Today’s guest, Hilly Hirt, is the Chief Executive Officer of the Israeli Forum for Impact Economy. She is also leading the current Israeli expert delegation to Ethiopia, which includes Asi Amar, Orit Solomonov, and Michael Peled.
With over 15 years of experience in international development, Hilly has worked for the Indian government on commercial issues and managed a bilateral investment fund within Israel’s Innovation Authority, focusing on industrial research, development, and technology innovation. Her expertise also includes international partnerships, impact investing and philanthropy, giving her a holistic perspective on fostering inclusive growth through innovation.
Hilly’s work focuses on utilizing technology and innovation to create inclusive economic growth, social mobility, and equal access to capital, services, and products in various countries worldwide.
During her time in Addis Ababa, Ethiopia, Hilly had a brief stay with The Ethiopian Herald newspaper. She shared her views, concerns, and perceptions, as well as the Israeli government’s stance, on creating a conducive atmosphere for innovators and Micro and Small Scale Enterprises to thrive and contribute to the growing Ethiopian economy. By reading the article, you can learn more about the best practices from Israel in this field. Enjoy the read!
What is new in the second edition of Ethiopia and Israel Innovation Week, which took place from November 4 to 7?
I first visited Ethiopia in 2019, and it is safe to say that things have progressed significantly. The ecosystem has evolved, with a growing number of players, connections between them, and engaging dialogues that are innovative, smart, and enthusiastic.
Everyone seems focused on innovation, technology, startups, investments, and bilateral relations. They are working together to lower barriers and create opportunities within the ecosystem. Over the past four or five years, a vibrant ecosystem has emerged, and as someone who has been fortunate to visit over the years, I can see the positive growth.
What is the primary objective of Innovation Week?
Israel and Ethiopia have very complementary skill sets and assets as countries. The idea is to leverage Israeli knowledge and lessons, both good and bad, and apply them in the Ethiopian context to push or elevate the innovation ecosystem. This will contribute to what the government, development partners, and partners on the ground are seeking. Additionally, it will create a bilateral relationship so that Israel, which can learn a lot from Ethiopia, can strengthen economic relations and grow together to create a win-win situation.
In sectors such as agriculture, Israelis have developed cutting-edge technology over the years. Agriculture is a core sector in Ethiopia, so by working together, there can be technology transfer, capacity building, and learning about future markets in Ethiopia. This market can benefit from cutting-edge technology relevant to a large number of farmers.
I think start-ups face many challenges simply because they are coming up as new business entity. So, what do you observe here in Ethiopia?
That is a great question. Firstly, it is important to note that it took less than a week to encounter brilliant people here in Ethiopia. The human capital is fantastic. Also, all the ideas and diverse technologies that entrepreneurs speak about, and the different entities we have met with.
One of the main challenges, as it has been spoken about, is access to capital. Start-ups need capital to grow, but they also need a tight-knit, functional, connected ecosystem. You can already see this happening here. Entrepreneurs, academia, the industry, the private sector, and investors all need to communicate in order to learn from each other. This way, start-ups know what investors are looking for, and investors know what the industry is interested in. This connectivity and knowledge are crucial. It’s also important to look at what’s happening globally.
Ethiopia is a fantastic market to start with, but innovators here need to think globally, whether in East Africa, all of Africa, or the world. Exposure, exchange, knowing how to scale, and understanding trends – these are all crucial for creating access.
The Israeli delegation team held discussions with top government officials, including the Ministry of Innovation and Technology and the Governor of the National Bank, among others. What were the points of discussion and agreements reached?
Both Ministry of Innovation and Technology (MiNT) and Ministry of Labor and Social Affairs (MOLS) have been actively working to elevate and support the growing ecosystem here for about three years now. Meeting with all the entities you mentioned was also an opportunity for us to learn more about what is happening here.
To work together effectively, it is crucial for us to understand the local landscape and for representatives from both sides to engage in mutual learning. This exchange of information is essential.
During our discussions, we covered topics such as new developments, emerging entities, available funding, shared visions, roadmaps, and potential collaborations. We explored frameworks for bilateral cooperation between Israel and Ethiopia, identifying best practices and areas where each side can contribute to one another.
We also discussed lessons learned from Israel’s successes and failures in innovation, which Ethiopia can leverage to overcome challenges and progress. The ecosystem supporting innovation involves both private sector actors and governments. We aimed to understand how Israel’s experience can complement Ethiopia’s efforts at the governmental level.
Our delegation members possess extensive experience in Israeli government initiatives over the past 30 years to enhance innovation. We shared insights on governmental strategies and learned about Ethiopia’s needs and initiatives. We hope to continue this collaboration at both the startup and governmental levels in the future.
Each member of our diverse delegation brings unique capabilities and experiences, from working with startups and entrepreneurs to understanding financial mechanisms and fostering innovation ecosystems. We commend the Ethiopian government’s progressive approach to brainstorming and collaboration, which is essential for driving innovation.
Regarding our delegation, we believe in working collaboratively from top to bottom, aligning incentives, and bridging the public and private sectors to create a comprehensive innovation ecosystem. We appreciate the platform for open discussion and idea-sharing that has been created here.
As for my background, I have worked for the Indian government and the Israel Innovation Authority, focusing on research and development as well as innovation funding. I have experience in international partnerships and philanthropy, which have shaped my perspective on fostering inclusive growth through innovation.
Overall, blending the private sector, government, foreign partnerships, and philanthropy is essential for creating a successful innovation ecosystem.
What best practices does Israel have that they can share with Ethiopia regarding the handling of science and innovation? What kind of support is Israel ready to provide to help Ethiopian startups flourish?
I believe that the most valuable thing we can offer is our knowledge and experience, tailored to the context of Ethiopia and Africa. Recently, we had a meeting where we discussed innovation across the African continent. The best way to cooperate is by engaging with the government, private sector, organizations like the Innovation Authority, academia, and others to share our expertise.
From the meetings we have had and will continue to have, it is clear that the Ethiopian ecosystem is eager to learn from Israel. We are open to sharing our knowledge and experiences with our Ethiopian friends. I foresee more delegations between Israel and Ethiopia, either in person or through online exchanges, to facilitate this knowledge transfer.
It is important to recognize that Ethiopia is in a strong position, evident from its growth and influence in East Africa. Israel sees the opportunity to engage and be a part of this growth. I encourage Ethiopians at all levels, especially those involved in innovation, to reach out to us. Our embassy is dedicated to connecting them with relevant parties in Israel to address their current challenges and pave the way for future success.
By spreading the word about this collaboration, we can benefit both Ethiopia and Israel by gaining a better understanding of Ethiopia’s current initiatives and future needs
Do you have any chance to visit Ethiopian SMEs or innovators?
Yes, I had the chance to meet innovators.
What did the delegation team observe?
Yeah, they are hungry for success, as they should be. And they are open-minded and willing to learn. I also think they are a very strong force for change in Ethiopia. They are not sitting down and waiting for things to happen, but when we tell them an ecosystem needs to be connected, they are like, “Okay, how can we contribute to making that connectivity happen?”
And when we tell them investors look for certain things, they said Okay. One of them even said, “Can I send you my pitch and get feedback on it?” So, they have what we call in Israel, chutzpah. It is exactly what they need. They have the gumption to make sure they are not just sitting down and waiting for things to happen.
They are going to make it happen. That’s what makes a strong entrepreneur. You can definitely see that. By the way, you can see that in the different players. When we were visiting one of the universities here, the name of the university is Addis Ababa University. They were also really ambitious.
They want to support their startups, create tech transfer, and commercialize technologies. They understand that it is an excellent engine. They want to build innovation centers. It is at all levels.
It is not just the entrepreneurs who are hungry, the whole ecosystem is there. Another one is, if you look at these energetic young citizens, what do you plan in the future to help or assist those individuals? Firstly, on a personal level, not only me but also the other delegates, we’ve provided our emails to everyone who asked in order to connect if needed, to keep in touch, and to send us information or follow up.
When there is an exchange of delegations, people become accessible to you. Even if it is not my core expertise, I can transfer it to a friend. For example, VCs can provide help with pitch decks. Creating that international network is an asset this delegation can provide. The bilateral framework we create here with all levels of partners will be utilized and contribute to those entrepreneurs. That’s my message.
What sort of lesson can Ethiopia learn from Israel in terms of expanding innovation?
I think the key is creating smart access to capital that truly allows for growth. Ensuring that all entities in the ecosystem are connected, working together, and open to conversation is crucial. How can we tap into global markets and create new clusters of innovation? We’ve been discussing new ideas here, whether it is in tech, mining, aviation, or sports. While tourism and agriculture are core sectors, there is much room for branching out. Israel excels in creating new clusters of innovations and sectors that could be highly relevant to Ethiopia.
Innovation in Israel is supported in all life cycles of companies, SMEs and local growth companies. Innovation isn’t only for startup.
What gaps do you see in Ethiopia in terms of encouraging innovators and growth?
This is a great question. I believe that every community and country should look inward to identify their own gaps, much like Israel did. Every country’s approach is unique, just as Israel’s was different from America’s or India’s. We identified our own gaps and provided unique solutions.
It is important for Ethiopia to do the same, and we are willing to cooperate once these gaps are identified. It is not fair for me to come for just five days and point out gaps without fully understanding the ecosystem. In Israel, we focus on opportunities rather than gaps, as it brings people to the table and fosters collaboration.
Viewing challenges as opportunities, such as increasing access to finance, can lead to more positive outcomes. I believe that with time, we can better understand any gaps and work together to address them. Let us revisit this conversation in six months, and I will share insights on the gaps we identify and how we can address them. I want thank the development orgs such as UNDP and UNECA and the National Bank of Ethiopia and the Embassy, MiNT and MOLSA for supporting the visit.
Thanks for your time and willingness.
It is my pleasure.
BY GIRMACHEW GASHAW
THE ETHIOPIAN HERALD SATURDAY 9 NOVEMBER 2024
