Incentives may fuel East Africa green transport growth

Significance Driven in part by foreign exchange shortages and petroleum import costs, the measure also seeks to leverage Ethiopia’s own electricity resources to underpin a new ‘green transport’ model, supported by the accelerating uptake of electric vehicles (EVs). Impacts East Africa uses one of the world’s highest proportions of renewable energy, meaning EVs could largely be run on local green energy sources. Low levels of access to electricity across the region will constrain the uptake of EVs, especially outside of urban centres. Beyond tax breaks, policies and regulation for EVs remain poorly defined, which may result in risks in areas such as insurance and repairs.