyond market size.

Ethiopia has introduced one of the continent’s most comprehensive packages of incentives for EV investors, including tax holidays, access to land for manufacturers, faster licensing processes and low-interest financing schemes to encourage EV purchases.

The government is also accelerating the rollout of charging infrastructure and plans to electrify all government vehicles, while ensuring all newly registered two-wheelers and three-wheelers are electric.

For Addis Ababa, the transition is as much an economic strategy as an environmental one.

Fuel imports account for about 20 percent of Ethiopia’s import bill, making electrification a key component of efforts to reduce foreign exchange pressures and create industrial jobs.“The growth of local manufacturing capabilities for EVs, along with their associated parts, components and systems, will enhance value addition throughout the mobility value chain,” Ethiopia’s Ministry of Transport and Logistics said in the strategy document.“This initiative will generate jobs, promote human capital development, decrease the country’s dependence on imports and open up opportunities for exports.”Market gapEthiopia’s EV fleet grew from 45,000 vehicles in 2024 to 115,000 in 2025, one of the fastest growth rates on the continent.

Today, electric vehicles account for about eight percent of Ethiopia’s vehicle fleet, compared with just 0.5 percent in Kenya, where about 24,754 EVs are on the road.

The country can currently produce about 83,500 electric vehicles annually, including 63,900 two- and three-wheelers, 14,900 passenger cars, 3,500 buses and minibuses, and 1,200 light trucks.

That production gap is creating an opportunity for regional manufacturers, particularly Kenyan firms, whose production capacity is estimated to be nearly double Ethiopia’s but whose home market has lagged in EV adoption.

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