Electric vehicle (EV) adoption is accelerating rapidly in Ethiopia after the government banned fossil-fuel car imports in 2024 and reduced tariffs on EVs, transforming a market once dominated by aging used vehicles.
The policy, largely driven by rising fuel subsidy costs and economic pressures, has pushed EVs from under 1% of the country’s total vehicles to nearly 6%, surpassing the global average.
Affordable electricity, including hydropower from the recently completed Grand Ethiopian Renaissance Dam, has made operating electric cars cheaper, further boosting adoption.
Chinese manufacturers currently dominate new EV sales, though local assembly is expanding, with 17 plants already in operation.
Despite uneven charging infrastructure and electricity access, government officials view EVs as a route toward energy independence and industrial growth, signaling a bold shift in Ethiopia’s transport future.
