- The African Union has called on Ethiopia to discharge its obligations as a host country by allowing the clearance of several AU vehicles.
- Ethiopia’s EV policy has been met with confusion and disapproval from Addis Ababa’s diplomatic community, the automotive import industry, and the AU.
The African Union has called on Ethiopia to discharge its obligations as a host country by allowing the clearance of several AU vehicles that have been held up for months at ports in Djibouti and impounded at customs offices in Addis Ababa because of the government’s stance against the import of non-electric vehicles. The AU alleges the cars were imported before the controversial EV-only policy was introduced.
A letter from AU Commission Chairperson Moussa Faki dated October 2, 2024, and addressed to Prime Minister Abiy Ahmed and the Ethiopian Ministry of Foreign Affairs reveals that several cars procured by the AUC, the Africa Centers for Disease Control and Prevention (Africa CDC), and AU staff members remain stranded despite repeated efforts to remedy the situation.
“Despite ongoing communications with the Ministry of Foreign Affairs for months, no definitive action has been taken to clear the vehicles. This situation is severely hampering the effective functioning of the Commission and affecting the work of its staff members,” reads the letter.
As host of the AU headquarters, Ethiopia is bound to the terms of a series of agreements, including the Host Agreement and the General Convention on the Privileges and Immunities of the OAU.
The Host Agreement states that AU is exempt from customs duties and taxes on all materials, equipment, and vehicles imported for official use. It also grants AUC officials the right to import motor vehicles duty-free.
The Chairperson argues that the ban violates the terms of these agreements. He calls for cooperation and invokes the principle of non-retrospective, arguing that the EV policy cannot apply to imports already underway before its enactment.
“Any continued delay in this process not only contravenes these established legal instruments but also poses significant operational challenges to the Commission,” reads the letter.
Ethiopia’s EV policy has been met with confusion and disapproval from Addis Ababa’s diplomatic community, the automotive import industry, and the AU.
A new tax regime introduced by the Ministry of Finance levies exponentially high duty rates on combustion engine vehicle imports while EVs can come into the country duty-free. Meanwhile, Alemu Sime, minister of Transport, has previously announced a blanket ban on all fuel car imports allegedly under instructions from the PM.
However, the Transport Ministry’s decree has no legislative validity, leaving automotive importers in a state of confusion over the contradictory government policies.
The federal government also previously declared it would allow the import of fuel cars already in the shipment process before the EV policy was enacted. Nonetheless, the AU says this privilege has not been extended to it.
“The non-electric vehicles were ordered and procured well before the importation ban. Therefore, we kindly request that this ban not apply to the AU and its staff. We further request these vehicles be exempted from the new regulation, allowing their clearance and entry into the country,” reads Faki’s letter to the PM.
The Chairperson notes that similar regional and international organizations hosted elsewhere have not had to put up with bans on importing non-electric motor vehicles. “Rather, they were provided with a tax incentive to encourage importation of electric motor vehicles without necessarily affecting the privileges and immunities accorded to them,” reads the letter.
Faki also raised concerns about the security issues EVs pose to AU staff members, particularly concerns related to batteries and charging systems. “I respectfully call on your Excellency’s kind and immediate intervention to facilitate the clearance of these motor vehicles.
Resolving this issue swiftly will uphold the legal obligations under the Host Country Agreement and the General Convention and will ensure the continued efficient function of the AU and its staff,” reads the letter to Abiy Ahmed.