Electric vehicle adoption is accelerating in Ethiopia after the government banned fossil-fuel car imports in 2024 and reduced tariffs on EVs, reshaping a market once dominated by aging used vehicles. The policy, driven largely by the high cost of fuel subsidies and economic pressures, has pushed EVs from under 1% of the country’s total vehicles to nearly 6%—above the global average. Affordable electricity, including hydropower from the recently completed Grand Ethiopian Renaissance Dam, has made electric cars cheaper to operate. While Chinese manufacturers currently dominate new sales, local assembly is expanding, with 17 assembly plants already operating. Although charging infrastructure and electricity access remain uneven, officials see EVs as a path toward energy independence and industrial growth, signaling a bold shift in how Ethiopia powers its transport future.

Source: Ethiopian News February 26, 2026 00:22 UTC