As part of its move toward renewable energy, Ethiopia has outlawed the import of gasoline-powered vehicles by foreign diplomatic missions. This comes after the nation banned the import of any vehicle powered by an internal combustion engine earlier this year, a move that was first of its kind worldwide. Ethiopia’s Foreign Affairs Ministry sent out a statement on August 19 to all diplomatic and consular missions, as well as international organizations located in Addis Ababa, stating that the importation of gasoline- and diesel-powered vehicles is prohibited.
“Importing vehicles with fuels (petrol and diesel) for internal combustion engines is prohibited, given the serious obstacles caused by climate change and Ethiopia’s aim to contribute to emission reduction and the transition to renewable energy,” the statement states.
“Anyone holding diplomatic privileges must continue importing only electric vehicles in accordance with the policy enforcing duty-free vehicle importation.”
“The Federal Democratic Republic of Ethiopia’s Ministry of Foreign Affairs takes advantage of this chance to reiterate to all diplomatic and consular missions, regional and international organizations in Addis Ababa, the assurance of its highest consideration,” the statement continues. Generally, shipments are imported into host nations free of taxes or tariffs by foreign missions and the diplomats or consular personnel attached to them.
To encourage the use of electric vehicles (EVs), Kenya’s northern neighbor banned the import of diesel as well as gas vehicles in January, making it the first nation in the world to do so.
ENCOURAGES
The Ethiopian government set a 2030 goal of having 148,000 electric vehicles and close to 50,000 electric buses in the nation.
In comparison to fuel-powered vehicles, it set reduced import levies and provided incentives for EVs. Vehicles with combustion engines that were imported were subject to 15% VAT, 100% excise tax, 10% surtax, and 3% withholding tax prior to their prohibition.
However, the customs duty for electric vehicles is merely 15%. According to Ethiopia’s Ministry of Transport and Logistics, the country already has over 100,000 EVs, and in May, a ministry official was reported by the state-run broadcaster EBC, stating that the ministry’s goal is to have 500,000 in ten years.
Critics counter that Ethiopia, whose clean hydropower generates 96% of its electricity, is not yet ready to make the transition to e-mobility and that the decision was made too soon.
According to another source from the transport ministry, who spoke to the tech newspaper Rest of World in July, there are only roughly 50 charging stations in the nation. EV owners have also lamented the lack of availability of replacement parts and the difficulties they have had having their cars repaired by local mechanics who are unfamiliar with EVs.
