Ethiopia bans import of fuel-powered vehicles by foreign missions in EV push

 

Cars drive in Addis Ababa,traffic

“In light of the pressing challenges posed by climate change and Ethiopia's commitment to contribute to emission reduction and transition to renewable energy, the importation of vehicles using fuels (petrol and diesel) for internal combustion engines is prohibited,” reads the statement.

“All those with diplomatic privileges are required to continue importing only electric vehicles as per the direction enforced for duty-free importation of vehicles.”

It adds: “The Ministry of Foreign Affairs of the Federal Democratic Republic of Ethiopia avails itself of this opportunity to renew to all Diplomatic and Consular Missions, Regional and International Organizations in Addis Ababa, the assurance of its highest consideration.”

Generally, foreign missions and their members with diplomatic or consular status import shipments to host countries without the imposition of taxes or duties.

In January, Kenya’s northern neighbour became the first country in the world to ban the import of gas and diesel cars to boost electric vehicle (EV) adoption.

INCENTIVES

As part of its plan, the Ethiopian government targeted to have 148,000 electric cars and nearly 50,000 electric buses in the country by 2030.

It offered incentives and set lower import duties for EVs compared to fuel-powered cars.

Before they were banned, importing vehicles with combustion engines attracted 15 per cent VAT; up to 100 per cent excise tax; 10 per cent surtax; and 3 per cent withholding tax.

For EVs, on the other hand, one only pays a 15 per cent customs duty.

Already, there are over 100,000 EVs in Ethiopia, per the country’s Ministry of Transport and Logistics, and in May, the government-owned broadcaster EBC quoted an official in the ministry as saying they are aiming for 500,000 in 10 years.

However, critics argue the move was premature and that Ethiopia, whose 96 per cent of its electricity comes from clean hydropower, is not yet adequately prepared for a switch to e-mobility.

The country has only about 50 charging stations, according to another transport ministry official who spoke to the tech publication Rest of World in July.

EV owners have also complained of spare part shortages and challenges in repairing their cars due to the lack of knowledge of EVs among local mechanics.

By Dennis Musau