Ethiopia Makes Motorboats Tax-Free for a Year to Boost Lake Tourism
BaseLine Team
14 Sep, 2025
In a bold move to turn its 20 underused lakes into tourist magnets, Ethiopia has made all motorboats tax- and duty-free for one year. The government hopes the policy will turbocharge a key part of the country’s tourism sector, already one of the five pillars of the economy.
The Ministry of Finance issued the exemption, allowing businesses to bring in motorboats—including fishing boats, ferries, speedboats, excursion boats, and eco-friendly solar boats—without paying taxes. The policy is aimed at encouraging private investment in lake-based tourism, transport, and leisure services.
The government hopes that improving access, services, and infrastructure in the Rift Valley, highland and volcanic lakes will attract more domestic and international visitors, generate foreign exchange, and create livelihoods for communities living around the lakes.
While the one-year exemption is temporary, it signals a clear push for private sector participation. Entrepreneurs are being invited to experiment and expand services quickly, turning Ethiopia’s lakes into dynamic tourism destinations. The success of this initiative, however, will depend on investment in safety, infrastructure, and sustainable practices to ensure both economic and environmental benefits.
