Ethiopia's Ministry of Transport and Logistics has called to accelerate the country's transition to electric transport and reduce its reliance on imported fuels, Addis Standard reported on March 17. This comes amid reports of hour-long queues at fuel stations across the country amid supply concerns linked to the Iran war, as well as the Ethiopian government's increase of fuel subsidies to around 98 birr ($0.63) per liter for diesel and 73.56 birr per liter for gasoline.

Ethiopia's existing hydropower production capacity, exemplified through the Grand Ethiopian Renaissance Dam, will enable it to shift toward EVs more easily than other African countries. In January 2024, Prime Minister Abiy Ahmed announced a ban on the import of gasoline and diesel-powered vehicles into Ethiopia, and the government has instituted tax exemptions on the import of EVs. While the black market and secondary vehicle markets remain fully operational, Abiy's policies have led to an increasing use of EVs in large cities.