In 2024, Ethiopia made history by becoming the first country in the world to ban the sale and import of new internal combustion-powered vehicles. The decision was based on several factors, but, surprisingly, environmental reasons were quite low on the list.
The major reason for this seemingly bizarre action was economics. As a poor country with no oil reserves, Ethiopia was importing US$ 4 billion of refined fuel every year – US$ 4 billion may not seem like a big number, but to a country whose total budget is only US$ 14 billion, it’s massive.
The second major reason behind the decision was the completion of the Grand Ethiopian Renaissance Dam (GERD) which brings in massive amounts of energy to this energy poor country (it doubled the country’s generating capacity).
World governments and transportation analysts are watching Ethiopia’s electric experiment with interest, and many have expressed surprise at how well the African nation has handled the transition.
By late 2025, there were about 115,000 EVs are on Ethiopian roads, representing 8.3% of the total vehicle fleet but with EV owners spending only about $4 per month on charging, (compared to an average $27 per month for gasoline) the experiment is a resounding success.
Source: Electrek: Read The Article
PSR Analysis: Whilst Ethiopia doesn’t have a massive charging infrastructure, the savings are absolutely massive especially when you consider that average wages are around $50 per month. It makes so much sense to ban the import of ICE powered cars and move to EVs especially when solar and wind can support EV’s and the country doesn’t manufacture cars, so why should they create a dependence on oil? PSR
