Ethiopia plans to convert 20 percent of its vehicle fleet to electric power by 2030, building on a sweeping transport policy shift aimed at cutting fuel imports, easing foreign currency pressures and advancing its green economy agenda.

The target was outlined during Ethiopia’s E-Mobility Week, where policymakers and industry experts said the government is preparing a package of fiscal incentives, including tax reductions, to accelerate the adoption of electric vehicles.

The transition is expected to cover both private cars and public transport fleets. Studies presented at the forum indicate that existing fuel-powered vehicles will also be gradually converted to electric alternatives, pointing to a phased approach rather than a sudden overhaul of the transport system.

The latest plan comes after Ethiopia moved earlier this year to halt imports of internal combustion engine vehicles, a decision largely driven by the country’s rising fuel import bill, which has reached several billion US dollars annually and remains a major drain on foreign exchange.

Officials say electric mobility is increasingly viewed not only as a climate intervention but also as an economic necessity. Ethiopia generates nearly all of its electricity from renewable sources, mainly hydropower, giving electric vehicles a cost advantage over fuel-powered cars while reducing exposure to volatile global oil prices.

To support the transition, the government has rolled out a series of tax and customs incentives, including exemptions from value-added tax, excise duties and surtaxes on electric vehicles, while maintaining lower import duties compared with conventional cars. Standards covering vehicle safety, battery performance and charging infrastructure have also been introduced.

The electric vehicle strategy forms part of Ethiopia’s broader climate resilience and green economy framework, which seeks to align environmental goals with long-term economic stability, according to discussions at the event, reported by Sputnik Africa.