Blessed with rich natural resources and a youthful population, Ethiopia needs to create jobs to sustain the ongoing economic development. Mainly, job creation in the country has been focused on ensuring basic income and daily survival for millions. However, recent reforms signal a transition from subsistence-level employment toward a broader vision that integrates entrepreneurship, innovation, and long-term wealth generation. This transformation is driven by an emerging understanding that the country’s vast human and material resources must be strategically mobilized to foster sustainable economic growth and elevate the standard of living for its people.
At the heart of this new approach is the recognition that employment is not merely a means of survival but a foundation for prosperity and transformation. Muferihat Kamil, Minister of Labor and Skills, articulated this vision at the 19th edition of the “About Ethiopia” program held in Adama City. Speaking via video message, she stressed that the government’s revised job creation policy is rooted in the principles of wealth creation and long-term economic resilience. This shift represents a deliberate departure from previous policies that prioritized basic income, signaling a broader ambition to make employment a cornerstone of national economic strategy.
Muferihat outlined several strategic reforms currently being implemented by her ministry, including enhancements to skills development, improvements in employer-employee relations, and expanded employment opportunities. She highlighted that Ethiopia’s natural and human resources offer immense potential if leveraged effectively through structural reforms. The government’s Home-Grown Economic Reform agenda is central to this effort, aligning with the national 10-Year Development Plan and aiming to unlock Ethiopia’s latent economic capacity. The minister also emphasized the importance of sustainable business practices, urging entrepreneurs to look beyond short-term gains and focus on creating lasting economic value.
The role of the private sector in this transformation is also gaining significant attention. Jemal Ahmed, CEO of MIDROC Investment Group, underscored the need for increased private sector engagement in job creation and entrepreneurship. Presenting a paper at the same forum, he advocated for a stronger and more empowered private sector that contributes meaningfully to national development. According to Jemal, entrepreneurship should not be seen as the sole responsibility of the government; rather, the private sector must actively participate in creating employment opportunities and driving innovation. MIDROC, which has already generated over 68,000 jobs, serves as a model for how private investment can make a tangible difference in tackling unemployment.
Jemal further called on the private sector to aim beyond profit-making and to focus on serving the needs of the current and future generations. He pointed out the heavy reliance on gold and coffee for export earnings—commodities that currently account for 70 percent of Ethiopia’s export revenue—and urged efforts to diversify the country’s export portfolio. This, he argued, would not only stabilize the economy but also create new avenues for employment and innovation.
Complementing these calls for a more robust private sector is the Development Bank of Ethiopia (DBE), which is drafting a regulation to support idea-based investment. DBE Vice President Getachew Waqe noted during the forum that “idea financing” remains a missing link in the country’s entrepreneurial ecosystem. While traditional sectors such as agribusiness, manufacturing, mining, and energy continue to receive financial support, innovative business concepts often struggle to secure funding due to outdated financial assessment criteria. The new regulation, once approved by lawmakers, aims to close this gap by facilitating investment in creative ideas and fostering a culture of innovation.
Getachew highlighted that DBE has already created over 54,000 jobs, particularly through lease financing, and has provided training to more than 130,000 enterprises to promote fair wages and sustainable business practices. He emphasized that financial accessibility must be extended to youth and entrepreneurs working on novel solutions. The bank is also working closely with stakeholders and private sector partners to expand financing mechanisms and introduce policies that support entrepreneurship and job creation.
Efforts to align job opportunities with workforce capabilities are also underway, as detailed by Tilahun Bejitwal, an advisor to the Minister of Labor and Skills. Tilahun explained that a significant mismatch exists between available jobs and the qualifications of job seekers. While many employers struggle to find skilled labor, large segments of the population remain unemployed or underemployed. To bridge this gap, the Ministry is rolling out several projects designed to better match workforce skills with market demand. These include targeted training programs, improved financial accessibility for innovation, and the development of legal frameworks to support creative business models.
Tilahun noted that legal barriers and rigid financial evaluation standards often stifle entrepreneurial potential. He called for reforms that provide financial security and guarantees to entrepreneurs, enabling them to bring innovative ideas to fruition. The “About Ethiopia” panel discussions have become a critical platform for such deliberations, encouraging dialogue between policymakers, investors, and citizens. Tilahun praised the Ethiopian Press Agency for its role in organizing these events, highlighting the importance of sustained conversation and collaboration to improve the country’s labor market and economic landscape.
Youth engagement is a central theme in Ethiopia’s evolving employment strategy. Ezedin Jemal, CEO of Tina Mart, challenged young Ethiopians to move beyond a mindset of unemployment and instead focus on innovation and self-employment. Speaking during the forum in Adama City, he urged the youth to think creatively and develop solutions that respond to local and global challenges. Entrepreneurship, he argued, is about more than just starting a business—it is about generating ideas that transform lives and communities.
Ezedin emphasized the critical role of innovation incubation centers in fostering young talent. He pointed out that while Ethiopia has many creative minds, access to finance remains a major hurdle. He called on stakeholders, including the government, financial institutions, and development partners, to invest in these ideas and help turn them into sustainable enterprises. Drawing comparisons with developed countries, Ezedin highlighted how entrepreneurship is a key driver of economic progress and a pathway to self-sufficiency.
The collective insights shared at the “About Ethiopia” Program illustrate a multifaceted and forward-thinking approach to job creation. Ethiopia is moving decisively to realign its employment strategies with the broader goals of economic transformation, innovation, and wealth generation. The active roles of government institutions like the Ministry of Labor and Skills, financial entities such as DBE, and influential private sector actors like MIDROC and Tina Mart underscore a shared commitment to building a resilient and inclusive economy.
With the right mix of policy reforms, private sector participation, youth engagement, and investment in innovation, the country is well-positioned to turn its demographic and resource advantages into a foundation for lasting prosperity. The next phase of Ethiopia’s development will depend on how effectively it can implement these strategies and nurture an ecosystem that allows every citizen not just to work but to thrive.
BY DESTA GEBREHIWOT
THE ETHIOPIAN HERALD THURSDAY 12 JUNE 2025
