Addis Ababa, June 6, 2024 (FBC) – The World Bank has reaffirmed its commitment to supporting Ethiopia’s efforts in increasing the adoption of electric vehicles and promoting renewable energy sources.
This commitment was made during a meeting between Ber’o Hassen, Ethiopia’s Minister of State for Transport and Logistics, and the World Bank’s transport and energy sector team.
During the discussion, the State Minister explained that various strategies and standards are being developed with determination, starting with the preparation of legal and policy frameworks to introduce electric vehicles into service on a large scale in the country. In line with Ethiopia’s 10-year strategic development plan of the sector, works are being undertaken to put 148 thousand automobiles and more than 4 thousand 800 electric buses into operation within Ethiopia.
To achieve this ambitious goal, the government is working to create welcoming conditions, including providing tax incentives for those who import electric vehicles and assemble them in the country, State Minister Ber’o noted.
He emphasized that the partners’ financial and technical support is vital in expanding charging centers, garages, and maintenance facilities, as well as training experts in the sector.
The World Bank team confirmed that they will support the ministry’s efforts in expanding electric vehicles and utilizing renewable energy sources in the country.
Note that the World Bank has recently announced a financial envelope to strengthen and expand Ethiopia’s electricity network, improve viability, and promote renewable energy generation through private sector involvement.
Of the 1.72 billion USD financing agreement signed in the form of credits and grants between Ethiopia’s Ministry of Finance and the World Bank Group early in April 2024, a USD 522.63 million investment will be used to implement Power Sector Reform, Investment, and Modernization in Ethiopia Project: Phase 1 of a Multiphase Programmatic Approach in the country. The project aims to strengthen and expand the electricity network and facilitate renewable energy generation in Ethiopia through operational and structural reforms.