Ethiopia Accelerates Decarbonization with Ambitious EV Transition

Addis Ababa, May 21, 2025 (ENA) -- The Ministry of Transport and Logistics has emphasized that Ethiopia is taking significant strides towards decarbonizing its transport sector, with the government actively promoting the widespread adoption of electric vehicles (EVs).

State Minister Transport and Logistics, Bareo Hassen told ENA that a multi-faceted approach is being implemented to make EVs more accessible to the general population, fundamentally accelerating the nation's shift towards green mobility.

According to the state minister, numerous programs are underway to ensure that sustainable transportation alternatives are available across Ethiopia, fostering environmental protection and reducing pollution.

The implementation of varying tax exemption levels for the importation and domestic manufacturing of all electric vehicles is anticipated to significantly spur the growth of the EV sector, further diminishing the nation's reliance on imported petroleum products for transportation, he emphasized.

"We are encouraging firms that currently assemble diesel and gasoline vehicles to shift towards making electric vehicles," the state minister noted, emphasizing that the transition aligns with global sustainability efforts and opens new avenues for growth and innovation in the automotive industry.

He also emphasized that the focus is on harnessing the country's abundant renewable and clean energy resources. "Ethiopia is abundant in renewable energy resources and has been making significant strides to reduce its reliance on oil by harnessing its potential," he noted.

According to him, the government is actively attracting leading EV manufacturers to the Ethiopian market and this initiative has created an understanding that EVs are more economical in terms of operational costs, resilience to fluctuating fuel prices, and overall fixed expenses.

Significant transformations are also planned for public transportation services in Addis Ababa and surrounding regions, he stressed, adding, large construction trucks used for freight and urban public transport vehicles will be progressively replaced with electric models, he added.

"We are actively working to implement traction strategies within the sector to establish an appealing environment for industry players, ensuring that purchasing power becomes more affordable," the state minister explained. "Specifically, our efforts are focused on reducing the costs associated with electric vehicles. This will be achieved by attracting manufacturers, promoting reputable brands, and offering a diverse range of products to enhance market accessibility."

"We are encouraging companies that have prohibited internal combustion engines (ICE) at the automotive level to embrace this transition," he stated. "This year, a clear direction has been established for oil vehicle manufacturers to pivot towards electric vehicles”.

According to Bareo, it has been two years since the automobile ban was implemented. As available trucks and cross-border buses across the globe are being replaced with electric alternatives, Ethiopia is also advancing in that direction.

Ethiopia's commitment to decarbonization is enshrined in its Long-Term Low Emission and Climate Resilient Development Strategy (2020-2050), which emphasizes the need for a shift to electric mass transportation, clean fuels, and expanded infrastructure to achieve decarbonization.