Dodai CEO: "We will not play catch-up”

From the newsletter

Just a day after partnering with Ethiopian Investment Holdings to build a network of 300 battery-swapping stations, Yuma, the CEO of Dodai, expressed confidence in their anticipated growth on his LinkedIn account. He shared that they are not simply playing catch-up in the market; they plan to surpass the big players within 3 years and become a driving force for sustainable transport across Africa.

• The CEO acknowledges the head start of countries like Kenya, Ghana, and Rwanda but is determined to accelerate Ethiopia's e-mobility transition.

• But inspired by Ethiopian Airlines' pan-African success, Dodai aims to make e-mobility accessible to everyone in Africa.

More details

• For a country that has long been a closed market to investors, some might say Yuma is being overly optimistic.  Being a first mover presents both an opportunity and a risk, depending on your perspective. 

• However, Ethiopia, with a population of over 130 million, is undeniably one of Africa's fastest-growing economies. 

• Its recent ban on importing fossil fuel vehicles and plans to phase out fossil-powered motorcycles by 2026 demonstrate a bold commitment to sustainable transport. 

• Dodai has recognized this opportunity and aims to capitalize on it, starting by electrifying Addis Ababa, with the long-term goal of expanding across the continent.

• Currently, they have sold over 400 electric motorcycles, but this is just a drop in the ocean for such a populous country. 

• To accelerate their expansion, they have targeted companies with delivery needs, such as the Ethiopian Postal Service, BeU (a leader in food delivery), and Rungoo, a liquor distributor. 

• Dodai's growth will not only focus on motorcycle fleets but also on job creation and improving air quality. Their partnership with EIH, for example, aims to create 100,000 jobs in 3 years.

Our take

• Building a company takes time, and action must follow words to achieve success. But one thing, the Ethiopian market presents a promising demand for electric motorcycles, especially with the ban on fossil fuel-powered ones. 

• However, the growth of this sector faces a classic chicken-and-egg problem. Electric motorcycle players like Dodai need to find the balance between selling electric motorcycles and developing the necessary charging infrastructure and battery swapping stations.