Ethiopian Investment Holdings (EIH), the state-owned sovereign wealth fund overseeing 40 enterprises, has ended its partnership with Japan’s Dodai Group Inc. to deploy battery-swapping stations for electric motorcycles. The decision, announced on March 22, 2025, marks a strategic pivot toward a broader venture capital (VC) fund to support Ethiopia’s sustainable transport sector.
The terminated Memorandum of Understanding (MoU), signed on October 21, 2024, aimed to establish 100 battery-swapping stations in Addis Ababa within a year and expand to 300 stations nationwide over three years. The initiative sought to promote clean energy transport and reduce reliance on fossil fuels.
EIH cited the need for a dedicated VC fund to manage such investments, emphasizing better risk mitigation, targeted returns, and operational support for startups. “Pursuing the battery-swapping initiative directly through EIH is not feasible at this stage,” the organization stated. The fund, currently under development, will prioritize structured investments in early-stage ventures rather than single partnerships.
Dodai Group, meanwhile, attributed the termination to a shift toward “alternative strategic opportunities” in global markets. The company plans to leverage its technology and resources in evolving sustainable mobility ecosystems.
The partnership’s collapse follows EIH’s broader reforms to modernize state-owned enterprises (SOEs) and align with global competitiveness. At least five SOEs under EIH are slated to list shares on Ethiopia’s nascent securities exchange
While the battery-swapping project will not proceed, EIH acknowledged Dodai’s contributions to sustainable transport innovation. Dodai founder and CEO Yuma Sasaki told Capital that the termination was mutual but declined to elaborate further.
Analysts note that the decision reflects Ethiopia’s cautious approach to foreign-led infrastructure projects. Critics argue that reliance on imported batteries and foreign investors could undermine local sustainability goals. Others view the VC fund as a pragmatic step to diversify investments and attract multiple players.
