A year ago, the Ethiopian government introduced some incentives to catalyze the adoption of electric vehicles. Ethiopia’s Ministry of Finance exempted all electric vehicles from VAT, surtax, and excise tax! They went further to exempt completely knocked-down kits from customs duty tax. This move was made to encourage the local assembly and component manufacturing sectors for electric vehicles. Semi-knocked-down kits now attract a customs duty tax of 5% and fully built electric vehicles will have a customs duty of 15%.
Ethiopia’s Minister of Transport and Logistics has a 10-year plan and intends to support the import of at least 4,800 electric buses and 148,000 electric automobiles as part of that plan to catalyze the adoption of electric vehicles in the country.
It’s been a year now, so let us check in to see how this move has affected Ethiopia’s EV scene. Earlier this year, Axel Conrad, founder of e-Car Namibia, gave an insight into how the Chinese EV market is already having some influence in Ethiopia. Axel spotted several made-in-China VW ID models at showrooms of independent dealerships which import cars directly. He also spotted several ID models already driving on the roads of Addis Ababa. These ID models are imported as brand new or low mileage models into Ethiopia from China and include the ID.4 and ID.6. Axel says in a LinkedIn post that the ID.6 models seem to be selling quite well, as he spotted quite a few of them driving on the roads of Addis Ababa.
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