Member states of the African Union at the AU headquarters in Addis Ababa, Ethiopia on February 15, 2024. The country is home to the majority of foreign diplomats in Africa. (Michele Spatari/AFP)
Diplomatic missions have been included in the ban on the importation of petrol and diesel vehicles.The ban is part of the country’s move towards green energy and alleviation of a fuel crisis.There are at least 100 000 electric vehicles in Ethiopia.As part of its green energy revolution, Ethiopia this week prohibited diplomatic, consular, regional, and international organisations from importing cars powered by fossil fuels.
This decision was made “in light of the pressing challenges posed by climate change and Ethiopia’s commitment to contribute to emission reduction and transition to renewable energy”, according to a circular shared by the Ministry of Foreign Affairs.
Individuals who fit this description are eligible to import electric cars (EVs) duty-free.
Ethiopia is home to the majority of foreign diplomats in Africa; thus, this move could have a significant positive effect.
Major organisations like the African Union and Pan African Chamber of Commerce are based in Ethiopia’s capital, Addis Ababa, despite the country having 65 foreign embassies and five consular posts.
READ | African clean energy projects still lure foreign investors, but SA saw 43% drop in inflows in 2023
The promotion of EV vehicles is a long-term solution to the country’s ongoing fuel shortages.
According to the Ethiopian Petroleum Supply Enterprise, each day, at least 9.2 million litres of diesel must be pumped into the market daily to meet basic needs.
However, in some cases, low supplies below two million litres reach the market.
In 2022, the Ministry of Finance announced a new duty tariff for vehicles. Petrol- and diesel-powered vehicles attracted a 200% customs duty while for EVs, it is 15%.
But in January this year, a total ban on the importation of fossil-fuelled cars was introduced.
According to the Ethiopian government, there were about 100 000 EVs in the country but challenges persisted considering 56% of Ethiopians have access to electricity.
Even though African green EV startups are working to lower the initial cost of EV ownership for the general public, EV purchases are still expensive.
Import taxes, a dearth of government incentives, and constrained charging options are to blame for this.
The News24 Africa Desk is supported by the Hanns Seidel Foundation. The stories produced through the Africa Desk and the opinions and statements that may be contained herein do not reflect those of the Hanns Seidel Foundation.