Ethiopia has intensified its shift toward electric mobility by banning the importation of fuel-powered trucks, Prime Minister Abiy Ahmed announced on Friday.
The directive, which took immediate effect, was declared during the inauguration of a new refinery and fertiliser plant in Gode, Somali Regional State. The move extends the government’s earlier prohibition on gasoline and diesel cars, introduced in January 2024, to cover one of the last major categories of fossil fuel-powered vehicles.
“From today, just as with automobiles, the importation of fuel-powered trucks will no longer be allowed,” Abiy stated, underscoring his administration’s commitment to the country’s green economy drive.
The original ban was largely motivated by economic pressures, as Ethiopia had been spending more than $7 billion annually on fuel imports. The measure has since become central to the nation’s Climate-Resilient Green Economy (CRGE) strategy, which seeks to achieve carbon-neutral growth by 2030.
While the latest expansion is expected to disrupt the logistics and freight sectors—both heavily dependent on diesel trucks—the government is banking on its abundant renewable energy resources to smooth the transition. Over 90% of Ethiopia’s electricity is generated from hydropower, offering a strong foundation for the development of an electric transport system.
To support the shift, authorities have rolled out sweeping tax incentives for electric vehicles (EVs). Unlike fuel-powered cars, which attract duties and taxes exceeding 300%, EVs enjoy low tariffs, while imported knock-down kits for local assembly often qualify for tax waivers. These policies have already boosted EV imports and spurred the growth of local assembly plants for passenger vehicles and buses.
The inclusion of heavy-duty trucks in the ban is expected to accelerate investment in electric freight solutions, positioning Ethiopia as one of the first countries worldwide to fully restrict fossil fuel vehicle imports. However, experts have warned that the lack of widespread EV charging infrastructure outside urban areas may pose challenges, particularly for sectors such as agriculture and cross-border trade.
Despite the hurdles, Ethiopia’s latest policy cements its role as a frontrunner in Africa’s green mobility push, reflecting an ambitious bid to combine environmental sustainability with long-term economic resilience.
