S&Y Electric Material – Impacc
About
The S&Y Electric Material – Impacc partnership will establish Ethiopia’s first electric three-wheeler assembly facility, supported by affordable financing and a reliable EV charging network. By integrating local production and renewable energy, the partnership aims to build a scalable, sustainable e-mobility ecosystem that strengthens Ethiopia’s climate resilience.
Investing in Impact
P4G has awarded the partnership with about US $340,000 in grant funding.
Ethiopia’s transport sector is a growing source of emissions and air pollution, with over 44,000 fossil fuel-based three-wheelers imported annually. In Tigray, three-wheelers make up nearly half of all vehicles in use, worsening carbon emissions, urban air quality and public health risks. Yet, no local manufacturing capacity, limited access to finance and lack of charging infrastructure leave a critical gap in delivering sustainable transport solutions. The S&Y Electric Material – Impacc partnership addresses these challenges by introducing Ethiopia’s first locally assembled electric three-wheelers and building a holistic ecosystem for e-mobility.
In 2024, S&Y Electric Materials secured an electric motor manufacturing license and approval from Ethiopia’s Ministry of Industry and Transport. With a 5,000-square-meter industrial site in Mekelle, S&Y is building a state-of-the-art facility to manufacture electric three-wheelers.
During the partnership period, S&Y Electric Materials will assemble 500 vehicles, with capacity to expand as market demand grows. To address the upfront cost barrier, the partnership is collaborating with national financial institutions to enable affordable leasing and loan schemes for micro-entrepreneurs and cooperatives. Meanwhile, strategically located charging stations and battery-swapping hubs will expand e-mobility infrastructure into Tier 2 cities, where national EV programs have yet to reach. Knowledge products, training programs and policy engagement will further build local capacity and an enabling environment.
Impacc will bring its expertise in venture building, patient capital and impact-driven scaling. It will provide investment strategy guidance, ESG alignment and impact measurement, ensuring that the partnership not only scales commercially but also maximizes its social and environmental outcomes. This will unlock additional capital for scaling local assembly, infrastructure and distribution.
By combining localized production, financing innovation and renewable-powered charging, the partnership will cut emissions, improve air quality and generate green jobs, positioning Ethiopia as a regional leader in sustainable mobility.
The partnership comprises the following partners: S&Y Electric Material (lead business partner); Impacc (lead administrative partner).
Partners
