Prime Minister Abiy Ahmed (PhD) said on his social media recently that the government would embrace innovation as a key approach for sustainable development. If implemented with due commitment and synergy of all stakeholders, the government can do economic and social miracles through promoting innovation.
For centuries, innovation has been the epicentre of economic and social development. An important factor brings about differences in the development course of society. Therefore, a country that embraces innovation as a fundamental approach will succeed in ensuring sustainable transformation.
This era is a time where developing countries especially Africa can contribute to the development of their economies in particular and that of the globe in general through promoting innovative approaches to trade, investment, tourism, transport … etc.
Africa has to harness innovation to its economic development through increasing productivity. It has to enable its businesses to adopt innovative technologies and methods to produce more goods and services with fewer resources. It has to oversee that companies implement innovations to enjoy significant cost savings and increased output, leading to greater competitiveness in the global market. These productivity gains are essential for economies looking to grow, as they allow for higher profits and, consequently, more investments in workforce development.
Furthermore, the continent has to promote innovation as it fosters job creation. Africa’s population has exceeded 1.4 billion which is largely constituted by young and working population. It is unrealistic to address the economic needs of such a large population using the business-as-usual approach. It is mandatory to seek ways where a considerable proportion of them can create their own jobs; in this regard, innovation becomes an ideal solution.
Africa’s economy is untouched potential that can be harnessed largely through innovation. So, far the governments in African countries have made policy measures to ensure development by attracting foreign investment, forming common markets or free trade areas… etc. Up next in their task is upholding innovation as a major approach to realizing tangible growth.
In many ways, Ethiopia is in a good position to spearhead innovation activities. Starting from the establishment of innovation at the ministerial level the government has been providing various incentives for innovators and startups. In addition to its role as facilitator and enforcing body, the government should uphold its role of coordinating the specific role of at least young innovators, higher education and the private sector or financial institutions.
Higher education plays a vital role in fostering innovation, acting as a catalyst that drives economic growth and societal advancement. Through a combination of teaching, research, and community engagement, universities and colleges prepare students to become inventive thinkers and problem solvers in an ever-evolving world.
Higher education institutions provide an environment that encourages creativity and critical thinking. Students are exposed to diverse fields of study and interdisciplinary approaches, allowing them to tackle complex problems from various angles.
Furthermore, universities serve as research hubs that contribute significantly to technological advancements and innovations.
Additionally, they actively collaborate with industries to create programs that respond to real-world needs. This collaborative approach ensures that the curriculum remains relevant and prepares graduates for the challenges they will face in their careers.
Financial institutions play a crucial role in supporting innovation, acting as both enablers and facilitators in the development of new ideas and technologies. Their support is essential not only for emerging startups but also for established businesses striving to innovate and remain competitive. Financial institutions provide essential funding that fuels innovation. Startups often require significant capital to transform their ideas into viable products or services. Secondly, financial institutions can offer advisory services, which are invaluable for startups and small businesses.
In general, the government needs to uphold its ongoing efforts of promoting innovation as the future path of development through motivating and mobilizing the aforementioned actors and other stakeholders.
THE ETHIOPIAN HERALD THURSDAY 27 MARCH 2025
