Beiqi Foton Motor Co., Ltd, a Chinese vehicle manufacturer, has announced its desire to engage in the production of electric vehicles (EVs) in Ethiopia to support the country's transition to electric mobility.

The announcement was made on Thursday as the Chinese automaker's delegation met with Dengue Boru, Ethiopian minister of state for transport and logistics, to discuss the company's plan to begin manufacturing EVs in the East African country.

Boru said the government welcomes the Chinese company's intention to produce EVs in Ethiopia by offering a wide range of tax-related and other incentives.

He stressed that the government is committed to curbing the effects of climate change through the introduction of electric-powered vehicles and the planting of billions of trees across the country.

The Ethiopian government has allowed duty-free importation of EV components to promote the use of electric vehicles and facilitate technology transfer in response to a global fuel price hike and climate change.

According to the Ethiopian Ministry of Transport and Logistics, Ethiopia spent 6 billion U.S. dollars on fuel imports in 2023, more than half of which went to fueling vehicles. In addition, pollution levels in city centers from these vehicles are reportedly alarming.

The ministry announced earlier this year that the country has set a target of importing 439,000 EVs between 2021 and 2030.

Chang Rui, chief executive officer of the Beiqi Foton Motor Company, said his company will make greater contributions to the production of energy-saving and pollution-free EVs in Ethiopia.

"The Beiqi Foton Motor Company will also conduct scientific and technological research to further promote the sector in Ethiopia," Chang said, adding that the company will soon start producing and marketing electric cars in Ethiopia. 

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