Ethiopia stands on the brink of a digital revolution. Over the last five years, the country has undergone a remarkable transformation, driven by an expanding digital financial market that is reshaping the lives of millions. Thanks to the National Digital Payments Strategy 2025 (NDPS), launched in 2020, the adoption of digital payments and financial services has accelerated at an unprecedented rate. Ethiopia’s financial ecosystem is now evolving, and with it, the promise of a more inclusive, prosperous future.
The significance of this transformation cannot be overstated. Digital payments bring more than just a convenience—they represent the key to unlocking Ethiopia’s economic potential. In a country where a large percentage of the population remains unbanked, digital financial services are offering new pathways to economic empowerment. Small businesses now have the tools to expand, individuals can access formal financial services, and a new generation of entrepreneurs is stepping into the modern economy with confidence. For Ethiopia, this digital shift is not just an upgrade; it is a lifeline for growth and inclusion.
Over the years, Ethiopia’s financial inclusion rate has steadily climbed, reaching 46% in 2022 according to the World Bank’s Findex report, with over 150 million transaction accounts, including 60 million mobile money accounts. This progress marks a significant milestone, but it is also a reminder of the work that remains. Ethiopia still lags behind the global average of 76% financial inclusion. However, the National Bank of Ethiopia has set ambitious goals to close this gap, aiming for 70% adult account ownership by 2025. It’s an ambitious target, but with the right policies, partnerships, and innovations, it is within reach.
The digital financial market in Ethiopia is brimming with potential, yet it faces notable challenges. Infrastructure limitations, digital literacy gaps, regulatory hurdles, and a persistent financial inclusion gender gap are some of the barriers that need addressing. In fact, the sheer size of Ethiopia’s unbanked population presents a tremendous opportunity. With over 120 million people, many of whom lack access to traditional banking services, Ethiopia’s untapped market for digital financial solutions is vast. The rise of fintech innovations, mobile money platforms, and partnerships with telecom operators like Ethio Telecom promises to bridge these gaps, bringing digital services to the masses.
The government’s proactive role in this transformation has been crucial. Platforms like Telebirr and CBE Birr, alongside the introduction of the Electronic Transactions Proclamation, are laying the groundwork for a more secure and transparent digital economy. These initiatives are a clear signal of Ethiopia’s commitment to fostering a vibrant digital payments ecosystem. However, the success of these initiatives will hinge on stronger public-private partnerships that can support the growth of digital infrastructure and ensure these services reach even the most remote corners of the country.
At Visa, we are proud to be a part of Ethiopia’s digital journey. Our recent strategic partnerships with key players like Commercial Bank of Ethiopia, Ethio Telecom, Cooperative Bank of Oromia, Bunna Bank, and Wegagen Bank demonstrate our commitment to expanding digital payments in the country. Through initiatives like the Visa Everywhere Initiative, we are fostering innovation, providing fintech startups with the tools they need to thrive, and enabling the creation of new digital payment solutions. We aim to ensure that our platforms are not just convenient but also secure and reliable, empowering businesses and individuals alike. By expanding access to digital payments, we are helping to unlock the vast potential of Ethiopia’s financial ecosystem.
As we look to the future, the potential for Ethiopia to emerge as a leader in the regional digital economy is clear. The foundations are in place, and with continued investment in digital infrastructure, financial inclusion will expand, driving broader economic development. However, the success of this transformation requires a collective effort from all stakeholders. Government institutions, private sector players, and local and international partners must work hand in hand to build a robust digital ecosystem that truly benefits every Ethiopian.
The digital financial revolution is here, and Ethiopia is seizing every opportunity it brings. With the support of strong partnerships and the resilience of its people, the country is poised to chart a new course towards growth, inclusion, and prosperity.
Chad Pollock is General Manager & VP Visa East Africa
In a significant development for the arts and culture scene in Ethiopia, Canvas has emerged as a vibrant new cultural center, redefining the landscape for events and exhibitions in the country. Spearheaded by Cactus, a leading advertising agency known for its innovative artwork and campaigns, this initiative aims to provide a versatile space suitable for various events, moving beyond the traditional venues typically used, such as Alliance Française and the Italian Cultural Institute.
Yasser Bagersh, CEO of Cactus Communication, the largest communication agency network in Ethiopia, expressed his enthusiasm for the project. “We’ve started a new project called Canvas. Currently, cultural events are usually organized by established institutions or large hotels, leaving little room for alternative venues. Canvas addresses this gap,” he stated. The primary goal of Canvas is to serve as a cultural center that welcomes diverse organizations to utilize the space for their events.
The launch of Canvas coincides with a successful art tour held earlier this year, which featured over 35 artists participating in an exhibition titled “Arts for Good.” This collaborative event, organized with the American, Italian, and British embassies, drew significant attention and support from the community. Notably, proceeds from the artwork sold during the exhibition were earmarked for charitable causes, allowing artists to showcase their talents while contributing to social initiatives.
With its unique approach to event hosting and commitment to promoting local artists, Canvas is set to become a cornerstone of Ethiopia’s cultural landscape. It not only enhances accessibility to artistic expression but also fosters community engagement through its diverse programming. As Ethiopia continues to evolve as a cultural hub, initiatives like Canvas play a crucial role in shaping the future of arts and events in the country.
In an era where electric mobility is rapidly transforming urban landscapes, Yuma Sasaki, the Founder and CEO of Dodai, stands at the forefront of this revolution in Ethiopia. With a rich background in renewable energy and e-mobility, Yuma Sasaki has dedicated his efforts to harnessing Ethiopia’s vast renewable resources to create a sustainable transportation network. This interview digs into his inspiring journey, the vision behind Dodai, and the innovative strategies being implemented to overcome challenges in the electric mobility sector.
As we explore Yuma Sasaki’s insights, we will uncover how Dodai aims to establish a battery-swapping network that not only enhances accessibility to electric vehicles but also contributes significantly to job creation and economic growth in Ethiopia. With plans to partner with Ethiopian Investment Holdings and establish hundreds of battery swap stations, Dodai is poised to make a lasting impact on urban mobility and environmental sustainability.
Join us as we discuss the future of transportation in Ethiopia, the role of private companies in sustainable development, and the exciting possibilities that lie ahead for Dodai and its mission to lead Africa’s transition to cleaner mobility solutions. Excerpts;
Capital: Can you share your journey in the electric mobility sector and what inspired you to start Dodai?
Yuma Sasaki: My journey began in the renewable energy sector, specifically with off-grid solar projects in Ghana and Côte d’Ivoire. Later, I led e-mobility initiatives in Japan, including Uber and a 95% market share e-mobility startup, Luup. Seeing the transformative potential of both renewable energy and e-mobility, I was inspired to combine these elements in Africa, starting with Ethiopia. Ethiopia’s abundant renewable energy and untapped market potential make it the perfect place for Dodai, which means “foundation” in Japanese, to establish a strong base for e-mobility in Africa.
Capital: What is Dodai’s long-term vision for electric mobility in Ethiopia?
Yuma Sasaki: Dodai’s long-term vision is to make e-mobility accessible to everyone in Ethiopia, enabling a transition to cleaner, more affordable transportation. Our focus is to create an efficient battery-swapping network, starting in Addis Ababa that serves two-wheelers, three-wheelers, and even electric buses. By 2030, we aim to expand beyond Ethiopia, transforming urban mobility across Africa with a network of reliable, user-friendly EV infrastructure.
Capital: How did the partnership with Ethiopian Investment Holdings come about, and what are the key objectives you hope to achieve?
Yuma Sasaki: The partnership with Ethiopian Investment Holdings (EIH) is based on a shared vision to create sustainable transportation solutions while driving economic growth. Together, we aim to create 100,000 jobs and establish 400 battery swap stations in Addis Ababa and Shaggar city within 3 years. The key objectives are to provide accessible e-mobility options, reduce emissions, and foster job creation in Ethiopia’s growing green economy.
Capital: What makes this collaboration significant for the future of transportation in Ethiopia?
Yuma Sasaki: This collaboration is pivotal because it aims to generate 100,000 jobs and accelerate Ethiopia’s transition to e-mobility. The electric two-wheeler sector in Ethiopia is at least 3 years behind Kenya, so we need to start now, move quickly, and surpass existing benchmarks. A partnership between a fast-paced technology startup like Dodai and a visionary government is the only way to make this happen.
Capital: Can you elaborate on the plan to roll out 100 battery swap stations in Addis Ababa? What challenges do you anticipate?
Yuma Sasaki: I have experience implementing similar projects in other countries, so I’m confident in how to handle this rollout. The key is to ensure a sufficient density of stations to enhance convenience, rather than spreading too thin. We’ll start in high-demand areas like Bole, where delivery drivers are concentrated, to build momentum. Anticipated challenges include securing land, obtaining permits, and managing logistics, but the focused approach and government support will help us overcome them.
Capital: How will the battery swapping model enhance the accessibility of electric mobility for everyday users?
Yuma Sasaki: Battery swapping makes e-mobility more convenient and affordable by eliminating long charging times. Users can simply swap their depleted battery for a fully charged one in minutes, making EVs as practical as fuel-powered vehicles. This model is especially beneficial for gig workers and delivery drivers who need quick turnaround times.
Capital: You mentioned creating 100,000 jobs through this initiative. Can you detail how these jobs will be generated and the types of roles involved?
Yuma Sasaki: The jobs will be created across various segments, including the construction and maintenance of battery swap stations, manufacturing and assembly of e-motorbikes, logistics, and customer service roles. There will also be positions in technology development, data analytics, and training programs for new riders. By 2028, we aim to have created 100,000 jobs in Ethiopia, contributing to both economic growth and workforce development.
Capital: How do you envision the impact of this project on local communities and the economy?
Yuma Sasaki: The battery-swapping network will not only transform urban mobility but also significantly boost e-commerce. Globally, the growth of e-commerce has been tightly linked to the availability of e-motorbikes. Without e-motorbikes, the e-commerce sector cannot fully thrive. By providing reliable, cost-effective transportation, we’re supporting businesses, creating jobs, and enabling more efficient delivery services, all of which contribute to local economic growth.
Capital: You have problems with licensing issues of the electric scooters with authorities. How are you planning to tackle that?
Yuma Sasaki: Any new technology, whether it’s rideshare or e-commerce, requires time for the proper regulatory framework to be developed. This is normal during the transition period, especially for relatively new technologies like e-mobility and electric scooters. I’m confident that it’s a matter of “when” rather than “if” the regulatory issues will be resolved. As seen during the recent event, Dr. Brook from EIH also expressed commitment to addressing regulatory aspects, which further assures me that we are on the right path.
Capital: How does Dodai plan to contribute to Ethiopia’s Climate Resilient Green Economy through this project?
Yuma Sasaki: Ethiopia has surplus energy, with over 90% coming from hydropower, making it one of the cleanest sources available. Dodai’s project will leverage this clean energy to power electric vehicles, reducing emissions and enhancing sustainable urban transportation. By replacing fuel-powered bikes with electric alternatives, we are directly contributing to Ethiopia’s Climate Resilient Green Economy.
Capital: What measures are you implementing to ensure that the battery swap stations are environmentally sustainable?
Yuma Sasaki: While we’re not ready to share too many details yet, I can say that we plan to repurpose used batteries as energy storage tools for off-grid communities after 3-4 years of battery use. This approach not only extends the life of the batteries but also provides clean energy solutions for remote areas, aligning with our sustainability goals.
Capital: You mentioned using real-time usage data for optimization. Can you explain how this data will influence your operations and decision-making?
Yuma Sasaki: Real-time data will help us optimize battery availability, maintenance schedules, and station locations. By analyzing user patterns and battery performance, we can ensure that stations are always stocked with charged batteries and strategically positioned where demand is highest. This data-driven approach will enhance user satisfaction and operational efficiency.
Capital: What technological innovations are you incorporating to enhance the efficiency of your services?
Yuma Sasaki: We’re implementing IoT (Internet of Things) technology to enable real-time monitoring of battery health, usage patterns, and station performance. This will help us manage our operations more efficiently and reduce downtime. Additionally, our e-motorbikes are equipped with smart systems that provide users with instant updates on battery levels, location tracking, and maintenance alerts.
Capital: Are there plans to expand your business to include electric buses or cars in the future?
Yuma Sasaki: We definitely want to introduce electric buses as part of our expansion plans, as they align with our mission to provide efficient, mass transportation, However, we are less certain about electric cars at this point. Our focus is on providing affordable, efficient mobility solutions for the middle class, youth, and gig workers. Unless electric cars become more accessible for everyday Ethiopians, we won’t allocate resources to that segment.
Capital: What are your hopes for the future of Dodai and the electric mobility landscape in Ethiopia over the next 5 to 10 years?
Yuma Sasaki: I hope Dodai will become a symbol of Ethiopian innovation, much like Ethiopian Airlines-a company born in Ethiopia but known and trusted globally. We aim to be the leading e-mobility provider in Africa, with a strong presence in major urban centers, and to establish a robust network of battery swap stations serving two-wheelers, three-wheelers, and buses across the continent.
Capital: How do you see the role of private companies in driving sustainable development in Ethiopia?
Yuma Sasaki: Private companies have a crucial role in driving sustainable development by investing in clean technologies, creating jobs, and fostering innovation. In Ethiopia, companies like Dodai can support the government’s climate goals by offering practical, scalable solutions that reduce emissions and stimulate economic growth. Collaboration between the public and private sectors is key to achieving sustainable development
