Dodai, an Ethiopian-based electric vehicle (EV) startup with a focus on electric motorcycles, is making significant strides in the EV market. With a total of 7,200 EVs among Ethiopia's 1.2 million cars, Dodai is contributing to the country's green transportation goals. The company, founded by Yuma Sasaki, has successfully raised $6.2 million since its inception in 2023, marking the latest funding round as one of the largest for an Ethiopian startup.

The company's electric motorcycles boast an impressive range of up to 150 km on a single charge, with lithium batteries that can last up to eight years. Additionally, Dodai offers customers the option to rent scooters for short-term use, further enhancing mobility solutions in the region.

Musashi Seimitsu, a Japanese automotive parts manufacturer, has partnered with Dodai, viewing the investment as a strategic opportunity to address mobility challenges in Africa and to expand its e-mobility business. The partnership aims to develop new electric vehicle solutions, including EV scooters powered by Musashi's e-Axle technology, and to introduce three-wheeled electric vehicles.

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In a move to promote sustainable transportation, Ethiopia's Minister of Transport and Logistics, Alemu Sime, announced in February 2024 that the government would only permit the importation of electric vehicles, effectively banning petrol and diesel-powered cars. This policy is part of Ethiopia's Logistics Master Plan, which includes the adoption of "Green Transport" initiatives across the country. Additionally, the government plans to enforce strict smoke tests for fossil fuel-powered vehicles, with failures resulting in licence revocations.

To support the transition to electric vehicles, Ethiopia plans to establish electric charging stations nationwide and has already exempted electric cars from value-added tax (VAT), excise tax, and surtaxes since 2022. This comprehensive approach underscores Ethiopia's commitment to reducing carbon emissions and promoting environmentally friendly transportation solutions.