Q&A: Navigating barriers in Ethiopia’s electric motorcycle market

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Ethiopia’s EV market is growing fast, but many challenges lie on the path of startups seeking to take electric motorcycles mainstream. Dodai is one of the fastest growing electric motorcycle startups in the country but faces major hurdles including regulatory barriers and inadequate consumer financing, says Abiero Origa, the firm’s manufacturing manager.  

• Previously, he worked as the sub-assembly production manager at Kenya-based EV startup Roam, but now he is focused on strengthening Dodai’s competitive edge in Ethiopia’s rapidly evolving electric vehicle market.

• “Competition is intensifying, with international brands like Tommi E-bike, Yadea, and San Polo already active in the Ethiopian market. However, Dodai distinguishes itself by locally assembling lithium-ion battery scooters from CKD kits, ensuring high quality and alignment with local market needs,” says Abiero.

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How would you describe the competition in Ethiopia’s electric motorcycle market?

Mr Abiero: Competition is growing. Yadea, a Chinese firm, recently entered with e-scooters that use graphite batteries. Other players like San Polo and Tommy e-bike use lead-acid batteries. Dodai stands out by using lithium-ion batteries and locally assembling CKDs, unlike most competitors who sell fully assembled imports. This approach gives us greater flexibility, quality control, and opportunities for local employment. It also allows us to tailor the product to Ethiopian conditions and customer feedback. We expect more players to enter, but our head start and differentiated model give us a strong foundation.

How do licensing and registration policies affect your operations?

Mr Abiero: It's a serious bottleneck. Many customers hesitate to invest in EVs due to unclear licensing procedures. We've had cases where businesses were ready to buy in bulk but pulled back because they feared their scooters couldn’t be registered. A clear, standardised licensing system would resolve this. We’re engaging policymakers and advocating through industry associations to fast-track this reform. The current uncertainty creates market friction and delays much-needed adoption. 

Are there any financing barriers that limit EV adoption in Ethiopia?

Mr Abiero: Absolutely. Access to microfinance is limited, and foreign firms are not allowed to offer financing solutions. We’re recommending that the government allow leasing and loan schemes backed by state guarantees. This will help individuals and logistics companies transition to EVs affordably. Many potential buyers have the intent but not the upfront capital.

Dodai has sold nearly 1,000 electric units in Ethiopia. What factors have contributed to this level of adoption despite market challenges?

Mr Abiero: It's been a tough year, but persistence and customer-centric strategies helped us get there. We've focused on offering the right products, navigating regulatory hurdles, and responding to customer feedback. Success hasn't come easily. It’s about pushing through and adapting quickly to Ethiopia’s unique market demands. We also ensured our supply chain was agile enough to respond to shifts in policy or customer needs. Additionally, we invested in local assembly to reduce costs and build trust with the local market.

Why are scooters more prevalent than traditional motorbikes in Ethiopia’s electric vehicle market?

Mr Abiero: The current dominance of scooters is due to limited options. While internal combustion motorbikes are common, electric versions haven’t attracted a lot of consumer preference in Ethiopia. As a result, consumers have had to adapt to e-scooters. We’re addressing this by introducing an electric motorbike model soon, which is already generating strong interest. Cultural factors and urban road conditions also make scooters a convenient choice in the short term. But there's a clear demand for more powerful, versatile motorbikes, especially for logistics and commercial use. We're confident the introduction of our new model will shift market dynamics significantly.

What pricing strategy are you using for the upcoming electric motorbike?

Mr Abiero: The key idea is to separate battery ownership from bike ownership. Customers will buy the motorbike at a reduced price, while Dodai retains battery ownership. This lowers upfront costs and boosts affordability. It's a widely used strategy in the EV space due to the high cost of lithium-ion batteries. It also allows us to better manage battery quality and performance throughout its lifecycle.

How will Dodai manage the risks associated with owning and maintaining the batteries?

Mr Abiero: We plan to monitor battery health using technology, likely through our dedicated technology. This will help us track how customers use the batteries and detect any abuse or issues early. Our goal is to ensure reliability and reduce long-term costs. The company takes full responsibility for battery upkeep. We'll also use remote diagnostics to monitor charging habits and temperature stress, ensuring batteries remain in good condition. Customers will also be educated on proper usage and will sign agreements on expected care.

Dodai recently covered registration costs for several users. What was the rationale behind that?

Mr Abiero: We saw number plates as critical for brand visibility and legal compliance. Without plates, customers couldn’t ride in Addis Ababa, meaning our product would stay unseen. So, we invested ETB 3.4 million (approximately $25,000) to cover the fees for about 400 customers. It was part of a broader brand awareness strategy. Seeing the bikes on the road drives word-of-mouth and builds trust with the public. We considered it a necessary short-term cost for long-term market positioning. It’s already paying off through increased visibility and customer interest.

A draft proposal is being developed by Ethiopia’s Ministry of Transport. What are Dodai’s expectations from it?

Mr Abiero: We hope the proposal includes tax exemptions on imported EV components and supportive land policies for manufacturers. We'd also like to see frameworks for charging infrastructure and battery swapping stations. These steps will significantly support local EV production and market growth. Dodai, like many players, is eager to scale up operations but needs clearer policy support. 

What gaps exist in the current EV ecosystem that the proposal should address?

Mr Abiero: One major gap is the lack of skilled technicians familiar with EV technologies. There's also no structured collaboration between educational institutions and EV companies. We need policy support to build this talent pipeline through vocational training and partnerships. It’s critical for long-term industry growth. Universities and polytechnics must include EV modules in their curricula. International collaboration could also bring in expertise and equipment to accelerate this transition.