A. Norway
B. Ethiopia
C. Kenya
D. Chile
In 2024, Ethiopia imposed a de facto ban on the importation of fossil fuel-powered vehicles due to financial constraints rather than climate goals. In addition to lowering EV tariffs to 15% for finished cars and 0% for locally assembled kits, the government outlawed the importation of automobiles with internal combustion engines.
Due to this legislation, the percentage of EVs on the road increased from less than 1% to about 6%, which is higher than the global average of 4%.
Key Points About Ethiopia’s EV Policy:
- Imports of new gasoline and diesel vehicles were outlawed in 2024, and tariffs on EVs were lowered to promote uptake.
- After the 2023 debt default, the goal was to preserve foreign exchange and cut expensive fuel subsidies.
- By 2026, the EV market share had increased to 6%, with over 115,000 vehicles and 17 local assembly factories.