The Ethiopian government plans to create a digital platform to facilitate the emergence of startups and make them more competitive internationally. Announced on Tuesday, March 11, the initiative is part of the government’s efforts in recent months to strengthen the national startup ecosystem.
In January 2024, the government signed an agreement with the Global Innovation Initiative Group (GIIG), a technology entity based in Port Louis, Mauritius. More recently, in January 2025, the government signed a €4.5 million (USD 4.6 million) funding agreement to foster the emergence of startups and accelerate the adoption of digital services.
This ambition of the authorities is aligned with the national digital transformation strategy “Digital Ethiopia 2025.” Through this roadmap, the Ethiopian government intends to harness digital opportunities across all sectors to transform the country into a knowledge- and innovation-driven economy. According to the GSMA, digital technology could contribute up to 1.3 trillion Ethiopian birr (approximately USD 10.1 billion) to the national GDP by 2028.
However, the GSMA emphasises that the government must improve access to capital and the business environment. Despite notable strengths such as a large population, a large market, and a skilled workforce, challenges remain. A 2023 study indicates that 25% of agri-tech and health-tech startups rate the business environment as very favourable, while nearly 30% rate it as average and 20% describe it as unfavourable. In a global comparison, Addis Ababa’s ecosystem ranks 328th out of 1,000 cities, according to StartupBlink’s “Startup Ecosystem Report 2024.”
The development of the startup ecosystem will also depend on internet access in the country. This technology is essential for both businesses and the populations targeted by digital services. In 2023, the GSMA estimated that 100 million people in Ethiopia would lack access to mobile internet, out of a total population estimated at 128.7 million by the World Bank.
Source: Extensia
