Dodai signs MoU partnership with Ethiopian Investment Holdings

From the newsletter

The two partners joined forces yesterday in a strategic partnership to accelerate the growth of sustainable transportation in Ethiopia.

• As part of EIH's green investment strategy, the partnership will involve building 300 battery swap stations across Ethiopia within three years, with 100 stations planned for the first 12 months.

• The initiative aims to create 100,000 jobs and boost sustainable urban transport.

More details

• Dodai announced in September that it had reached  400 sales of electric motorcycles. The company has secured deals for its electric motorycles with the Ethiopian postal service, BeU (a leader in food delivery), and Rungooo, a liquor distributor.  

• So far it has raised over $41 million in funding in 2024 to support its expansion and operations.

• Ethiopia recently banned importing fossil-fueled motorcycles and plans to replace existing ones by 2026.

• This ban provides Dodai with a guaranteed market opportunity, provided it can design products that meet consumer affordability

Our take

• Ethiopia's market is vast and expanding with increasing urbanization expected to drive growth for convenient urban transportation. As electric motorcycles are the only permitted option, their market share is guaranteed to expand despite affordability constraints.