Ethiopia Bans Gas Cars, Boosts Electric Vehicles

In Addis Ababa, the shift towards electric vehicles (EVs) is gaining momentum as part of Ethiopia's broader strategy to alleviate poverty. The government has significantly reduced customs taxes on imported EVs, slashing the tax from up to 200% for gas vehicles to just 15% for fully assembled electric models. This initiative aligns with Ethiopia's commitment to harness its abundant hydropower resources, which supply 96% of the country's electricity, thereby promoting both economic efficiency and environmental sustainability. Despite the low overall car ownership in Ethiopia, with only about 1.2 million vehicles on the road, the government has historically maintained high taxes on gas-powered cars to encourage public transportation use. Activists and organizations are now advocating for increased investment in electric buses and public transport systems to ensure that the benefits of EVs are accessible to all income levels. This push is crucial as the country seeks to enhance mobility while reducing reliance on imported fuel. In neighboring Kenya, a similar trend is emerging, with a remarkable 500% increase in electric motorbikes following the introduction of tax incentives. Although the total number of electric bikes remains modest compared to the overall fleet, this growth has contributed to reduced noise pollution in urban areas. Additionally, Nairobi has recently launched its first fleet of electric buses, marking a significant step towards modernizing public transit. Industry experts draw parallels between the current EV market and the mobile phone revolution of the past three decades, suggesting that widespread adoption of electric vehicles could soon become a reality across East Africa.