🚁 Heli view: Which countries could fast-track an EV transition?

Ethiopia’s ambitious mobility strategy is extraordinary by any standard. 

• In February 2024, Ethiopia became the first country globally to ban the import of all non-electric vehicles. 

• To encourage EV adoption, Ethiopia has implemented drastic tax breaks and reduced import taxes significantly. 

• Ethiopia also launched EV manufacturing plants to create domestic production in the sector. 

The goal: The government in Addis Ababa wants to see at least 440,000 electric vehicles by 2030.

• It claims that the low-income country already has about 100,000 EVs, though no full accounting is given.

• Its 2030 goal would put Ethiopia in the current global top ten of EV countries, ahead of Sweden and Japan.

• The government hopes to get there with lots of carrots and sticks, or call it extreme regulatory activism. 

Complex motives: Officials in Addis Ababa are driven by a cocktail of reasons, some climate-related. 

• Cities would see improvements in air quality and greenhouse gas emissions. 

• Officials also want to boost the use of renewable energy as a viable form of powering the nation. 

• About 96% of Ethiopia's electricity is already hydroelectric, following vast investments.

Yes but: The main drivers behind this strategy are commercial and economic. 

• Ethiopia wants to reduce drastically the about 5% of GDP it spends on fuel imports. 

• The establishment of local EV manufacturing facilities can create jobs for its fast-growing population. 

• Incentives for EV adoption should attract both domestic and foreign investment, boosting economic growth.

• The projected lifetime cost of an EV is lower than for a fuel vehicle, boosting national mobility in the long term.