Is Ethiopia a leader in Africa's electric vehicle transition?

Ethiopia has emerged as an unexpected leader in Africa’s electric vehicle (EV) transition. In 2023, the country became the first in the world to ban imports of internal combustion engine (ICE) vehicles.

What does Ethiopia's EV push mean for the EV industry?

Against this backdrop, Ethiopia’s EV push marks a dramatic pivot. The ICE ban, combined with import duty waivers and tax exemptions for EVs, signals a radical shift in transportation policy. If government-reported EV figures are accurate, they point to a wholesale transformation of the national vehicle fleet in a remarkably short time period.

How many EVs are there in Ethiopia?

According to the Ministry of Transport and Logistics, the country now has 100,000 EVs on its roads, accounting for roughly 8.3% of its estimated 1.2 million registered vehicles. If accurate, that would make Ethiopia the clear front-runner in EV penetration on the continent, and a surprising contender among top global adopters .

Are used cars a problem in Ethiopia?

Like most African countries, Ethiopia’s roads are dominated by used cars, which make up around 85% of vehicles. But a complex mix of high import duties — historically as high as 200% — and chronic foreign currency shortages have long made car ownership out of reach for most Ethiopians.

Could EVs help Ethiopia generate more electricity?

Ethiopia is also expanding its electricity generation capacity through major infrastructure investments like the Grand Ethiopian Renaissance Dam (GERD), one of Africa’s largest hydropower projects. As GERD ramps up, EVs could anchor new electricity demand and absorb surplus power. Can we trust the numbers?

What is Ethiopia's EV story?

But Ethiopia’s EV story begins in an unlikely place. Ethiopia has long had one of the lowest motorization rates in Africa — just 6.7 vehicles per 1,000 people in 2016, compared to a continental average of 72.7. This reflects Ethiopia’s low income levels and restrictive automotive policies.