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Green investors have quietly grown risk appetites

After years of doubt about Ethiopia, opportunities are rewiring investment decisions

June 26, 2026

Welcome to Green Rising – Our general approach is to look at Africa-wide trends. 

But there is one country we keep covering in its own terms. Not because it is an outlier, rather it seems to (again) have become a forerider – despite its many flaws.

Ethiopia recently saw civil unrest that killed thousands. Its poverty remains staggering. How to square that with also being an undoubted leader in renewable energy, electric mobility and other sustainable industries? 

Investors are taking on significant risks in Ethiopia, much more than for example in its southern neighbour Kenya, the African “goldilocks”. What’s seemingly shifted is the risk appetite of a growing number of impact and infrastructure investors, not least given the size of capital deployments in Ethiopia.

“Big is better” appears to be the development model for East Africa’s most populous country, Ethiopia, when it comes to investment. The government has approved a $14.1 billion investment by granting a licence to the Chinese renewable energy manufacturer Ming Yang Smart Energy Group for a clean energy and industrial development project in the country.

  • The deal, initially signed at the fourth Invest in Ethiopia Forum at $10 billion, has since expanded by another $4.1 billion, making it the largest renewable energy and industrial investments on the continent.

  • This scale of investment only happens where investors trust government policy and commitment. Ethiopia, Egypt, Morocco and South Africa have proven this, with each country attracting large-scale investments across the energy value chain.

  • Our take: There is a need to focus on stimulating local manufacturing that can support large industries across the value chain… Read more (2 min)

Ethiopian electric vehicle startup Dodai has raised $13 million funding in its Series A round, a record for the country’s EV sector. The funding combines $8 million in equity and $5 million in debt from a group of investors from around the world. Dodai is Ethiopia’s leading electric two-wheeler company and was founded in 2022 by Japanese investor Yuma Sasaki.

  • Dodai assembles electric scooters and motorcycles locally and has deployed more than 2,000 units in Addis Ababa. It aims to use the new funding to grow to 3,000 battery-swapping users and roll out 30 stations in the next one year.

  • Ethiopia has strong restrictions on fuel vehicles, including motorcycles. It also has among the lowest electricity prices in the world. These factors have helped EV sales, and investors are taking note.

  • Our take: EVs will enable Ethiopia to leverage its energy surplus to achieve energy independence from imported fuels… Read more (2 min)

For decades, Ethiopia’s power sector has been a closed market dominated by government investment and state utilities. However, its newly launched National Energy Compact opens a space for private investors to finance about one-third ($3.1 billion) of energy investments over the next five years as the country works to connect 50 million people.

  • Ethiopia’s National Energy Compact is part of the World Bank-led Mission 300 initiative and seeks a $1.2 billion funding pledge from investors.

  • Ethiopia is seeking investment in transmission, a sector reserved for the government in many African countries. Last month, it signed the country’s first private transmission deal, worth $400 million.

  • Our take: Private investors can target regional electricity exports, which form part of Ethiopia’s Energy Compact strategy… Read more (2 min)

Number of the week

… is the interest rate offered by Zembo on its first corporate bond. The electric motorcycle maker is raising $264,000 to finance 200 vehicles. A third of EV capital raised currently is in the form of debt.

Network corner

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👉 Electric motorcycle firm Spiro names Anant Badjatya as its Group CEO

Top green jobs from…

EVENTS UPDATE 

📆 Join the Climate Change and Net-Zero Summit in Ethiopia (July 1) 

📆 Register for the NOG Energy Conference & Exhibition in Nigeria (July 5)

📆 Attend the Climate Forward Summit in Ghana (July 9)

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