- Environmental and economic considerations drive Ethiopia’s decision.
- Ethiopia has only 7,200 electric vehicles currently on Ethiopia’s roads out of a total of 1.2 million cars.
The Ethiopian government has said it has issued a sweeping ban on importing privately-owned gasoline-powered vehicles, allowing only the importation of electric cars for individual use. The decision, driven by environmental and economic considerations, marks a significant shift in the country’s automotive landscape.
The severity of this measure may raise eyebrows, especially in a nation where 50% of the population lacks access to electricity. A year ago, it had already lifted numerous import taxes to incentivise the purchase and establishment of assembly plants within the country.
Only 7,200 electric vehicles are currently on Ethiopia’s roads out of 1.2 million vehicles; the adoption rate has been slow. The relatively high purchase price, rarely dipping below €32,000 for a used electric car, and the scarcity of charging infrastructure contribute to this sluggish uptake.
In the capital, only three electric charging stations are operational. Despite these challenges, Ethiopia boasts cheap electricity, with the lowest purchase price in Africa at €0.006 per kilowatt.
The country produces nearly 5,000 megawatts of electricity, a figure set to double with the mega-dam construction on the Nile.
Also, the government’s ambitious push towards electric vehicles aligns with its broader strategy to reduce dependence on fossil fuels, cut emissions, and bolster the domestic electric vehicle industry. While the transition poses challenges, Ethiopia’s abundant and affordable electricity positions it as a potential leader in the shift towards sustainable transportation in Africa.