Sunday with Eden | Nov 22,2025
Federal transportation authorities are pushing for the conversion of old, fuel-powered cars to electric vehicles, expecting about 15pc of the country’s vehicle fleet to undergo the shift. However, their desire faces a strong backlash as technicians, retrofitters, and owners tasked with carrying out these changes raise red flags over the practical realities of implementation and cost.
Experts estimate that conversion costs for cars range from 5,000 to 15,000 dollars, while buses can exceed 30,000 dollars. Beyond these, there are the hidden costs of battery replacements, non-standard maintenance, and the challenge of complying with increasingly complex and evolving regulations.
For many transporters, the prospect of electrifying ageing vehicles brings little comfort, despite the authorities' declared efforts to address air pollution and reduce fossil fuel dependency. Alemu Sime (PhD), minister of Transport & Logistics (MoTL), issued a draft regulation last week, outlining a series of technical and procedural steps for vehicle owners to comply.
Only vehicles aged between 20 and 25 years may be retrofitted, with those older than 25 strictly barred from conversion. All conversions would take place in certified garages meeting stringent requirements, including a minimum floor area of 190Sqm and a ceiling of at least five metres, equipped with explosion-proof ventilation, automatic fire-suppression systems, industrial three-phase electricity, and a climate-controlled room for battery storage.
One such garage, Gerar EV Workshop, is located on Mauritius Street in the Gofa area. It is the city’s earliest dedicated electric vehicle garages where Yonatan Sisay, a technician, works at the frontline of the domestic EV revolution. He and his team are working on retrofitting a 1960s-era car, and the challenges are mounting.
“The expenses are through the roof,” Yonatan told Fortune, noting that, despite a surge of interest from vehicle owners looking to switch to electric, the numbers do not add up for most. “Even if the government subsidises the sector, the battery costs are higher in the source countries.”
Alemu's directive lays out a mix of financial incentives from a 100pc tax exemption on imported EV components to access to zero-interest loans for up to seven years, and a direct subsidy covering half the conversion cost for public transport vehicles within the target age bracket. Technicians, meanwhile, are required to hold one of four nationally certified qualifications in battery management, high-voltage safety, power electronics, or retrofit design engineering.
However, Yonatan was candid about the scale of the problem. Most of the minibuses and public transport vehicles on the roads are not only old but also riddled with rust and structural fatigue.
“Except for the shell, all of the spare parts have to be bought, making the process more difficult,” he said. "It's easier to buy a new vehicle than to retrofit an old one from top to bottom."
At Gerar EV Workshop, which has been open for two years and handles up to 15 EVs a day, the reality is that the cost of converting a 25-seat vehicle, especially the batteries, can soar to one million Birr, a figure that outpaces the value of many of the vehicles currently in service.
Some systems, like cooling, are not yet included in the directive. Kedilmagist Ibrahim, an advisor at the Ministry, draws a distinction between private and public transport vehicles, disclosing that the 20-year threshold applies only to public transport vehicles. For private cars, owners have the prerogative to opt for retrofitting.
Kedilmagist hopes to see commercial spaces transformed into battery-swapping stations, as swappable batteries become the norm and retrofitting ramps up. According to him, motors will be replaced and the system modernised from manual to electric in a few years.
Yet, the industry response has been cautious, if not outright critical. Eshetu Mekonnen, CEO of Universal Engineering & Manufacturing Plc, a company that has ambitions to retrofit vehicles locally, is wary of the proposed garage space requirements. He argued that the proposed garage space range is suitable for the European standard that allows for efficient workflows.
The Ministry will require all retrofitting work to be conducted in a certified garage with a minimum floor area of 190Sqm and a maximum of 590Sqm, equipped with a five-metre ceiling height, fitted with three-phase 400V industrial electricity, and a separate, climate-controlled battery storage room.
At the lower end, the space is sufficient for one or two vehicles with basic lifts and storage, while the higher limit can accommodate up to six vehicles, along with dedicated zones for battery testing and electronics. Most of the existing garages, particularly in Addis Abeba, fall well short of these standards, with small spaces, low ceilings, and poor electrical infrastructure the norm.
“Only a few facilities could meet this without major upgrades or relocation,” said Eshetu.
Urban garages would need costly expansions, while higher potential might exist in industrial zones or at technical colleges. Eshetu would prefer to see the authorities consider a shared model where several small garages cluster around a certified large-scale retrofit centre, optimising space and costs.
The proposed age limit for vehicles eligible for retrofitting has also been a subject of misgiving. Eshetu is blunt in his assessment, arguing that vehicles aged 20 to 25 years are already beyond their mechanical prime.
“Cars in this bracket are mechanically compromised," he told Fortune. "Chassis fatigue, corrosion, and degraded wiring make them inefficient and unsafe for conversion.”
Second-hand minibuses and taxis in this age group might sell for between 800,000 Br and 1.8 million Br, but the design modifications needed for batteries, motors, and high-voltage safety systems add as much as 10pc to 20pc to the total bill, pushing retrofit costs beyond the value of the vehicles themselves.
“In many cases, the conversion bill exceeds the vehicle’s remaining value,” Eshetu warned. "Large-scale retrofits should be restricted to vehicles less than 20 years old, with older vehicles reserved for demonstration or pilot projects."
However, he acknowledges that while the draft regulation rightly spells out the need for specialists in battery technology, power electronics, and EV diagnostics, the domestic industry is starting from a low base. There are no dedicated EV retrofit or lithium-ion battery management courses, although general electrical and mechanical programs are offered at institutions like Addis Abeba Institute of Technology and Adama Science & Technology University.
"Most of the expertise in the sector is self-taught or comes from limited international exposure," he said.
Eshetu presented a three-phase roadmap for building local capacity, which included pilot programs at selected technical and vocational schools, focusing on battery assembly, EV safety, and motor controls. He also would like to see a dedicated national EV training centre with simulation labs and public-private partnerships, integrating EV modules into university engineering programs. The long-term goal is to create domestic battery assembly and testing facilities, along with a network of certified retrofit workshops in major cities.
“Building local expertise through these structured steps should be non-negotiable,” he told Fortune. “If we import everything and train no one, we remain dependent forever.”
The technical and economic barriers are apparent, but some believe they are not insurmountable.
Bereket Tesfaye, program manager for Ethiopia at Pure Earth and an e-mobility expert, is convinced that converting fuel-powered vehicles to electric is technically feasible, provided it is handled with careful planning and consideration. Drawing on a new feasibility study, Bereket argued that light-duty vehicles, taxis, and small buses are the most promising candidates for conversion. The retrofit of older or heavy-duty vehicles, he believes, faces high costs associated with electric motors, expensive batteries, advanced controllers, and highly skilled technicians.
These, Bereket warned, often make it more economical to buy new electric vehicles, especially for those with high annual mileage.
“These hidden costs can quickly erase any perceived savings,” he cautioned. “Developing local expertise should not be optional," said Bereket. "It's the foundation for long-term sustainability.”
Bereket called for a robust regulatory framework, including mandatory safety and certification standards for retrofitted EVs, uniform battery and motor specifications, tax exemptions, low-interest financing, and regular inspections. Without these measures, converted vehicles could quickly become a safety hazard. Infrastructure remains a critical bottleneck in the absence of nationwide fast-charging networks, specialised workshops, safe battery recycling facilities, and grid upgrades needed for the anticipated demand.
For all the problems, Bereket sees clear benefits in pushing forward with the transition. Retrofitting could generate thousands of green jobs in workshops and battery management, reduce fuel imports, lower urban air pollution, and improve public health. However, he insisted on a phased approach, focusing first on high-use fleets such as taxis, ride-hailing cars, and government vehicles.
“Attempting full-scale conversion of all internal combustion engine vehicles in the short term is unrealistic due to financial, technical, and logistical constraints,” he said.
PUBLISHED ON
Nov 08,2025 [ VOL
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