The Ethiopian Ministry of Transport and Logistics on Tuesday announced that it will not allow vehicles to enter into the country unless they are electric ones.
The ministry made the announcement while it presented a six-month performance report to the Urban Development and Transport Standing Committee in the House of People’s Representatives (Ethiopian Parliament).
Alemu Sime, Minister of Transport and Logistics, announced the completion of Ethiopia’s Logistics Master Plan involving implementation of “Green Transport” in the east African nation.
“A decision has been made that automobiles cannot enter Ethiopia unless they are electric ones,” Sime stated.
However, the affordability of electric cars for a significant portion of the Ethiopian population poses a potential challenge while not forgetting the percentage of the population able to afford a car remains negligible.
He further explained that efforts to establish charging stations for electric cars are in progress. One of the reasons behind this decision is Ethiopia’s inability to afford importing gasoline due to limited foreign exchange resources – according to the minister.
It remains unclear when the policy will come into effect and it doesn’t clarify whether vehicles in transit from overseas are subject to the new policy.
There was a report that the Ethiopian government introduced Value Added Tax (VAT) Excise tax, and Sur Taxes exemptions for electric cars in 2022.
In addressing challenges within the sector, such as traffic accidents, the Ministry emphasized the necessity of coordination and collaboration with stakeholders to conduct thorough inspections and follow-ups to resolve issues in the transport sector.
