Experts have raised concerns that existing laws and regulations in Ethiopia are obstructing the country’s pursuit of economic growth. Among the regulations cited are those governing electric motorcycle riders and owners. In a bold move, the Ethiopian government has become the first country to ban the import of gas-powered vehicles, aiming to promote electric alternatives.Despite this initiative, investors interested in entering the electric vehicle sector face significant challenges due to recent regulatory changes.
Dodai Manufacturing Plc, which recently entered the Ethiopian market, has reported selling over 600 electric motorcycles since their launch. However, Yuma Sasaki, Founder and CEO of Dodai, expressed frustration over the regulatory landscape. We are still discussing amendments to the regulations concerning motorcycle and electric motorcycle transport services in Addis Ababa, Sasaki stated. He highlighted the complexities involved in obtaining necessary permits, including number plates for electric motorbikes, which are still a new concept in the city.Sasaki emphasized the importance of understanding the benefits of electric motorcycles for both delivery drivers and commuters.
We are aligning with Ethiopian Investment Holdings and the Addis Ababa Transport Bureau to facilitate these processes, he said, expressing optimism about eventually enabling broader access to driver’s licenses and number plates.The CEO also pointed out that while regulations aimed at expanding the electric vehicle market exist, they are not being effectively enforced. We share a common
understanding of the benefits of EV solutions with various government entities, but aligning on these issues can be challenging due to their novelty, he noted.In response to these challenges, Dodai Manufacturing has signed a memorandum of understanding with Ethiopian Investment Holdings to support the production of electric motorcycles and battery swapping stations in Ethiopia. The company plans to establish 100 battery swapping stations where users can exchange depleted batteries for charged ones.Dodai aims to produce 5,000 electric motorcycles and set up 100 battery swapping stations within the next year.
The construction sites for these stations will be provided by Ethiopian Investment Holdings, with further details on their partnership expected to be announced soon.With an investment of $7 million in a factory located in Addis Ababa, Dodai is committed to contributing to Ethiopia’s transition toward sustainable transportation solutions. As discussions continue regarding regulatory reforms, both Dodai and government officials recognize the need for collaboration to foster a thriving electric vehicle market in Ethiopia.
