- By Divanshi Sharma
- Wed, 14 Feb 2024 07:01 PM (IST)
- Source:JND
Ethiopia has marked its name in history as it has become the first country in the world to ban the import of petrol and diesel cars, requiring all vehicles entering the country to be electric. Alemu Sime, Minister of Transport and Logistics announced this decision with the aim of conserving foreign exchange resources as part of Ethiopia's Logistics Master Plan for implementing green transport solutions. This move aligns with Ethiopia's commitment to green development and comes amidst efforts to set up charging infrastructure for electric vehicles (EVs).
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This ban marks a significant step towards sustainable transportation however challenges will pertain. EVs are still relatively expensive globally, making them financially out of reach for many Ethiopians. The government is working to address this issue by supporting the import of thousands of electric buses and cars over the next decade and offering tax incentives for EVs.
Ethiopia's push for EV adoption is not only environmentally driven but also economically strategic. The ban is expected to reduce the country's reliance on imported crude oil, which amounted to $6 billion in 2023. Additionally, Ethiopia's abundant hydroelectric power resources make electricity cheaper than fuel, further boosting the shift to electric mobility.
Major automakers with local assembly plants in Ethiopia such as Hyundai, Isuzu, and Volkswagen will need to adjust their production to focus on electric models. However, the impact on India's automotive exports to Ethiopia remains uncertain. The government has not clarified if the ban will extend to the sale of second-hand cars, which could see a surge in demand as a result of the restrictions.
