EV Sales Boom As Ethiopia Bans Fossil-Fuel Car Imports
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by BeauHDFebruary 19, 2026
AI-Generated Deep Dive Summary
Ethiopia’s ban on fossil-fuel-powered vehicles in 2024 has led to a significant surge in electric vehicle (EV) adoption, jumping from less than 1% to nearly 6% of all vehicles on the road. This policy shift was motivated more by economic pressures than climate goals, as years of subsidies for gasoline had drained the country’s budget. Ethiopia defaulted on its sovereign bonds in 2023 due to rising debt servicing costs and received a $3.4 billion bailout from the IMF the following year. By slashing tariffs on EVs—dropping them to 15% for completed cars, 5% for parts, and zero for vehicles assembled locally—the government made new EVs cost-competitive with older gasoline-powered models, spurring adoption.
For decades, Ethiopia’s high import tariffs had limited car ownership, with only about 13 vehicles per 1,000 people compared to the African average of 73. Most cars were imported and purchased as used vehicles due to the country’s low manufacturing output and GDP per capita of just $1,000. The government’s new import policy disrupted this market, with lower tariffs for EVs and parts creating a more affordable option for consumers. This shift reflects a broader trend where countries without strong automotive industries are prioritizing cleaner, cheaper alternatives to reduce reliance on expensive imported gasoline.
The story of Ethiopia’s EV adoption is significant for tech readers as it highlights how nations can leverage technology and policy changes to address economic challenges while promoting sustainability. By focusing on reducing oil imports and improving air quality, Ethiopia has shown that even in low-income countries, transitioning
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Originally published on Slashdot on 2/19/2026