ADDIS ABABA, April 21 (Reuters) - Ethiopia's best known pop star, Teddy Afro, was remanded in custody on Monday on a murder charge connected to a hit-and-run incident.

The 31-year-old singer, real name Tewodros Kassahun, was charged last week in connection with the death of an 18-year-old homeless man, Degu Yibelte, hit and killed by a BMW registered to Afro in Addis Ababa late last year. He denied the charge in court on Monday, and his appeal for bail was deferred to Wednesday.

Afro, who is hugely popular among young Ethiopians, sings mainly in the local Amharic language.

His last album release, Yasteseryal (Redemption), coincided with Ethiopia's 2005 election that led to violent protests and the jailing of opposition leaders.

Some of his lyrics were construed as politically controversial at the time. (Reporting by Barry Malone and Tsegaye Tadesse; editing by Keith Weir) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/)