Ethiopia’s EV Import Regulations in 2025: 8 Key Changes

Ethiopia has introduced eight major updates to its electric vehicle (EV) import regulations in 2025, aiming to reduce reliance on fuel imports, cut emissions, and strengthen the EV market. These changes follow the 2024 ban on gas-powered vehicle imports and leverage the country’s low electricity costs ($0.03/kWh) from renewable energy sources like the Grand Ethiopian Renaissance Dam. Here’s a quick summary of the updates:

Battery Safety Certification: Importers must now provide internationally recognized battery safety certifications, shifting responsibility from manufacturers.
English-Language Software: All imported EVs must have software operating in English, creating challenges for vehicles designed for non-English markets.
After-Sales Service Centers: Importers must establish service centers before issuing license plates to ensure maintenance and support for EV buyers.
Charging Station Requirements: Importers must install charging stations, adhering to strict distance and safety standards.
Updated Import Taxes: Lower taxes for EV imports (15%) and exemptions from VAT and other fees make EVs more affordable compared to gas-powered vehicles.
Gas Vehicle Import Ban: The complete ban on gas-powered vehicle imports continues, encouraging EV adoption despite infrastructure challenges.
Streamlined Documentation: New customs and import requirements focus on accuracy, including mandatory Certificates of Conformity (COC).
Qualification Process: Importers face reassessment under stricter criteria, including charging infrastructure and service center mandates.

These changes push Ethiopia toward its target of 500,000 EVs by 2030 but pose challenges for smaller importers due to higher costs and compliance requirements. While the government aims to expand charging stations and improve infrastructure, limited access to electricity and high upfront costs remain obstacles for both businesses and consumers.

Ethiopia targets 500,000 electric vehicles by 2030

1. New Battery Safety Certification Rules

On July 23, 2025, Ethiopia’s Ministry of Transport and Logistics announced a game-changing regulation for vehicle importers. Effective immediately, all current and future vehicle assessments must include battery safety certification that complies with international standards.

This rule represents a major shift in accountability, moving the burden from manufacturers to importers. Unsurprisingly, this change has stirred intense debate within the industry. As Eyasu Zekarias from Capital Newspaper explained:

"At the center of the controversy is a new mandate requiring importers to provide battery safety certification for electric vehicles (EVs), proving that batteries meet international safety standards. Importers argue this responsibility traditionally lies with manufacturers, not importers, and that in many cases, car and battery manufacturers are separate entities".

Importers are pushing back, citing the challenges of securing these certifications. Many importers purchase vehicles in bulk from suppliers rather than working directly with manufacturers, making it nearly impossible to obtain the necessary documentation – especially when car and battery production are handled by separate companies.

Adding to the pressure, companies that received certifications under the old guidelines must now return them for reassessment. If they fail to comply, their certifications will be invalidated. This immediate enforcement has raised concerns among stakeholders about its potential impact on the market. While the regulation aims to improve safety and service quality, critics warn it could unintentionally create barriers for smaller importers and favor larger players with established ties to manufacturers. As Capital Newspaper noted:

"The battery certification… though intended to improve safety and service quality – risk impeding the growth of vehicle imports, particularly in the electric vehicle segment".

For EV importers, this regulation signals a need to rethink their strategies. Building closer relationships with manufacturers or finding alternative ways to meet certification requirements may become essential – steps that could reshape the competitive landscape in favor of bigger, more connected companies.

2. English-Language Software Requirements

Ethiopia’s new 2025 regulations require all imported electric vehicles to have software that operates exclusively in English. This shift presents a significant challenge for importers, particularly because many EVs, especially those manufactured in China, are often designed with software tailored to specific regions and languages.

Eyasu Zekarias from Capital Newspaper highlighted the issue:

"Another significant source of complaint involves software language requirements. The new rules demand vehicle software to operate in English, which clashes with the reality that many Chinese-made vehicles popular in Ethiopia have firmware localized for specific regions and languages."

While some vehicle software can be adjusted by local technicians to function in English, many systems are not modifiable. This issue is further complicated by a lack of trained professionals capable of handling such technical changes. Because of this, importers describe the mandate as "absolutely unimaginable", pointing out the technical hurdles and high costs of sourcing vehicles with pre-installed English interfaces or modifying existing systems. These challenges have led to concerns that the regulation could hinder the growth of Ethiopia’s EV market and create significant barriers for new entrants.

This policy highlights the importance of carefully assessing software compatibility when sourcing vehicles for the Ethiopian market.

3. Required After-Sales Service Centers

Starting in 2025, Ethiopia’s regulations will require EV importers to set up their own service centers before they can issue license plates. These new rules are designed to address existing gaps in the market by ensuring that buyers have access to reliable after-sales services.

This move aligns with Ethiopia’s broader efforts to strengthen its EV market. By mandating in-house service centers, the government aims to boost vehicle reliability and build consumer confidence. According to the Ministry of Transport and Logistics, this policy is meant to address common challenges faced by EV owners, such as limited access to maintenance, spare parts, and software updates. Ahmedin Mohammed, President of the Association of Automotive and Sparepart Manufacturers and Head of O’clock Motors, explained the hurdles currently facing the market:

"Unless Ethiopia introduces its own selective, study-based policy for EV adoption, investors cannot front the cash. This is also difficult for FDI. There are innovative engineers and entrepreneurs in Ethiopia. If Ethiopia has a proper EV policy, they could engage in producing EV spare parts. EVs have software that also needs to be updated periodically. There is no such trend in Ethiopia. EV imports in Ethiopia are unregulated."

The high cost of spare parts further highlights these gaps in the market. Dawit Getachew, an Ethiopian EV buyer, shared a common concern among potential EV owners:

"Many of my friends think EVs are good looking, but still, there are a lot of fears like how they have to change the batteries every 3 to 10 years."

In response to these challenges, major manufacturers are already adapting. For instance, BYD has partnered with Moenco, and GEELY has teamed up with Kerchanshe Group to establish service networks.

However, these requirements also bring significant hurdles, particularly for smaller importers. Managing all maintenance and updates in-house can lead to increased operational costs, making it harder for smaller players to compete.

4. Charging Station Installation Requirements

Starting in December 2024, Ethiopia’s Electric Vehicle Charging System (EVCS) Directive No. 1034/2024 will require EV importers and assemblers to install charging stations as a condition for entering the market. These regulations are part of Ethiopia’s ongoing efforts to modernize its EV import framework and prepare for the growing demand for electric vehicles.

State Minister for Transport and Logistics, Berho Hassan, highlighted the importance of this infrastructure initiative:

"State Minister for Transport and Logistics, Berho Hassan, emphasized the importance of infrastructure readiness, noting that many companies have already complied by establishing charging stations."

The directive lays out specific requirements for charging infrastructure. Fast-charging stations must be available every 31 miles, while heavy vehicle charging points must be spaced every 75 miles. Public charging service providers are required to obtain a permit from the Fuel and Energy Authority within six months and have their tariffs approved. Residential charging, however, will remain priced at standard household electricity rates.

To ensure safety and reliability, all charging stations must adhere to international technical and safety standards. Installations must be carried out by licensed professionals using certified equipment. Bahru Oljra, Executive Director of Energy Sector Control at Ethiopia’s Petroleum and Energy Authority, elaborated on the directive:

"The directive, according to him, mainly deals with licensing for charging stations, charging service tariff, power supply level, and security."

Ethiopia’s plans for expanding charging infrastructure are ambitious. Currently, there are just over 100 charging stations, most of which are concentrated in Addis Ababa. However, the government aims to increase this number to more than 2,300 stations to support its goal of having 500,000 EVs on the road within the next decade.

Early results from new charging hubs are already providing valuable insights. For example, between February 11 and early April 2025, Ethio Telecom‘s Bole–Megenagna charging station served 14,280 electric vehicles, delivering a total of 376,574.72 kWh of electricity.

While over 400 EV importers face significant upfront costs to meet these requirements, the overall goal is to stabilize the EV market and build consumer trust. This expansion of charging infrastructure plays a critical role in Ethiopia’s broader regulatory push to transform its EV market.

5. Updated Import Tax Structure

In 2025, Ethiopia made major changes to its EV import tax structure to encourage electric vehicle adoption and boost local manufacturing. The government eliminated several tax categories that had previously inflated import costs, adopting a strategy that promotes both direct imports and local assembly. Here’s how the new system works for each category.

Direct EV imports now face a 15% customs duty and are exempt from VAT, consumption tax, and surplus tax. This is a stark contrast to internal combustion vehicles, which are subject to customs duties of 35%, excise taxes as high as 100%, a 10% surplus tax, and a 15% VAT – resulting in combined taxes exceeding 60%.

"The import of EVs into Ethiopia will be exempt from value-added tax, consumption tax, and surplus tax, and import tariffs will also be reduced." – GuangcaiAuto

These tax cuts have had a real impact. After the exemptions were introduced in September 2022, electric car prices dropped by 40–50%. For semi-assembled EVs, the benefits are even greater – customs duties are reduced to just 5%, while the VAT, consumption tax, and surplus tax exemptions remain.

In January 2025, new measures were introduced to further incentivize local assembly. Tariffs on assembly kits were increased to push manufacturers toward greater local production. Customs duties for Completely Knocked Down (CKD) vehicles rose from 5% to 25%, while Semi-Knocked Down (SKD) vehicles saw an increase from 15% to 35%. Additionally, a new 10% surtax was applied to these operations.

Gosa Tefera, Director of Tax Incentives at the Ministry of Finance, explained the reasoning behind these changes:

"The Ministry of Finance (MoF), in collaboration with stakeholders, has conducted research to boost electric vehicle (EV) adoption and support local assemblers… Subsequently, the Ethiopian Customs Commission (ECC) revised import levies."

This two-pronged approach encourages consumers to choose fully assembled EVs, which carry lower taxes, while also motivating manufacturers to invest in local assembly facilities. Across all categories, the withholding tax remains unchanged at 3%. These changes position Ethiopia as a leader in EV import incentives, aligning with its broader goal of reducing reliance on fossil fuels.

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6. Complete Ban on Gas Vehicle Imports

In January 2024, Ethiopia made history by becoming the first country to completely ban the import of internal combustion engine (ICE) vehicles. This bold move has reshaped the nation’s automotive industry and sped up its transition to electric vehicles (EVs).

The decision was driven by economic pressures. Ethiopia faced a staggering $7.6 billion annual fuel import bill, with gasoline prices doubling from $0.40 to $0.80 per liter between January 2023 and January 2025. To conserve its limited foreign currency reserves and stabilize the economy, the government opted for a drastic shift. Journalist Sarah Assefa explained the reasoning behind the policy:

"The whole reason that this happened was also to save like foreign currency that they spent on fuel which was like around like 7.5 billion a year"

Power Systems Research echoed this sentiment, emphasizing the financial motivations behind the policy:

"The motivation wasn’t environmental, but economic: A high fossil fuel import bill of over US$5 billion a year, was taking a huge chunk of the country’s scarce foreign currency resources. Energy security and self-sufficiency were other major drivers."

This economic pivot has not only altered market dynamics but has also opened the door to new business opportunities.

Market Impact and Opportunities

The import ban has shaken up the automotive market, creating opportunities for EV importers, especially from China. What some have called a "significant market opportunity" has already begun to materialize. According to government data, Ethiopia now has over 100,000 EVs on its roads, making up about 8.3% of the country’s 1.2 million registered vehicles.

Although EV prices range between $12,727 and $17,677 – steep compared to average monthly salaries of $24.60 to $190.90 – their operating costs are far lower. Taxi driver Firew Tilahun shared how his switch to an EV slashed his monthly expenses from 20,000 birr ($105) on fuel to under 3,000 birr for recharging.

Real-World Experiences

The shift to EVs is evident in the day-to-day lives of consumers. Deghareg Bekele, an architect in Addis Ababa, described his relief after purchasing a Volkswagen electric car in early 2025:

"I’d have to wait two to three hours, even if I got there in the early morning, and they often run out of petrol before it’s your turn. Having an EV saves me lots of time. I have no regrets."

Challenges and Infrastructure Concerns

While the government has pushed for the expansion of EV charging networks, the infrastructure remains a major hurdle. Currently, Ethiopia has just over 100 public charging stations, mostly concentrated in Addis Ababa. This falls far short of the national target of more than 2,300 stations.

Lema Wakgari, a coffee export manager, highlighted the pressing need for more charging stations:

"They need to build more charging stations – it’s a must. Even in Addis there aren’t many available. No electric vehicles are driving outside the city right now. This car can go 420km. After that, what are you going to do?"

Looking ahead, the government has ambitious plans to increase the number of EVs to 500,000 by 2030 and to convert 432,000 gas-powered vehicles to electric models within the next decade. The Grand Ethiopian Renaissance Dam, which began operating in September 2025, is expected to double the country’s electricity output. This additional energy capacity will be critical for addressing current charging infrastructure issues and supporting the growing number of EVs nationwide.

7. New Documentation and Customs Requirements

Ethiopia has streamlined its customs clearance process for electric vehicle (EV) imports in 2025, but accuracy in documentation remains key to avoiding delays.

A Certificate of Conformity (COC) is now a cornerstone for importing new or nearly new EVs. This document verifies that the vehicle meets Ethiopian safety and environmental standards. It includes a Vehicle Inspection Report, Environmental Compliance Sheet, and Vehicle Type Approval Certificate. According to Charge Ninja, a company specializing in EV imports from China to Ethiopia, the COC is mandatory for customs clearance. This requirement plays a vital role in creating uniformity in EV import regulations.

Beyond the COC, importers must provide several other essential documents:

A commercial invoice with details about the vehicle, pricing, and buyer-seller information.
A packing list outlining all goods and packaging specifics.
A Bill of Lading for sea shipments or an Air Waybill for air transport.

An Import Permit from Ethiopia’s Ministry of Trade is also required. To secure this, applicants need to submit identification, proof of company ownership, and details about the organization’s owner or manager. Additionally, a Tax Identification Number (TIN) Certificate is necessary for all import-related transactions.

For international shipments, further documentation is needed. For instance, All TransportDepot, a logistics company specializing in vehicle shipping to Ethiopia, highlights the importance of a Certificate of Export when shipping EVs from countries like the United States. This document is particularly critical under Ethiopia’s 2025 requirements.

While the customs declaration process has been simplified, it still demands thorough preparation. Upon the vehicle’s arrival at the Ethiopian border, importers must submit a customs declaration along with all required paperwork and pay applicable duties. The rates include a 15% customs duty for completely built units (CBUs) or 5% for semi-knocked down (SKD) kits, plus a 15% VAT. Once the customs inspection is complete and approved, a release notice is issued, allowing the importer to collect the vehicle.

After clearing customs, registering the vehicle with the Ethiopian Road Transport Authority involves additional steps. Importers must present proof of identity, proof of residence, the customs clearance certificate, a vehicle inspection report, the buyer’s driver’s license, and an International Insurance Policy Certificate. Moreover, the Road Authority Transport and Communication Ministry Permit, issued to the shipper, must be paired with a pre-shipment inspection report to confirm the vehicle meets Ethiopian standards before it reaches the border.

Given the complexity of these requirements, partnering with experienced logistics providers is highly advisable. Companies well-versed in Ethiopian EV import regulations can help ensure all documentation is in order, minimizing the risk of delays or rejections.

8. Updated Qualification and Assessment Process

Ethiopia’s Ministry of Transport and Logistics has introduced a new qualification process for electric vehicle (EV) importers, effective July 23, 2025. Under this updated system, all importers – regardless of prior approval – must undergo reassessment. Notably, companies that were qualified or renewed their credentials between July 8 and July 23, 2025, are required to surrender their existing certifications and complete the new assessment to avoid disqualification.

The revised process builds on earlier regulatory changes and now centers around four key requirements:

Battery safety certification for all EVs, as previously discussed.
English-language software operation, ensuring ease of use and compatibility.
In-house after-sales service centers, a continuation of earlier mandates.
Charging infrastructure installation, requiring importers to set up two compliant charging stations, each costing up to 10 million Ethiopian birr (approximately $180,000).

These updates are part of Ethiopia’s broader strategy to reshape its EV market, aligning qualification standards with prior mandates to create a cohesive regulatory framework.

However, the changes have sparked criticism within the industry. Eyasu Zekarias from Capital Newspaper highlighted concerns from importers who view the charging station requirement as prohibitively expensive. Many fear these added costs could drive smaller players out of the market. This regulatory shift comes as Ethiopia works toward an ambitious goal: increasing its EV fleet to 113,000 vehicles by 2030, representing nearly 28% of the total vehicle population.

For companies looking to enter or remain in the Ethiopian EV import market, these new rules demand significant investment in infrastructure and operational capabilities. This could restrict participation to businesses with substantial resources, potentially reshaping the competitive landscape.

These changes reflect Ethiopia’s effort to build a safer, more competitive EV market while pushing forward its vision for a greener future.

Regulation Comparison Table

The rules for importing completely built units (CBUs) differ significantly from those for semi-knocked down (SKD) kits. Here’s a breakdown:

Import Tax and Setup Comparison

Regulation Category	Completely Built Units (CBUs)	Semi-Knocked Down (SKD) Kits	Key Differences
Import Tax Rate	15%	5%	CBUs face three times higher import duties
Value Added Tax (VAT)	15%	15%	VAT applies equally to both types
Local Infrastructure	Minimal local infrastructure	Local assembly facility required	SKD demands significant local investment
Market Entry Speed	Fast and straightforward	Slower due to assembly setup	CBUs provide quicker market access
Total Tax Burden	30% (15% import + 15% VAT)	20% (5% import + 15% VAT)	SKD has a 10 percentage point lower tax burden

Charging Infrastructure Requirements

Until December 2024, Ethiopia lacked a comprehensive framework for EV charging stations, with just over 100 stations nationwide as of September 2025. However, the updated EV Charging System Directive No. 1034/2024 introduced new infrastructure requirements for importers and assemblers:

Infrastructure Requirement	Previous Policy (Pre-Dec 2024)	Current Policy (Post-Dec 2024)	Notes
Charging Station Mandate	No requirements	Must establish EV charging stations for market entry
Licensing Requirements	None	License required from the Petroleum and Energy Authority
Distance Standards	No specifications	Fast-charging stations every 31 miles and heavy-duty stations every 75 miles	31 miles ≈ 50 km; 75 miles ≈ 120 km
Technical Standards	Unregulated	Must adhere to international safety standards
Professional Requirements	None	Installations must be performed by licensed professionals

Documentation and Compliance Updates

The updated regulations have introduced additional compliance requirements for companies working in Ethiopia’s EV market:

Battery safety certification is now mandatory.
Vehicle software must be operable in English.
Establishing after-sales service centers is required for all market participants.

Companies that renewed or acquired their import qualifications before July 8, 2025, must now surrender those credentials and go through a full reassessment under the updated qualification process.

Ethiopia is aiming to install over 2,300 charging stations by 2030, a goal that reflects the country’s push to modernize its EV infrastructure. However, industry reactions have been mixed. Lema Wakgari, a coffee export manager, emphasized the urgency of building more charging stations, stating:

"They need to build more charging stations – it’s a must."

Meanwhile, the CEO of a major ride-hailing company in Addis Ababa shared a more nuanced perspective:

"When this policy was introduced, I thought it would be a spectacular failure because we don’t have good power infrastructure, we have a lot of power outages and not many charging stations. Now, I’m cautiously optimistic."

These sweeping changes heavily favor larger companies with the financial resources to meet the new requirements, such as investing in charging infrastructure and proprietary service centers. Smaller businesses, however, may face significant challenges in adapting to these stricter regulations.

Conclusion

Ethiopia has taken a bold step in reshaping its vehicle import policy, becoming the first country to ban imports of internal combustion engine vehicles. This ban, set to extend to semi-knocked down (SKD) and completely knocked down (CKD) kits by May 2025, reflects the nation’s commitment to advancing its clean energy goals. These regulatory changes are part of a broader strategy to address energy security concerns and reduce economic pressures.

One key aspect of this shift is the new charging directive, which requires fast-charging stations every 31 miles and heavy-duty stations every 75 miles – an infrastructure plan designed to support the growing adoption of electric vehicles (EVs).

However, the road ahead is not without challenges. Currently, only 55% of Ethiopia’s population has access to electricity, and the power grid is plagued by frequent outages. Manufacturers like Dodai and Woda Vehicle Manufacturing Plc have highlighted several obstacles, including limited access to electricity, a lack of skilled mechanics, and challenges in securing financing – particularly in rural areas.

The government has set an ambitious target of reaching 500,000 EVs within the next decade, a significant leap from the current base of just over 100,000 vehicles. Achieving this goal will require collaboration across multiple sectors – transport, energy, industry, and finance – as well as ongoing international support to expand charging infrastructure in underserved regions.

For importers, buyers, and manufacturers, staying informed about regulatory updates will be essential to navigating Ethiopia’s rapidly evolving EV market.

FAQs

How will Ethiopia’s new requirement for English-language software in EVs impact vehicle availability and costs?

Ethiopia’s requirement for English-language software in imported electric vehicles (EVs) could narrow the range of models available in the country. This is particularly true for vehicles from regions like China and other parts of Asia, where EV software is often developed in local languages. As a result, consumers might face fewer choices and a more limited selection in the market.

On top of that, automakers may need to modify or completely reprogram their software to comply with the new mandate. This could lead to higher production and import costs, with those extra expenses likely being passed along to buyers. In turn, this might push up EV prices in Ethiopia. The regulation could also complicate and delay the import process, creating additional hurdles for manufacturers from non-English speaking countries to compete in the Ethiopian market.

How will Ethiopia’s new battery safety certification rules affect small EV importers in 2025?

Ethiopia’s revised battery safety certification rules are set to bring more stringent requirements for all EV importers, including smaller businesses. Under these new regulations, batteries will need to comply with specific safety standards, which could lead to higher costs and added complexities in the import process.

For smaller importers, this shift might create hurdles, such as increased certification expenses and the challenge of navigating updated compliance procedures. These factors could affect their market competitiveness and potentially delay the introduction of EVs into Ethiopia. That said, gaining an early understanding of these regulations can help importers better prepare and adjust to the changing landscape.

What steps is Ethiopia taking to address limited electricity access and charging infrastructure to support its goal of 500,000 EVs by 2030?

Ethiopia is stepping up its game in building a stronger EV charging network and expanding electricity access. A recent milestone is the installation of ultra-fast charging stations in Addis Ababa, with plans underway to increase the number of these stations across the country. Both government initiatives and private sector investments are driving this progress.

To encourage more widespread EV use, the government is also prioritizing renewable energy projects to boost electricity availability nationwide. The goal is to establish a dependable energy network that can meet the rising demand for EVs and charging infrastructure, pushing Ethiopia closer to its ambitious target of 500,000 electric vehicles by 2030.