Ethiopia Extends ICE Ban, Halts Import of Knocked-Down Vehicle Kits

Ethiopia has banned the import of all semi- and completely knocked-down fuel-powered vehicles from entering the country. This includes both automobiles and gas-powered three-wheeled rickshaws headed to assembly plants in the country, excluding ambulances and hybrid cars. A letter by Ethiopian Customs Commissioner Debele Kebeta was sent out to 18 branch offices yesterday informing them to halt the facilitation of imports for the vehicles.

The Commissioners' ordinance was prompted by a letter the prior month from the Minister of Industry, Melaku Alebel, which raised concerns over the continued import of knocked-down gas-powered vehicles by local companies. Ethiopia banned the import of internal combustion engine (ICE) vehicles for personal use last year as part of its Climate Resilient Growth Economy (CRGE) initiative. The regulatory tweak, which built on prior efforts to sideline ICEs through higher tariffs, has contributed to the plummeting price of gas-powered vehicles in the country. 

While most vehicle assemblers in Ethiopia have shifted to EVs in recent years, a few companies continue to assemble gas-powered automobiles for the local market. Most are rickshaw assembly plants that have locked in on the demand for the three-wheeled transport alternative in rural Ethiopia. 

Ethiopia also plans to levy motor vehicle circulation taxes by next year to further deter reliance on ICEs.