Ethiopia Accelerating Green Mobility Transition, Says Transport & Logistics State Minister

Addis Ababa November 25/2024 (ENA) Government’s continued interventions and incentives in the transport sector are accelerating Ethiopia’s transition towards green mobility, according to Transport and Logistics State Minister Bareo Hassen.

Bareo told ENA that Ethiopia has been pushing various activities into the transport sector through policy support and financial incentives over the past few years to realize a transition to green mobility.

Recently, Ethiopia embarked on the latest advancements in electric vehicles (EVs) and green technologies, demonstrating cutting-edge solutions and products that contribute to sustainability and environmental protection.

The State Minister explained that financial incentives are being provided for investors engaged in manufacturing the Electric Vehicles including assemblers and importers, to encourage both domestic and foreign investors.

More than 100,000 EVs are now on the road across Ethiopia exceeding the target, Bareo disclosed. He also stated that the plan is to have up to 500,000 EVs in the coming ten years, replacing 95 percent of cars dependent on fuel.

The government has implemented favorable policies for the electric vehicle sector in the past few years, including a mere 5 percent duty on imported electric cars, with partially imported vehicles exempt from duty.  

"These interventions show that Ethiopia is a pioneer and a champion for E-mobility implementations for Africa," he said.

Currently, 15 private investors are assembling EVs in Ethiopia besides the expanding number of EVs importers.   

"We are making the banking sector smooth for investors and offering tax exemptions for those engaging in green mobility,” the State Minister noted.

Moreover, the government is working on expanding EVs production, public charging stations and will offer support such as free or leased land for investors in EVs after sales service, he added.  

“Ethiopia is working on green mobility and transport sector electrification," Bareo said.

He further stated that "From policy wise, we are giving policy incentives for the private sector, international companies, and also the sector.” 

For him, the government's strategy and policy response are very attractive for investors.

“We had already banned the conventional vehicles in process. But to replace conventional vehicles with electric vehicles, we make the electric vehicles investment smooth for those private sectors and also international companies. They can get credit and tax free services. And also, we are working on the availability of land for them,” he added. 

Ethiopia has fully used renewable energy sources in the rail way transport and is accelerating the transition to green mobility by encouraging Electric Vehicles (EVs) in its roads, the state minister stated. He also pointed out the electrified Addis Ababa and Ethio-Djibouti rail transports as well as the increasing of Electric Vehicles transport in the country. 

Ethiopia's commitment to green mobility is rooted in its vast renewable energy potential, and by harnessing these renewable energy sources, it aims to build a sustainable transport sector, contributing to global climate change mitigation efforts and setting a precedent for other African countries.