British International Investment has committed US$5 million in debt financing to Ethiopian electric mobility company Dodai as part of a broader funding round aimed at scaling up battery-swapping infrastructure and expanding electric transport access in urban Africa.
The investment, made by British International Investment, forms part of a US$13 million Series A round for Dodai, a startup that assembles electric motorbikes and operates battery-swapping stations in Addis Ababa.
Dodai, which was founded three years ago, has already deployed more than 2,000 electric motorbikes and employs around 100 workers, most of them Ethiopian nationals.
The company’s model allows riders to exchange depleted batteries for fully charged ones at designated stations, reducing downtime and avoiding reliance on fixed charging infrastructure — a key challenge in cities with limited and uneven electricity access.
Rapid expansion plans
The firm plans to significantly scale operations over the next three years, targeting 30,000 users and 1,000 battery-swapping stations across multiple African cities.
In the short term, Dodai aims to establish 30 stations and serve 3,000 users in Addis Ababa within the next 12 months.
Beyond Ethiopia, the company is preparing to expand into other major African urban centres, including Abidjan, Kinshasa, Accra, and Dar es Salaam.
The expansion reflects growing investor interest in electric mobility solutions across Africa, particularly in high-density cities where motorcycle taxis and delivery services play a major role in urban transport systems.
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Climate and development push
The investment aligns with broader climate finance goals pursued by UK development institutions and international partners, as governments and financiers seek to support lower-emission transport systems in rapidly urbanising economies.
British International Investment said the financing is intended to help build a commercially viable market for electric motorbikes while also supporting job creation and improved mobility for low-income workers.
The transaction was facilitated with support from the Africa Resilience Investment Accelerator (ARIA), a platform backed by European and development finance institutions designed to de-risk investments in frontier markets.
Ethiopia’s broader shift
The deal comes as Ethiopia increasingly promotes electric mobility as part of its national climate and energy transition strategy.
Authorities have encouraged the adoption of electric vehicles in urban transport, particularly for motorcycles used in delivery services and informal public transport, which dominate short-distance mobility in major cities.
Electric mobility is seen as a way to reduce fuel import costs, cut urban air pollution and ease pressure on foreign exchange reserves.
Investment strategy
The backing also reflects a broader shift in development finance, with institutions like BII prioritising climate-related projects and frontier markets.
The investor has committed to directing a significant share of its portfolio toward climate-focused investments and underserved markets, particularly in Africa and South Asia.
Analysts say such investments are increasingly targeting scalable business models that combine commercial viability with social and environmental impact.
Outlook
While the electric mobility sector in Africa remains at an early stage, it is gaining traction as battery technology improves and financing becomes more accessible.
Challenges remain, including infrastructure gaps, high upfront costs and the need for reliable electricity supply to support large-scale battery charging networks.
However, supporters of the model argue that battery swapping offers a practical solution in cities where traditional charging infrastructure is limited.
If successful, Dodai’s expansion could position it among the early leaders in Africa’s emerging electric mobility market, while contributing to broader efforts to decarbonise urban transport systems.
