Dodai secures $7mn to accelerate Ethiopia’s EV market growth

Dodai, an Ethiopian electric vehicle (EV) company, has recently secured $7 million in funding to revolutionize the country's electric vehicle sector. In an exclusive interview with CNBC Africa, Yuma Sasaki, the Founder of Dodai, discussed the immediate plans for deploying the capital and how it will drive the company's growth in the burgeoning EV market. Sasaki outlined the key areas where the funding will be utilized. Firstly, a significant portion will be allocated to enhancing production capacity by expanding the assembly factory in Addis Ababa. This expansion aims to meet the increasing demand for electric vehicles in Ethiopia's urban transportation sector. Secondly, the funding will be directed towards procuring raw materials for the production of tens of thousands of e-motorbikes. Thirdly, Dodai is focused on building a team that is dedicated to the mission of democratizing e-mobility in Africa. Highlighting the promising prospects in the Ethiopian market, Sasaki expressed confidence in Dodai's potential to offer substantial returns on investment compared to other African markets like Kenya and Nigeria. With Ethiopia being the second most populous country in Africa and exhibiting minimal competition in the e-mobility sector, Sasaki sees it as a blue ocean opportunity. Driven by the support from the Ethiopian government, which provides incentives such as corporate tax exemptions and import duty waivers for e-mobility products, Dodai anticipates a swift transition towards electric vehicles in the country. The recent ban on fuel-powered vehicle imports by the government further propels the shift towards sustainable transport solutions. When questioned about the timeline for realizing financial returns from the expansion, Sasaki shared a strategic outlook. While profitability could be achieved within three years if the focus remains solely on Ethiopia and electric motorbikes, Dodai's vision extends beyond borders. The company plans to reinvest profits to introduce electric three-wheelers and buses while exploring new markets in Cote d'Ivoire and Senegal. Addressing the challenges faced in navigating Ethiopia's regulatory landscape, Sasaki drew parallels with Japan, emphasizing the need for a tailored approach to suit the local market dynamics. Educating customers about the benefits of e-mobility and earning their trust have been central to Dodai's strategies, requiring patience, experimentation, and a deep understanding of the Ethiopian context. With a global shift towards sustainability, Dodai aligns seamlessly with Ethiopia's renewable energy initiatives, leveraging the country's abundant hydropower resources and cost-effective electricity prices. Sasaki envisions Dodai's expansion beyond Ethiopia, aiming to drive the green transition across multiple African countries with a diverse range of electric vehicles. Explaining the rationale behind choosing Ethiopia as an investment destination, Sasaki highlighted the country's significant market size, youthful population, and relatively untapped potential due to limited foreign investment, setting the stage for substantial returns. In conclusion, Dodai's $7 million investment marks a significant milestone in propelling Ethiopia towards a greener and more sustainable future through the rapid adoption of electric vehicles. With a strategic roadmap and unwavering commitment to innovation, Dodai is poised to lead the electric vehicle revolution in Africa.