On Monday, Ethiopia’s Transport and Logistics Ministries presented a six-month report to the Urban Development and Transport Standing Committee in the House of People’s Representatives (Ethiopian Parliament).
According to a news update from the parliament, Alemu Sime, the Minister for Transport and Logistics, announced the completion of Ethiopia’s Logistics Master Plan. The minister mentioned that stakeholders were consulted, and their feedback was received during a discussion. However, no further details on the Logistics Master Plan were provided.
Alemu Sime highlighted the implementation of new practices in strategic affairs and addressed the committee on the Ministry’s initiatives related to “Green Transport.”
“…a decision has been made that automobiles cannot enter Ethiopia unless they are electric ones,” he stated.
He further explained that efforts to establish charging stations for electric cars are in progress. One of the reasons behind this decision is Ethiopia’s inability to afford importing gasoline due to limited foreign exchange resources – according to the minister.
There was a report that the Ethiopian government introduced Value Added Tax (VAT) Excise tax, and Sur Taxes exemptions for electric cars in 2022.
The news update on the Ethiopian Parliament’s social media page lacks specific details. For instance, it doesn’t clarify whether vehicles in transit from overseas before the decision will be subject to the new policy. The affordability of electric cars for a significant portion of the Ethiopian population poses a potential challenge while not forgetting the percentage of the population able to afford a car remains negligible.
The ministry’s report also touched on other activities. Revealed that a study has been conducted to launch domestic water transport on the River Baro. It said that ” a study has been undertaken to launch domestic water transport on River Baro and an effort is underway to start it.” However, the news report did not provide specifics about the ongoing efforts. Additionally, the minister reported that actions are being taken to address demands for air transport. Identification of locations for potential new airports have been completed. Again detail is missing regarding locations and numbers of the projected new ports.
In addressing challenges within the sector, such as traffic accidents, the Ministry emphasized the necessity of coordination and collaboration with stakeholders to conduct thorough inspections and follow-ups to resolve issues in the transport sector.
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