Ethiopia, a country located in East Africa, has recently attracted global attention. Not because of traditional tourist attractions, nor because of geopolitical changes, but because of a rather impactful policy: a total ban on the import of fuel vehicles, becoming the first country in the world to explicitly ban the entry of fuel vehicles.
There is a profound background to the introduction of this policy. Ethiopia has faced a severe foreign exchange shortage in recent years, which has directly affected the country's ability to import oil and other raw materials. As a country whose economy is mainly dependent on agriculture, Ethiopia is relatively weak and needs to import a large amount of fuel from abroad every year. However, due to the shortage of foreign exchange, Ethiopia can no longer afford gasoline and diesel, which has forced ** to take decisive measures and ban the import of fuel vehicles.
This decision is not ad hoc, as back in 2022, Ethiopia issued a ban on the import of 38 items, including cars and tricycles (with the exception of electric vehicles). The final implementation of this ban is set for the end of November 2023, and the import of gasoline vehicles has basically been banned.
Ethiopia's move has also raised questions about the energy transition. Many countries have medium- to long-term timelines for switching between old and new energy sources, for example, the European Union has approved a law banning the sale of conventional internal combustion engine vehicles from 2035. In contrast, Ethiopia can't wait for 2035, bringing forward the time to 2024 and aiming for imported cars. This is not only a statement of environmental protection, but also an adjustment of the domestic energy and economic structure.
It is worth mentioning that Ethiopia has abundant electricity capacity, with hydropower accounting for 90% of its electricity output, and wind power and waste-to-energy projects are also developing. This provides a good foundation for the development of electric vehicles, and also brings opportunities for Chinese car companies. In the era of gasoline vehicles, Japanese cars occupy a large share of the African market, but with the advent of the era of electric vehicles, Chinese automakers may be able to seize this opportunity and achieve new growth.
On the whole, Ethiopia's ban on fuel vehicles is not only an adjustment of the domestic economy and energy structure, but also a major impact on the global automotive industry pattern. Over time, we may see more countries join the energy transition and contribute to global sustainable development.