Ethiopia has stunned the global automotive industry by committing to electric vehicles (EVs), and it’s paying off. In just two years, the East African nation has nearly tripled its electric vehicle (EV) fleet, increasing from roughly 4,600 in early 2023 to more than 14,000 by mid-2025.

This is no accident. In January 2024, Ethiopia threw down a gauntlet to the global automotive status quo, becoming the world’s first country to ban the import of petrol and diesel vehicles outright. That dramatic move triggered a surge in clean vehicle adoption and signaled Ethiopia’s intent to drive its future, not just coast along behind richer nations.

The policy wasn’t just about climate, though Ethiopia’s green credentials are growing stronger. It was also economic. The country slashed taxes on electric vehicles to zero, including VAT, excise, and customs duties, while keeping tariffs on semi-knocked-down EV kits at just 5%.

This incentive cocktail led to a dramatic shift in consumer behavior. By the end of 2024, over 60% of newly registered vehicles in Ethiopia were electric, a revolutionary figure in a region still largely dominated by fossil fuel transport.

Ethiopia isn’t gambling without a safety net. The country’s energy grid is anchored in cheap and abundant hydroelectric power, delivering electricity at under $0.01 per kilowatt-hour, among the lowest rates globally. With that advantage, Ethiopia is not only saving on fuel imports but also building true energy sovereignty.

To support the growing demand, the government has launched an ambitious infrastructure plan that includes more than 2,200 EV charging stations, with over half slated for Addis Ababa alone.

While rural infrastructure gaps and limited maintenance expertise pose short-term hurdles, Ethiopia’s commitment is unwavering. The country is building a mobility model rooted in sustainability, economic resilience, and technological foresight.