Ethiopia has widened its restrictions on fossil fuel vehicles by banning the importation of fuel-powered trucks, marking another bold step in the country’s journey toward a fully electric transport system.
Prime Minister Abiy Ahmed announced the policy during the commissioning of a new refinery and fertilizer plant in Gode, Somali Regional State, describing it as a critical move in Ethiopia’s clean energy transition.
The new ban extends an earlier restriction introduced in January 2024, which halted the importation of petrol and diesel cars. Initially intended to reduce the country’s fuel import bill—estimated at around $7 billion annually—the measure has since become a cornerstone of Ethiopia’s Climate-Resilient Green Economy (CRGE) plan, which aims for carbon-neutral economic growth by 2030.
“From today, importing fuel-powered trucks is no longer allowed,” Abiy announced, reaffirming the government’s determination to phase out internal combustion engines.
Experts say the move will significantly impact the logistics sector, as most of Ethiopia’s freight and transport services depend on diesel-powered vehicles. The Ethiopian Investment Commission and other stakeholders have raised concerns over the country’s limited electric vehicle charging infrastructure, especially in rural and border regions.
Still, the government is optimistic that Ethiopia’s renewable energy potential—over 90 percent of its electricity is generated from hydropower—will support the growing demand for electric mobility.
To make the transition smoother, authorities have rolled out tax incentives for electric vehicles. While duties on internal combustion engine vehicles can exceed 300 percent, fully built electric vehicles attract much lower rates, and electric vehicle assembly kits are often tax-free.
These incentives have already boosted electric car and bus imports, as well as encouraged local assembly ventures. The government now hopes to extend this momentum to heavy-duty transport and freight vehicles.
With the new policy, Ethiopia is on track to become one of the world’s first nations to completely halt the importation of fossil fuel-powered vehicles—cementing its place as a leader in Africa’s green mobility revolution.
