What changed
Ethiopia has begun using domestically produced natural gas to power city buses in Addis Ababa, while expanding the infrastructure needed to supply factories and other businesses. Prime Minister Abiy Ahmed said the government has ordered 400 new gas-powered buses, expected in about three months, equal to roughly 30% of the current Anbessa City Bus fleet.
Gas refueling facilities are operating in Addis Ababa, Adama and Dire Dawa. Ceramic factories in Mojo and Debre Berhan have also switched from imported fuels to locally produced gas.
Why it matters
Ethiopia is trying to turn gas from a resource into a working supply chain. That means storage facilities, specialized transport vehicles, refueling stations and technical expertise, not simply production at the source in the Ogaden area of the Somali Region.
The bus programme shows both the promise and the friction. Existing buses are still being retrofitted, but limited local technical capacity has made that process gradual. Ordering new buses lets the government expand the programme while conversions continue.
The government’s case is that lower operating costs could eventually reduce passenger transport costs and ease pressure on households already spending heavily on food, housing and transport. That outcome remains a goal, not a measured result: no savings, fare reductions or gas-output figures were provided.
The larger test is whether Ethiopia can deliver gas reliably beyond Addis Ababa’s buses and the ceramic plants already using it. If the infrastructure and technical capacity keep expanding, domestic gas could give manufacturers a local alternative to imported fuels and make transport and production cheaper. For now, the 400 buses are a visible early bet on whether that promise reaches everyday life.
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