• Ethiopia expands ICE vehicle import ban to include trucks
• EV numbers rise amid push for carbon-neutral transport by 2030
• Hydropower, LNG support shift, but infrastructure gaps remain

The Ethiopian government has expanded its ban on internal combustion engine (ICE) vehicle imports to include gasoline and diesel trucks, local media reported on Thursday, October 2, 2025. The measure follows a similar restriction on private ICE vehicles introduced in January 2024. As part of a broader energy transition push, the government also announced plans to convert 2,000 buses to natural gas.

The policy marks a major step in Ethiopia’s effort to decarbonize its transport sector and reduce its dependence on fossil fuels.

The import ban aligns with Ethiopia’s Climate-Resilient Green Economy (CRGE) plan, which targets carbon-neutral growth by 2030. Beyond reducing emissions, the move aims to ease pressure on the country’s balance of payments, strained by fuel imports estimated to cost nearly $7 billion a year.

The results are already visible. Government data show that around 100,000 electric vehicles (EVs) are now on Ethiopian roads, and the Ministry of Transport and Logistics plans to expand that number to 440,000 by 2030. For individual users, fuel expenses have reportedly fallen by nearly half, while transport operators are also expected to benefit from lower running costs as heavy vehicles shift to electric power.

Hydropower Drives Clean Mobility

Ethiopia enjoys a structural advantage in its green mobility drive: more than 90% of its electricity comes from hydropower. The newly commissioned Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile exemplifies this strength, allowing the country to provide ample, low-cost renewable energy.

Complementing electrification efforts, Ethiopia inaugurated a liquefied natural gas (LNG) plant in early October with an annual capacity of 111 million liters, expandable to 1.33 billion liters after a second phase. The facility is expected to play a key role in converting buses and trucks to natural gas.

Still, significant obstacles remain. Addis Ababa currently has only about 100 public charging stations, far short of the estimated 2,300 required. Authorities plan to double the number of stations in the short term, using additional power from the GERD.

Other hurdles include a shortage of specialized repair services and difficulties sourcing spare parts, especially for lesser-known Chinese EV brands that dominate the local market. In addition, the limited driving range of most electric vehicles, around 200 kilometers on average, continues to constrain travel options and dampen adoption among some users.

Henoc Dossa