Taxi Drivers Hit Brakes on Emissions Push as Costs Mount

Oct 18 , 2025. By SURAFEL MULUGETA ( FORTUNE STAFF WRITER )

A new emissions directive is reshaping Addis Abeba’s taxi industry. Over 4,200 iconic blue-and-white Code 1 taxis, some decades old, now face mandatory emissions testing and strict compliance rules. Owners who do not comply risk losing their livelihoods, as authorities roll out random inspections citywide. Taxi drivers report spending more than 2,500 Br daily on fuel. With the price of a single litre at 122 Br, many say they simply cannot afford the 150,000 Br to 300,000 Br required for engine overhauls demanded by the new regulations.

A long-planned directive to curb carbon emissions from fossil-fuel-powered vehicles has sparked fresh concern among thousands of taxi drivers struggling with the costs and practicalities of compliance.

The new directive, officially enforced in March this year, requires all diesel and gasoline vehicles to undergo emissions testing and mandates either the installation of approved emission-reduction devices or proof of emission compliance through an official certificate. For many, especially Addis Abeba’s blue-and-white Code 1 taxi drivers, the timing and requirements have been confusing and daunting.

Transport authorities are making emissions a central issue for the city’s taxi fleets, starting with the oldest vehicles that are widely believed to be a source of pollution. Random inspections are being planned across the city, targeting these older models as part of a phased rollout, according to the Addis Abeba Transport Bureau. Officially commissioned researches show that about 70pc of the city’s fuel-based emissions originate from taxis alone, data that has become a rallying cry for environmental action.

“We've been creating awareness on what emission control means and how it works," said Yabebal Addis, the Bureau’s head. "After informing the taxi associations, we've a green light to begin measuring carbon emissions. As our current capacity is limited, we'll start with older taxis that show noticeable gas releases.”

Those who fall short of the new standards will be given two options. They will have to install a certified emission-reducing device or undertake a full engine overhaul to lower emissions. Failure to comply results in immediate consequences, a 15-day suspension of the operating permit, locally known as “Bolo,” with the potential for a three-month suspension if the issue persists. In cases of continued noncompliance, permits can be permanently revoked.

“If vehicles don’t meet the standard, their permits will be temporarily suspended until they fix the problem,” Yabebal told Fortune. “We're enforcing the directive gradually to give time for compliance.”

But for most taxi drivers, the transition comes at a particularly hard moment. The economy has been buffeted by inflation and a sharp depreciation of the Birr, sending fuel and maintenance costs soaring.

Mola Genetu, a Code 1 taxi owner and driver, captures the prevailing sentiment. He bought a used car eight years ago from another owner who had owned it for much longer. A litre of fuel costs 122 Br, compelling him to spend more than 2,500 Br a day on gas. and spare parts. He is worried that what he makes is not enough to cover the cost of 150,000 Br to 300,000 Br for engine renovation.

“Even if the concept is commendable, we can't afford it,” he told Fortune.

His concerns are echoed by Tekesetebirhan Semre, another Code 1 taxi owner, who supports reducing emissions but feels left in the dark about what is actually required.

“The notion of installing a device to reduce carbon gas emissions is good,” he said. “But we don’t know what these devices are, where they come from, how they work, or how much they cost. The lack of information makes us despair. The government should educate and inform us first.”

Daily expenses have left him and others with little to save. He makes between 3,000 Br and 5,000 Br a day, but fuel alone takes 2,500 Br. After maintenance, tyres and oil changes, there is little left to support his wife and two kids.

"We all want cleaner air," he told Fortune. "But we need time and government assistance to comply with these standards.”

The implementation is backed by a regulatory framework set by the Ministry of Transport & Logistics, under Alemu Sime (PhD), which now requires individuals and companies in the emissions business to obtain a competency assurance permit. Applicants should provide business details, identification, adequate office space, and evidence that their technology meets the Ethiopian Standards Institute's certification requirements. Permits are required to calibrate their testing devices annually, inspect vehicles in accordance with national benchmarks, issue compliance certificates, and report data quarterly.

Oversight falls to the Ministry, which is charged with licensing, renewing, and cancelling permits for businesses involved in emissions control. It also conducts annual and surprise inspections, monitors imported vehicles and installed devices, manages a growing database of emission reports, and promotes public awareness. The Ministry is tasked with supporting research, ensuring annual calibration of testing equipment, and requiring proper verification of compliance during vehicle inspections. Enforcement is further delegated to relevant organs, which check vehicles, enforce penalties, oversee device installation, and report findings up the chain.

The policy is already drawing in private enterprise. TBK Trading Plc has begun selling a device, GreenTech, imported from Taiwan’s Molotech Group. The company claims the device can reduce exhaust emissions by up to 97pc and cut fuel consumption by 30pc. It is installed inside the engine, boasts a 10-year lifespan, and costs between 15,000 Br and 50,000 Br, depending on the size of the fuel tank. The 200Ltr model is listed at 29,000 Br.

However, the scepticism extends well beyond costs and technicalities. Many drivers worry that Addis Abeba officials' long-term plan is to phase out fuel-powered Code 1 taxis altogether, replacing them with electric vehicles. That prospect is making drivers hesitant to invest in expensive engine overhauls or emissions devices, even if their cars may be forced off the road regardless of compliance.

“The emission control plan has a good intention," Germachew Tadese, who bought his Code 1 taxi two years ago for 670,000 Br, summed up the frustration. "But, if we're going to be replaced by electric taxis soon, spending 200,000 Br or more to overhaul our engines is pointless. We need clear direction from the government.”

Addis Abeba has roughly 4,200 Code 1 taxis on its roads, most of them old. The combined pressures of stricter emission standards and a push towards electrification have left their owners worried about the future.

Abera Adugna, another taxi driver supporting a family, remembers taxi associations being encouraged to form savings groups to buy electric vehicles.

“We're told to start saving in groups to buy electric taxis, and the government promised to provide loans,” he said. “But even with loans, we heard that the initial payment is around 1.5 million Br. I cannot afford that. If renovating the motor and installing these devices will let us stay in the city, we're ready to do it. But if we’re still forced out, most of us are going to be jobless. It’s a waste of money.”

Taxi associations, while publicly supporting the government’s environmental crusade, argue for more time, clear information, and technical help before enforcement becomes widespread. According to Nuredin Ditamo, general manager of the Blen Taxi Association, which represents 270 taxis, his members support emission reductions but feel the available information is still inadequate.

“We agree that emission control is necessary for the country’s green transition,” he said. “But the information provided about the new devices being installed in cars is still unclear. We need more time and awareness training, for everyone to understand its benefits.”

Selam Taxi Association, which has about 400 taxi owners under its wing, is already preparing for the shift by saving toward group buying of electric vehicles. Its President, Getu Tesfaye, disclosed that they have begun saving in groups of 50, with the government promising to cover around 85pc through loans.

“But while we’re preparing for that, asking drivers to spend over 200,000 Br on motor renovations right now is too much," he told Fortune. "We need time and support.”

Tilahun Werku, a veteran mechanic and chief technician at “Ermjachin Besira” Garage in Qirqos, estimates that a single engine overhaul can run between 150,000 and 350,000 Br, depending on wear and tear. The engine is not the only source of excess emissions. The catalytic converter, which helps control gas release, costs more than 35,000 Br to replace. Oil changes are needed every 5,000Km and cost around 3,000 Br.

"These are another source of emission costs that already strain vehicle owners,” said Tilahun, who supports emission controls. "But they should be executed with careful technical planning and consideration for the families that rely on taxis for income."

Leaders of the Transport Employers Federation, representing broader industry interests, argue that while the environmental imperative is undeniable, the shift should be gradual and sensitive to the economic realities facing taxi owners and drivers. For Dereje Baye, a board member, taxis are more than vehicles and sources of income for many families. He pressed federal transport authorities to provide coordination, training, and financial assistance.

“The country must move toward eco-friendly transport," said Dereje. "But this transition shouldn’t be rushed and strain taxi owners."

Federal transport officials maintain that the emission control program is integral to the country’s Green Legacy Initiative and its international commitments under the Paris Agreement. The domestic transport sector accounts for about a fifth of the national greenhouse gas emissions, totalling an estimated 160 million tons annually, according to the latest emission index data. More than 1.6 million vehicles are registered across the country, of which about 200,000 are public sector vehicles. By contrast, roughly 100,000 electric vehicles are now in circulation, marking the beginning of a shift toward cleaner mobility.

According to Abathun Takele, president of the Transport Employers Industry Federation, the stakes are high for the city’s health and environmental goals as more than 70pc of carbon emissions in Addis Abeba come from fuel vehicles.

“This should be alarming," he told Fortune. "We're moving toward a green and eco-friendly future, and emission control is an essential step. But the information flow needs to improve. Drivers need to understand why this matters and how it protects public health.”

PUBLISHED ON Oct 18,2025 [ VOL 26 , NO 1329]