Addis Ababa: The Ethiopian government’s persistent interventions and incentives in the transport sector are accelerating the country’s transition towards green mobility, as stated by Transport and Logistics State Minister Bareo Hassen.
According to Ethiopian News Agency, Ethiopia has been actively promoting various activities in the transport sector through policy support and financial incentives over the past few years to facilitate the shift to green mobility. Recently, the country has adopted the latest advancements in electric vehicles (EVs) and green technologies, showcasing innovative solutions and products that support sustainability and environmental protection.
The State Minister highlighted that financial incentives are being offered to investors involved in manufacturing electric vehicles, including assemblers and importers, to attract both domestic and foreign investment. Currently, more than 100,000 EVs are operational across Ethiopia, surpassing the initial target. The plan aims to increase t
his number to up to 500,000 EVs over the next decade, replacing 95 percent of fuel-dependent cars.
To bolster the electric vehicle sector, the government has introduced favorable policies, such as a mere 5 percent duty on imported electric cars, with partially imported vehicles exempt from duty. Bareo emphasized that these initiatives position Ethiopia as a leader in E-mobility implementations within Africa.
At present, 15 private investors are assembling EVs in Ethiopia, alongside a growing number of EV importers. The State Minister noted that the banking sector is being streamlined for investors, and tax exemptions are being offered to those engaged in green mobility initiatives.
Furthermore, the government is focused on expanding EV production, establishing public charging stations, and providing support like free or leased land for investors in EV after-sales services. The state’s commitment to green mobility and electrification of the transport sector is evident in its policies.
Bareo added that the
government’s strategy and policy framework are highly appealing to investors. Conventional vehicles have been banned in the process, and efforts are underway to facilitate the transition to electric vehicles by smoothing investment processes for private sectors and international companies. These entities can access credit and tax-free services, and efforts are being made to ensure land availability.
Ethiopia has fully leveraged renewable energy sources in railway transport and is accelerating the adoption of EVs on its roads. The electrified Addis Ababa and Ethio-Djibouti railways, along with the increasing presence of EV transport, underscore the nation’s commitment to green mobility.
Ethiopia’s dedication to green mobility is grounded in its substantial renewable energy potential. By utilizing these resources, the country aims to develop a sustainable transport sector, contributing to global climate change mitigation efforts and setting an example for other African nations.