Ethiopia Leads Africa’s Green Mobility Surge with Bold EV Transition and Fossil Fuel Ban

(3 Minutes Read)

Ethiopia is rapidly positioning itself as a leader in Africa’s clean transportation revolution. In just over two years, the country has achieved an extraordinary transformation of its vehicle sector, tripling its fleet of electric vehicles (EVs) from approximately 4,600 in early 2023 to more than 14,000 by mid-2025. This dramatic growth is no coincidence—it’s the direct result of a deliberate and aggressive shift in national policy, economic planning, and infrastructure development.

At the heart of this transformation is a groundbreaking policy enacted in January 2024, when Ethiopia became the first nation in the world to implement a full ban on the import of petrol and diesel-powered vehicles. This historic decision marked a bold stance against fossil fuel dependency, signalling Ethiopia’s firm commitment to sustainable development and climate action.

To support this shift, the government introduced sweeping tax incentives. Electric vehicles were made entirely exempt from value-added tax (VAT), customs duties, and excise taxes. Even for vehicles imported in semi-knocked-down (SKD) form—partially assembled to encourage local assembly—taxation was slashed to a mere 5%. These financial incentives significantly reduced the cost of owning EVs and created a surge in consumer demand.

The results speak volumes. By the close of 2024, EVs represented more than 60% of all new vehicle registrations in the country. This transition isn’t just environmentally progressive—it’s also economically strategic. Ethiopia, long reliant on imported fossil fuels, now stands to cut its fuel import bill dramatically. Simultaneously, the nation is leveraging its vast renewable energy potential—primarily hydroelectric power, which generates electricity at less than $0.01 per kilowatt-hour, making it among the cheapest globally.

Recognising that infrastructure is key to sustaining this momentum, the government has launched an ambitious rollout of EV charging stations. Over 2,200 stations are planned nationwide, with a significant concentration—more than half—destined for the capital, Addis Ababa. While rural regions still face logistical and technical barriers, such as limited charging infrastructure and a shortage of trained EV maintenance personnel, the overall trajectory is clear and positive.

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Ethiopia’s electric mobility strategy is more than an environmental campaign—it’s a blueprint for economic resilience, energy independence, and sustainable innovation. As other developing nations search for scalable models to decarbonise transport and reduce fuel costs, Ethiopia’s experience offers a compelling case study in what’s possible through visionary leadership and decisive action.