Project Background

• Resource Background

  Ethiopia is Very Suitable for Developing The New Energy Vehicle Industry

  The Federal Democratic Republic of Ethiopia, abbreviated as Ethiopia. Ethiopia is located in the northeast of Africa, at the center of the Horn of Africa. It borders Djibouti and Somalia to the east, Sudan and the Republic of South Sudan to the west, Kenya to the south, and Eritrea to the north, making it an important transportation hub connecting the Middle East and inland Africa.

  

• A Large Population Base

  Ethiopia is the second most populous country in Africa, with a total population second only to Nigeria. As of August 2023, its population exceeded 127 million. The population of Ethiopia is still relatively young. According to Datareport data, the average age of the Ethiopian population is 18.8 years old, with over one-third of the population being under 13 years old. 60% of the population is under the age of 24, making it a significant potential workforce

  

• Continuous Economic Growth

  Ethiopia, a new BRICS country, maintains rapid economic growth and is one of the most economically dynamic countries in Africa. According to the statistics of the World Bank, in the 14 years before the outbreak of the COVID-19, Ethiopia's economy maintained rapid growth, with an average annual growth rate of nearly 10%, ranking among the 10 countries with the fastest economic growth in the world for a long time, and its GDP has achieved double-digit growth for 15 consecutive years.

  

• African Union Headquarters

  Addis Ababa, the capital of Ethiopia, is the location of the African Union (AU) and the United Nations Economic Commission for Africa (UNECA), with political and economic influence radiating throughout Africa.

  

• Rich Hydropower Resources

  Ethiopia has a hydroelectric potential of approximately 45000 megawatts, making it the second largest country in Africa with abundant renewable energy resources, including hydropower, wind energy, and solar energy. The country has a large number of rivers and plateau areas, making it suitable for developing hydropower and wind power projects. Ethiopia also has sufficient sunshine time, suitable for solar power generation.

  

Car Background

• The current situation of car consumption in Ethiopia is extremely unreasonable

  The Ethiopian people pay expensive prices but can only consume car products that are ten years behind the world. There is great potential for cars, with less than 2 cars per thousand people, indicating a high market potential. Each thousand people own only 1.2 vehicles, and 90% rely on imports. The comprehensive tax rate for imported fuel vehicles is as high as 100%.

  

• The Ethiopian people have a unique economic advantage in using new energy vehicles

  The ratio of energy consumption cost between fuel powered vehicles and new energy vehicles within a unit distance is 117 times Similarly, driving 100000 kilometers, traditional fuel vehicles require approximately 7000 liters of fuel and pay a cost of $8400, while pure electric vehicles only require 12000 kWh of fuel and pay a cost of only $72

  

Project Logic

• Through China's 40 years of experience in transitioning from introducing joint ventures to overtaking new energy vehicles on curves, and through a four step approach of "SKD Factory CKD Factory - localization of components - launch of independently designed vehicle models", we aim to help Ethiopia achieve the autonomy of its national automotive industry and the rise of independent automotive brands.Step 1: Assembly of semi-finished parts Cooperate with partners from Ethiopia to build a pure electric vehicle assembly plant and establish an independent Ethiopian automotive brand in Ethiopia
  Purpose achieved: To cultivate local industrial workersStep 2: Assembly of all loose parts Gradually expanding the content of vehicle assembly technology, achieving the upgrade and transformation from component assembly to full assembly of individual partsStep 3: Localization of components Gradually introduce supply chain supporting manufacturers or export technologies, or invest in local factories to achieve localization of components
  Goal achievement: Accumulate local industrial technologyStep 4: Local independent research and development Cultivate local technical talents, establish an Egyptian new energy vehicle technology research and development team, and achieve localized development of vehicle models

  

Project Status

Goal Programming

• Project Objectives

  Enable the Ethiopian people to drive their own branded new energy vehicles

  

• Long Term Strategy

  Make Ethiopia a leading manufacturing center in Africa and the largest automobile manufacturing country on the continent

  Make Ethiopia a leading manufacturing center in Africa and the largest automobile manufacturing country on the continent