The World's Most Aggressive EV Push Isn't in China | Bloomberg Primer

Enacting an immediate overnight ban on new gasoline and diesel imports to address a severe balance-of-payments crisis, Ethiopia became the first nation to eliminate fossil fuel vehicle imports without a gradual phase-out. Driven by cheap hydroelectric power from the Grand Ethiopian Renaissance Dam and strategic partnerships with China, the country witnessed a rapid surge in electric vehicle adoption, raising the EV share of new registrations to over 60% in 2024. Despite these gains and early assembly operations, the transition faces challenges including high purchase costs relative to low national incomes, limited electricity access, and emerging regional security threats.