Ethiopia: Ethiopia Goes Electric Following Gas Car Ban

Electric vehicles have taken off in Ethiopia. Key to the shift: a world-first ban on importing fossil fuel-powered vehicles.

Shashe Asemare handles the large steering wheel with ease, navigating the mint-green city bus through the notoriously congested streets of Addis Ababa. Ever since the Ethiopian capital introduced 100 new electric buses to its fleet in 2025, she's noticed the benefits.

"These electric buses are very different from the gasoline ones," she said, taking a quick glance at the cars overtaking to her left. "They don't emit exhaust fumes or make that annoying noise."

The clean, quiet buses have also been a hit with many of the 90,000 passengers who depend on the new rapid transit line for their daily commute, like Zeraye Tekelu.

"They're very comfortable to travel in. They're also better because they don't pollute the air," he said, calling it "a step forward for our country."

Addis Ababa, one of Africa's fastest-growing cities, introduced the climate-friendly buses last year in keeping with Ethiopia's ban on the import of gasoline and diesel cars.

Announcing the world's first such ban in early 2024, Transport Minister Alemu Sime touted Ethiopia's support for "green development." This includes tax breaks for electric vehicles (EVs), 17 plants to build electric vehicles using parts from China and a focus on climate-friendly public transport, including fully electric light rail.

While the government has talked up Ethiopia's green ambitions, there's another major reason for the move to go electric: the high cost of imported fossil fuels.

The east African country reportedly spent about €4 billion ($4.6 billion) on fuel imports in 2023 and 2024, a major cost for one of the continent's poorest nations. Conventional fuel prices have more than tripled since 2022.

In March, the Ministry of Transport & Logistics said global oil market instability triggered by the Iran war showed that Ethiopia needed to speed up its shift and continue to foster the use of electric vehicles, alongside other behavioral changes like carpooling and switching to walking or cycling.

Just over two years since announcing the ban, more than 100,000 of Ethiopia's 1.2 million registered vehicles are electric. The country is aiming for a 500,000 EV share by 2030.

Electric passenger cars represent more than 5% of the country's total fleet, putting it on par with the European Union. This in a nation where around half of the population of more than 110 million still lives without electricity.

While EVs do eliminate tailpipe emissions, the electricity that runs the cars