Ethiopia Updates ICE Car Import Ban To Embody Imports of SKD & CKD Kits

In an unprecedented transfer over a yr in the past, Ethiopia turned successfully the primary nation on the earth to ban the import of inner combustion engine automobiles. That ban was not some futuristic goal for 2030 or 2035. It was an instantaneous ban on the import of ICE vehicles. Ethiopia’s motivation? A excessive fossil gas import invoice of over US$5 billion a yr, taking an enormous chunk of the nation’s scarce international foreign money assets. Power safety and self-sufficiency have been different main drivers. Ethiopia not too long ago commissioned the primary models from the 5,150 MW Grand Ethiopian Renaissance Dam (GERD). The GERD will add one other ~15,500 GWh of fresh electrical energy to the nation’s power combine. This implies Ethiopia now has some exceptionally good domestically generated renewable power that can be utilized to substitute a good portion of that massive import invoice.

Ethiopia’s ban lined totally constructed models and unnoticed semi knocked down (SKD) and utterly knocked down (CKD) ICE car kits. That meant corporations importing SKD and CKD kits for native meeting may nonetheless accomplish that. This was the one avenue accessible for the importation of ICE automobiles. This month, the Ethiopia’s Ministry of Trade in a letter dated Might 7, 2017 (sure 2017, keep in mind in Ethiopia’s calendar, our 2025 is Ethiopia’s 2017), No 02.1.6/855 to the Customs Fee, a discover on the ban of the import of fuel-powered automobiles in accordance with a directive from the Ministry of Finance was issued and the up to date discover now bans:

1. Semi-knockdown (SKD) or utterly knockdown cars and three wheeled automobiles (excluding electrical motor powered, hybrid automobiles and ambulances) underneath tariff chapter 8703.
2. Semi-knockdown (SKD) or utterly knockdown (CKD) bikes (excluding these powered by electrical motors) of tariff chapter 8711.

The transfer to initially exempt SKD and CKD kits for ICE automobiles was meant to proceed assist for the native meeting trade and any related part manufacturing trade. I suppose the sensation is now that the electrical car trade is rising properly now each on the importation of totally constructed models and on the native meeting of electrical automobiles that the federal government feels there isn’t a extra must proceed to assist the native meeting of ICE automobiles. A number of studies state that there at the moment are tens of hundreds of electrical vehicles in Ethiopia. Information from the biggest electrical car charging hubs in Addis Ababa appear to assist this. A few months in the past, we reported that Ethio Telecom launched its newly constructed ultra-fast EV charging station on either side of the Bole to Megenagna Highway in Addis Ababa. That first charging hub has:

• 8 Extremely-Quick chargers (as much as 600 kW every) — the chargers are able to totally charging suitable automobiles inside quarter-hour, enabling fast recharges for drivers on the go.
• 12 Tremendous-Quick Chargers (as much as 500 kW every) — delivering high-speed charging with optimum accessibility, and making certain drivers get again on the highway shortly.
• Sensible Pole Chargers — built-in into good metropolis infrastructure, these Stage II chargers present emergency charging choices for drivers in want and are positioned alongside numerous routes.

This makes it one of many coolest charging hubs you could find anyplace on the earth. This hub has already carried out some superior numbers. Since launch, the Bole–Megenagna hub has made a major environmental influence, serving to to stop an estimated 521,074.23 kg of CO₂ emissions from February 11, 2025, to the primary week of April 2025 — equal to planting roughly 2,622 bushes.

Ethio Telecom says this achievement was made attainable by offering companies to 14,280 electrical automobiles over the interval, with a complete of 376,574.72 kWh of electrical energy supplied. That 14,280 might be the variety of cost periods, as there could possibly be some repeat clients on that hall. In any case, even when Ethio Telecom isn’t reporting the variety of distinctive customers and due to this fact vehicles, it helps the case that Ethiopia is seeing important progress within the nation’s electrical car fleet.

In one other transfer that ought to increase EV adoption (effectively, new-car patrons in Ethiopia don’t have a selection, as they’ll solely import EVs now), these seeking to hold on to their present ICE automobiles a bit longer could also be persuaded to make the change early, as the federal government is constant with its plan to regularly take away subsidies on fossil fuels. Ethiopia plans to introduce 15% VAT and 15% excise on gas. This can enhance the whole value of possession for ICE car drivers.

There are a variety of thrilling developments within the electrical car area in Africa, with a number of counties backing plans to speed up adoption. For instance, Zambia, Rwanda, Mauritius, and others have both eradicated or decreased import duties and taxes on electrical automobiles. In Zimbabwe, the import responsibility levied on electrical automobiles was decreased from 40% to 25%, while the duties levied on ICE automobiles remained at 40%. All of those initiatives ought to see extra electrical automobiles coming into these markets. South Africa, then again, nonetheless maintains a better import responsibility for electrical automobiles in contrast with ICE automobiles, which is an actual disgrace. Hopefully South Africa involves the social gathering quickly.

Good issues are occurring in Africa, particularly within the electrical car sector. We’re beginning to see important traction in a lot of international locations on the African continent. In Senegal, a ground-breaking 100% electrical bus fast transit service is up and working. Quite a lot of international locations are additionally pushing for adoption of electrical buses. Over 90% of all automobiles imported in most African international locations are available in as used automobiles. With the rising variety of used electrical automobiles in Europe, China, and America, we’re additionally beginning to see much more used EVs coming to West, East, Central, and Southern Africa.

One of many hottest subjects in Africa for the time being, nevertheless, is the rise of the electrical motorbike sector. Bikes are a very massive deal in numerous African international locations, with most of them deployed as taxis. Near 30 million bikes on the continent are used on this motorbike taxi trade. We’re already seeing some good traction within the sector. In Kenya, 7.1% of all new motorbike registrations in 2024 have been electrical. In Rwanda, ranging from January of this yr, solely electrical bikes could be registered.

Ethiopia has made the boldest determination to implement a complete ban on new registrations of all ICE automobiles. Will extra international locations in Africa observe Ethiopia’s lead?

All photographs courtesy of Moses Nderitu — numerous EVs in Addis Ababa.