Regulating Ethiopia’s Shift to Electric Vehicles: A Legal and Institutional Framework
In Ethiopia there is a shift from petroleum cars to electric cars within the past few years. The government of Ethiopia has been working to support and realize the shift, from the regulating customs by imposing tariffs to discouraging car imports and facilitating Electric Vehicle (EV) charging infrastructures. The government has demonstrated its commitment by establishing a legal and institutional framework through legislation and its implementation.
Among the efforts made to realize this transition, one significant regulation is The Electric Vehicles charging system (EVCS) directive no 1034/2024. The Ethiopian Petroleum and Energy Authority has issued the directive with the power conferred to it under article 40 (2) of the energy proclamation 810/2013 and article 82 of the council minister’s energy regulation no 444/2019. The directive so as to enable faster adoption of electric vehicles intends to give assurance for safe, reliable, accessible, and affordable charging infrastructure. Besides, the directive aims to determine reasonable electricity tariffs for charging station owners, electric vehicle owners and off grid systems.
Since, the sector is part of the business industry; the directive adopted to create opportunities to entrepreneurs to generate income by involving as a service provider meeting the minimum requirements outlined in the directive. Thus, the Petroleum and Energy Authority is mandated to license business’s as per the requirement of the law, to set standards and to set specification in installation and operation. Be that as it may, the law encourages the use of renewable energy for reducing atmospheric temperature and reducing carbon emission as part of concerned sovereign world actor.
The content of the directive
The directive is aimed to apply to all individuals and business that provide and utilize any EVCS in Ethiopia irrespective of the source of its electricity supply, whether from national grid or off grid. In addition, the law is applied to those who provide electricity suppliers for the service of EVCS.
The directive consists of 25 articles, covering aspects from its title to its effective date. It introduces possible EV charging services that are at home EV charging, Public EV charging stations services, and captive charging station services. Moreover, the law listed out the right and obligations of EV charging service providers, electric vehicle owners and Electric supply providers. Among other provisions, article 7 of the directive entitles electric vehicle owners to reasonable compensation for any damaged caused to their vehicle and equipment’s due to substandard charging system.
The law provides charging, safety, and location requirements with power quality, metering and installation and operation procedure. Moreover, the law sets the type and classes of license with all general and specific procedures for application. Additionally, the law considers the renewal, suspension and revocation of licenses. Last but not the least, the law provides the mandate to and how the tariffs are determined.
Legal Disclaimer- This document is for informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the information provided, no guarantee is given regarding its completeness or applicability to specific circumstances. Readers should seek professional legal counsel before making any decisions based on the content of this document. The author and publisher disclaim any liability for any loss or damage arising from reliance on the information herein.
Ethiopia’s Customs Valuation Reform: Bridging the Gap Between Directive and Practice
Customs valuation has long stood at the centre of Ethiopia’s trade, investment, and foreign exchange challenges. While revenue protection and foreign currency control remain legitimate state objectives, the persistent reliance on arbitrary reference prices—particularly under Customs Valuation Directive No. 158/2011—has created serious distortions in trade administration, banking operations, and domestic taxation. The recent circular issued by the National Bank of Ethiopia on January 26, 2026, requiring banks to use customs prices as a reference for Letters of Credit, has once again brought this debate to the forefront, exposing the far-reaching consequences of valuation practices that diverge from internationally accepted principles.
Legal Opinion in Capital Markets: Standards, Independence, and Verification
A) Why Legal Opinion?
Lawyers are envisaged to play pivotal roles in capital market especially in security registration.
Investor Protection: Legal opinions often assess existential risks like litigation, asset ownership, and regulatory compliance. A biased opinion could mislead investors.
Market Integrity: Capital markets rely on trust. Conflicted legal opinions undermine transparency and fairness.
Foreign national’s ownership rights of residential houses, Proclamation No. 1388/2025
The ownership rights of foreign nationals over residential houses are governed by Proclamation No. 1388/2017. The proclamation consists of twenty-one (21) articles organized into four sections.
Ethiopia’s Investment Incentive Reform 2026: Key Legal Shifts from Regulation 517/2022 to 586/2026
Ethiopia has significantly revised its investment incentive regime with the replacement of Investment Incentive Regulation No. 517/2022 by the new Regulation No. 586/2026. This reform shifts the system from multi-year tax holidays and broad customs exemptions to a performance-based framework with targeted incentives. In essence, blanket income tax holidays are eliminated, replaced by reduced tax rates tied to priority sectors and performance, and new incentive categories (such as Special Economic Zones, start-ups, and green investments) have been introduced. The core customs duty benefits are largely retained but with refined conditions. This legal update outlines the key changes between the two regulations across five dimensions: tax incentives, customs duty incentives, administrative procedures, eligibility criteria, and sectoral priorities, and concludes with implications for investors and practitioners.
Legal Insight: New Developments in Ethiopia’s Foreign Exchange Framework
Following the comprehensive macroeconomic reform program, the National Bank of Ethiopia (NBE) has undertaken significant measures aimed at liberalizing the foreign exchange regime and fostering the development of a more efficient and market-oriented forex system. A central pillar of these reforms has been the gradual removal of current account restrictions and the introduction of regulatory flexibility designed to stimulate foreign exchange inflows, encourage investment, and enhance market confidence.
The licensing and supervision of banking business reserve requirements (9th replacement) directive number SBB/97/2025
By Kaleegziyabher Gossaye.
Legal update on The licensing and supervision of banking business reserve requirements (9th replacement) directive number SBB/97/2025
Risk Based Capital Adequacy Requirements for Banks-Directive No. SBB/95/2025
By Kaleegziyabher Gossaye.
The directive is organized into six parts. The first part outlines the general provisions of the directive. The second part deals with definition of capital. The third part discusses the capital requirements for credit risk. The forth and the fifth part extend to the capital requirements of market risks and operational risks. The last part, but not the least, is dedicated to miscellaneous provisions.
Ethiopia’s Amended Income Tax Proclamation: Implications for Revenue, Professionals, & Investors
The goals of the amendment are typically outlined in the preamble of the proclamation. Therefore, the objectives mentioned in the preamble include: improving revenue collection through adjustments to the rates applied to certain incomes; expanding the tax base; creating an efficient system of tax incentives; and curbing tax avoidance strategies, which encompass restrictions on cash payments.
U.S. International Tax Law in a Coffee Bean
The highlands of Ethiopia are widely regarded as the birthplace of coffee. The story of Ethiopian coffee dates back to around 850 AD, when both Arabica and Robusta coffee are believed to have originated. Today, Ethiopia remains the top coffee producer in Africa, cultivating over 5,000 varieties. Coffee is a major global export for the country, where agriculture remains a key driver of the economy. Ethiopia also ranks first in wheat production and third in maize production across Africa.
Tax Audits in Crisis: Can Ethiopia’s New Directive Restore Trust in the System?
Ethiopia has introduced new tax audits, conducting procedures, and the Assessment Directive No. 1063/2025, marking a significant development in its tax history. Tax audits represent a major challenge within the Ethiopian tax system; the implementation of tax audits contradicts the voluntary compliance expected from taxpayers under the self-declaration tax policy. During these audits, tax auditors often seek additional taxes without a legal foundation, aiming to meet monthly revenue collection targets. This trend significantly harms taxpayers, leading to non-compliance with tax laws and fostering illegal practices.