In Ethiopia’s capital, Addis Ababa, urban commuters are swapping their petrol-powered two-wheelers for high-tech, battery-powered bikes.
For “e-riders,” long waits at fuel stations are becoming a thing of the past as they embrace an electric future, driven by ease and cost-efficiency.
This shift is fueled by an innovative battery-swapping model, which provides a practical solution to the nation’s inconsistent power infrastructure and high vehicle costs.
Electric motorbikes, like those from local startups and Japan’s Dodai, are emerging as a promising alternative to electric cars.
Ethiopian Investment Holdings (EIH), the government’s investment agency, and Dodai are leading the charge, planning to launch 100 battery swap stations in the coming year, with an ambitious goal of 300 within three years.
“These battery swapping stations will allow riders to quickly exchange depleted batteries for fully charged ones, reducing downtime and enhancing the convenience of electric mobility,” said Dodai CEO Yuma Sasaki in an interview with Connecting Africa.
“This model is poised to fast-track the adoption of electric vehicles across Ethiopia by making charging infrastructure more accessible and user-friendly.”
In September, Dodai secured US$7 million in funding to expand the electric vehicle market in the country.
While the government’s ban on internal combustion engine (ICE) vehicle imports was intended to promote electric car use, the steep price tag of electric cars—often over US$25,000—has made them unaffordable for many Ethiopians.
In contrast, electric motorbikes, priced just above US$1,100, are providing a more affordable path to sustainable transportation.
According to Statista, electric motorbikes now account for 3.8% of the total motorcycle market in Ethiopia.
Starting January 2024, Ethiopia became the first country to ban the import of non-electric private vehicles, setting a bold precedent.
This move is aimed at cutting the nation’s dependence on fuel imports, which topped US$6.2 billion in 2023, while promoting environmental sustainability.
Initially, the government set a target to import 148,000 electric cars and 48,555 electric buses by 2030. However, rapid adoption allowed Ethiopia to reach these targets in just two years, prompting a revision of the goal to 439,000 electric vehicles by 2030.
Ethiopia now boasts around 100,000 electric vehicles, positioning it as one of Africa’s largest markets for battery-powered vehicles.
To accelerate this transition, the Ethiopian government is offering incentives such as duty-free EV parts for local assembly, a 5% tax on semi-assembled EVs, and a 15% tax on fully assembled ones—far lower than the taxes on gasoline-powered vehicles, making electric mobility more attractive for both consumers and businesses.
In response to these shifts, the private sector is stepping up to meet demand. Companies like Belayneh Kindie Metal Engineering Complex are locally assembling electric minibuses, using components imported from China.
Since mid-2023, the company has assembled 216 electric minibuses, with half already sold to transport service providers and government agencies.
Additionally, Ethiopia is planning to roll out 2,226 charging stations nationwide, with 1,176 in Addis Ababa and 1,050 in regional cities.
There are also plans for a local EV battery manufacturing plant to reduce dependence on imports.
Seth Onyango, bird story agency
