Start-Ups

Ethiopia’s Dodai Raises $4 Million Series A As Government Moves to Ban Fuel Vehicles

The company, which has 7,200 electric vehicles (EVs) among the 1.2 million cars on Ethiopian roads, manufactures and distributes electric motorcycles.

Ethiopia's Dodai Raises $4 Million Series A As Government Moves to Ban Fuel Vehicles
Dodai Team [PHOTO CREDIT: X/@Ethiopost]

Amid Ethiopia’s official push to phase out fuel cars, Dodai, a Japanese electric vehicle and motorcycle company established in the nation, has reached a crucial milestone with a $4 million Series A fundraising round. The company, which has 7,200 electric vehicles (EVs) among the 1.2 million cars on Ethiopian roads, manufactures and distributes electric motorcycles.

Dodai, led by Yuma Sasaki, has now raised $6.2 million in funding since its establishment in 2023, a significant milestone in Ethiopia’s startup ecosystem. Their electric motorcycles are well-known for their range, which can travel up to 150 kilometres on a single charge and use lithium batteries that can last up to eight years. Additionally, Dodai provides short-term scooter rentals to its clients.

Musashi Seimitsu, a well-known Japanese automotive component supplier, expressed interest in the newest investment round, recognising the strategic opportunity to address regional transportation concerns and strengthen its foothold in the developing e-mobility sector. Dodai and Musashi are collaborating on projects such as developing EV scooters using Musashi’s e-Axle technology, introducing three-wheeled vehicle models, and launching data-sharing efforts.

The government’s decision to put a stop to the import of petrol and diesel-powered vehicles in favour of electric vehicles (EVs) was recently announced by Alemu Sime, Ethiopia’s Minister of Transport and Logistics, and this important development is in line with Ethiopia’s larger vision for sustainable transportation. The statement underscores Ethiopia’s dedication to “Green Transport” initiatives and was released after the conclusion of the country’s Logistics Master Plan.

According to the new rules, owners of fossil fuel-powered vehicles must submit their cars to stringent emissions tests; if they don’t meet the requirements, their licences will be revoked. The government intends to provide infrastructure for charging electric vehicles starting in 2022 and to offer incentives to buy them, such as surtax, excise, and value-added tax deductions.

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