Thursday, November 14, 2024

ELECTRIC MOBILITY

While electric vehicles (EVs) have only recently begun to challenge the internal combustion engine (ICE) for the future of our roads, EVs have been around for over a century. The long history of EVs has been one of many twists and turns.
The history of electric cars can be broken up into five distinct periods: the early pioneers of electric mobility (1830-1880), the transition to motorized transport (1880-1914), the rise of the internal combustion engine (1914-1970), the return of electric vehicles (1970-2003), the electric revolution (2003-2020), and the tipping point (2021 and beyond).
The growth in electric mobility, more so in 2021 and beyond especially passenger electric vehicles, has been profound. From whichever metric you measure it-EV sales, EVs on the roads, government EV mandates, EVs as a percentage of all vehicle sales, or simply vehicle manufacturers making electric mobility pledges-it’s undeniable that governments, society, and consumers see electric mobility playing a large role in the future. Ethiopia itself is closely following suit, with the likes of Marathon Motor Engineering, a joint venture between Hyundai Motor Company and Olympic Champion Haile Gebreselassie, assembling the all-electric Hyundai Ioniq.
Now this space is seeing a new entrant in the form of Green Tech Ethiopia who officially has become the second entrant in the electric cars market in the country. As the firm enters the market, it is indicated that in addition to electricity, the cars Green Ethiopia is importing can also use solar energy.
In order to have a deeper insight into the firm’s initiatives on this market, Capital drew links with the company’s Managing Director, Fitsum Deresa for an inside look at the firm’s activities. Excerpts;

Capital: What are the areas that Green Tech works on?
Fitsum Deresa: Green Tech Ethiopia is a private share company that is part of the greater mother company of Green Tech Africa. Our work focuses on green energy in various African countries mainly in east Africa starting from Ethiopia.
It is difficult to protect the environment and make changes to one’s country without working hand in hand. Thus, we are working with different companies across the countries including Kenya, Djibouti, Rwanda, Burundi, and Ethiopia to achieve these lasting changes.
By way of simple definition, green tech refers to a type of technology that is considered environmentally friendly based on its production process or its supply chain. Green tech, an abbreviation of green technology can also refer to clean energy production, the use of alternative fuels, and technologies that are less harmful to the environment than fossil fuels.
Thus, our firm works to promote products or services that improve operational performance while also reducing costs, energy consumption, waste, and negative effects on the environment.

Capital: What kind of projects do you have currently?
Fitsum Deresa: Currently, we have three main projects and others in the pipeline.
The first one is promoting a water purification system using the Reverse Osmosis method by moving water through a semipermeable membrane to filter out and flush away any contaminants. Reverse osmosis systems are best suited for domestic use and provide a highly efficient way to purify your drinking water at home. We have started this project in Ethiopia and Djibouti which is so far successful.
The other is Solar energy. We are on our way to start the project in Ethiopia with our own fast charging shade. Additional to this in an urban area we are working on to use solar as energy starting from the municipality to the house to protect the environment, b use of efficient and renewable energy.
Moreover, in collaboration with the World Bank, we are working on rural electrification. To this end we are soon to start operation as we have already imported the necessary equipment for the project.
And recently as you have well noted, we are focusing on green transportation through the use of environmentally friendly electric cars.

Capital: What led you to delve into transportation?
Fitsum Deresa: Currently, we are actively working in Ethiopia, Djibouti, and Kenya on renewable energy. Whenever we say renewable energy there are lots of different aspects inclusive of transportation to some degree. And one of our targets to this end is introducing electric cars in Ethiopia as well as the continent.
Scientific researches have shown that 60 percent of the air pollution in the world results from gas vehicles. So, to solve the problem using only solar energies or renewable energies has limited effect. However, focusing on transition from gas vehicles to electric cars has become the main area of focus the world has narrowed to in order to lower its carbon footprint.
Similarly, for us, we are working to bring the same transition in Ethiopia, and Africa. As research shows, if we can change at least half of the gas vehicles in the country to electric cars we could be able to save half of the budget spent on gas importation. We are now working to import and deploy a huge number of electric cars in the Ethiopian market.

Capital: What type of electric vehicles are you looking into bringing to Ethiopia?
Fitsum Deresa: Currently, we have introduced six models of imported rechargeable solar and electric-powered cars with the aim to promote renewable energy in the country. From the six different electric car models so far 70 have arrived in Addis Ababa while additional 200 cars have reached Djibouti port.
The plan is also to import 5000 electric cars within the coming 5 years and we are also planning to delve into the transportation industry through our green transport initiative service.
Our plan is not only to import electric cars, we also have plans to start to an electric car assembly plant. We have reached an agreement with world-class electric car producers to this end.
In the long haul, our plan is to fulfill national demand and also to start mass export and to facilitate this vision, we are working with various partners in the industry.
We have received land in Dire Dawa and we are in talks with the city administration of Addis Ababa so within six months we will have our own assembly factory and start producing electric cars and scooters.

Capital: What kind of scheme do you have to sell the cars?
Fitsum Deresa: In order to support the middle and low-income societies and promote entrepreneurship in the country, the company has facilitated a 40/60 electric car sale package to its potential customers. The financing scheme will help all our potential customers to secure automobiles enabling them to create income streams for themselves and their families in the process. To this end, Green Tech is working with Africa Village microfinance and other banks.
60 percent of the payment will be covered by customers and Green Tech will cover the remaining 40 percent. Customers can pay 30% of their 60% ownership which is only 18 percent of the total price to purchase their cars and the remaining 70% payment will be down-paid as per the directives of the agreement.

Capital: What kind of features do the cars have?
Fitsum Deresa: Of course, the energy cost that powers the cars is a huge point in getting one of these automobiles. For instance, solar-charged electric cars can travel 60-120 kilometers. The 4-seater automobiles have a 26kWh capacity and with a full charge can be driven to a distance of 200km with only 9.10 birr while that of the minibus can be driven to a distance of 360km once its 80kWh battery is fully charged with only 28 birr. With the price of gas being sold at 31 birr per liter, this is definitely worth the interest of any prospective buyer. Similarly, the cars also present a minimum maintenance cost which is very beneficial to its future owners.

Capital: How has the government support been with regards to this new initiative?
Fitsum Deresa: The government support is really good. The minister of Transport and Logistics has also visited our office and interacted with us whilst commending our project.
Since government is pro- clean and renewable energy, with various initiatives such as green legacy, the acceptance and support are great. Moreover, when you look at the 10-year strategic plan of the transport industry one of the primary focuses is reducing he carbon footprint. Thus, we are happy to play a role in reducing emissions and we are also looking forward to engage with government departments when we start to engage on mass transportation.

Capital: What are the challenges you are expecting to face?
Fitsum Deresa: The market for green technology is relatively young, it has garnered a significant amount of investor interest due to increasing awareness about the impacts of climate change and the depletion of natural resources. However, even with opportunities of investments the shortage of foreign currency in Ethiopia is a huge hurdle. However, the ministry has promised to iron out the issues with us. Thus, with whatever challenges we may face, I believe we will get the necessary supportive structure to combat the same.

Related Stories