For Netey Tesfaye, an electric bike offered a chance at a decent living, delivering goods across the bustling city. He used to earn between 350 Br and 450 Br a day, until September when his journey was abruptly cut short. Stopped by traffic police around Piassa, he was punished for not having a license plate, slapped with a hefty 5,000 Br fine, and his e-bike was impounded for a week.

Netey recounted witnessing over 100 e-bikes detained at the police station. "When I bought my e-bike, they didn’t start giving license plates. I was using the company’s plate from where I bought them," he said, revealing the confusion regarding the licensing process.

The crackdown stemmed from a directive issued in April 2024 that effectively banned e-bike operation, fuelling anxieties among riders and e-bike companies.

Samuel Tariku, the head of business development at Dodai, a prominent e-bike assembler, expresses the widespread unease among his customers. The company had written several letters to both the Addis Abeba Transport Bureau (AATB) and the Addis Abeba Traffic Management Authority, seeking clarification and a solution. Their appeals have been met with silence.

Dodai assembles two models priced between 175,000 Br and 210,000 Br, with lithium batteries that the company advertises can last up to eight years and cover distances of 80 to 150 km on a single charge. Since starting operations in August, Dodai claimed to have sold over 600 e-bikes, with a large portion going to government agencies and individuals speculating future price hikes.

The enforcement of the directive, despite being released eight months ago in April, only suddenly began two months ago, catching riders off-guard. "We would be happy to have a license plate and follow the law but we are not given the time," Netey lamented.

Tsega Hailu's entrepreneurial dreams were also foiled under the weight of the unexpected directive. He envisioned building a small delivery business, even taking out a loan to purchase an e-bike in April. His hopes were dashed when authorities mandated the formation of an association with at least 250 members as a requirement for licensing. “I now park my e-bike in my backyard,” he said.

Samuel stated that Dodai has been supporting riders like Tsega in their quest for licensing, helping them organize and meet the stringent requirements. “Achieving the required quorum of 250 members for the association remains a serious hurdle,” he stated.

The directive which governs motorcycle and e-bike transport services in Addis Abeba had only recently commenced enforcement. Until the directive, e-bikes were roaming the streets without government-issued license plates.

The directive also mandates that all motorcycles must transition to electric within two years, effectively phasing out gasoline-powered bikes. Personal use e-bikes are also subject to regulations, particularly concerning GPS installation. The directive permits government institutions, NGOs, banks, insurance companies, starred hotels, charities, laboratories, pharmaceutical companies, and private hospitals to obtain licenses without requiring association membership. The AATB retains the authority to grant licenses to other organizations based on their requests.

Yabibal Addis, the head of AATB, defended the directive, citing security concerns and the need to curb overcrowding in the city. He argued that the rule limiting e-bikes to associations of 250 members is necessary to address these problems. “We have no centralized system to control them,” he said. He says that the city’s focus is on mass transport to serve the growing population.

He argues that the Bureau has stopped issuing private license plates for e-bikes to prevent a surge in private use. His office has already authorized 43 companies that meet the association requirements outlined in the law.

AATB is working on revisions of the directive to address the gaps in the existing directive. He disclosed that an impending draft directive, expected this year, will incorporate feedback from stakeholders and potentially lower the required association membership from 250, to ease the licensing process for individuals and smaller businesses. He says the revised directive will broaden the scope to include more entities seeking e-bike licenses.

Mohammed Hussein, head of transport planning & strategic study at AATB, admitted that the recently enacted directive lacks sufficient input from stakeholders. He still defended the restrictions, primarily citing public safety. He says that most motorbikes exceed speeds of 80km per hour.