With the government’s initiatives to create a conducive ecosystem for the startup industry and continuous support for startup businesses, the startup industry has shown significant developments in recent years. Different initiatives are being applied by the government to promote and develop start-ups. Especially, the incentives, support, and the enabling ecosystem by the reformist government help the rise of startup businesses and innovations during the past five years.
Ethiopia aims to make the technology sector the backbone of its development. For the development of the technology sector, the government focuses on promoting the development of home-grown ideas and startups. These initiatives of the government and the conducive environment for the sector inspire local innovators, start-uppers, and researchers. These continuous and all-rounded efforts have brought new changes in the trends of the startup industry in Ethiopia in recent years.
According to Startup Blink’s Global Startup Ecosystem Index 2024, released this week, the startup industry in Ethiopia shows significant development. Global Startup Ecosystem Index 2024, in 2024 the startup scene of the capital, Addis Ababa shows considerable development and increased in the Global Index by 89 posts. (Startup Blink is a global startup map and research center, empowering stakeholders with ecosystem development services and tailored analysis on the global innovation economy).
The Global Startup Index 2024 revealed that Addis Ababa’s startup ecosystem ranked 10th in Africa, showing significant developments from the previous years. Not only Addis Ababa but also, according to Startup Blink- Global Startup Index 2024, the startup ecosystem in Ethiopia registers remarkable developments within recent years.
According to the Global Startup Index 2024 report, international cities startup rank, Addis Ababa city’s rank in the startup ecosystem has increased by 89 posts. Accordingly, by improving from its previous rank of 417, Addis Ababa city ranked 328 in the international startup rank of cities in the 2024 Global Startup Index. According to the index, from 1000 international cities ranked by Startup-Blink, Addis Ababa ranked 328 at the international level, 10th among African cities, and 4th among East African cities, according to the Global Startup Ecosystem Index 2024.
This radical development in global and regional ranking is the outcome of the government’s initiatives and investments to promote the startup industry in the country. To create a conducive and enabling ecosystem for the startup industry, the Ethiopian government is taking serious measures and actions to inspire and promote innovators and start-uppers. In addition, the government amends policies about the startup industry aiming at creating vibrant startups.
In promoting and developing the startup industry, the Ministry of Innovation and Technology (MInT) jointly with other stakeholders, gives due attention to the sector. This effort helps Ethiopia to improve its ranking at the international level and create vibrant and competitive start-uppers. Similarly, internationally competitive innovators and start-uppers are joining the industry, inspired by the ecosystem and the development of the industry.
Among the government’s initiatives to promote innovators and start-uppers, in addition to reforming the policies and strategies, are awarding the innovators, organizing startup exhibitions, creating market linkages, applying different incentives, and providing financial support to realize their ideas. In this regard, only in this budget year, a lot of events targeting to promote startups were organized by MInT and other governmental institutions. The ecosystem promotes startups and home-grown ideas.
This week, on Monday, a Startup Ethiopia Awards, which was part of the Global Startup Awards program, was organized in Addis Ababa. During the award program, successful start-uppers were recognized. During the award ceremony, Deputy Prime Minister, Temesgen Tiruneh said that the Ethiopian Government gives due attention to creating a technologically developed country. Accordingly, he said, the government focuses on supporting, promoting, and creating a conducive environment for startup technologies to realize the national vision of creating a technologically developed country.
Temesgen stated that “the Ethiopian Government is working to make Ethiopia a technology influencer country.” According to Temesgen, similar to other critical sectors, the government gives due focus for the startup technologies to realize the country’s prosperity endeavors.
“The reformist government is working on vast development works to transform Ethiopia into a new chapter of development. Summer irrigation wheat initiative, green legacy initiative, and other infrastructural developments are bringing meaningful outcomes for the country,” he stated. Parallel to that, the government continuously supports startup businesses, to make the sector an engine of the country’s economic development.
Special attention is given by the government for the development and promotion of startups in the country, according to Deputy Prime Minister Temesgen. Countries that become internationally dominant in the innovation and technology sector are dominating the global economy and ensuring their development works. As to him, understanding the role of innovation and technology in the overall development of a country, Ethiopia gives due attention to the development of the startup industry. He assured that the government will continue the investments and initiatives in creating a more suitable ecosystem for the sector and to support start-uppers.
According to the Deputy Prime Minister, start-ups can play a great role in accelerating economic development and technology transfer. By promoting and encouraging local innovations and technological developments, the Ethiopian Government is working to make Ethiopia an influencer in the innovation and technology sector. So far, the country has convened chains of startup events and exhibitions, thus fetching valuable experiences that help address possible setbacks witnessed in the sector, the DPM noted.
Ministry of Labor and Skills (MoLS), Muferiat Kamil for her part stated that the ministry is giving due focus to the development of innovation and entrepreneurship as part of the country’s ten-year perspective plan. To explore the untapped potentials and skills, the ministry is working on significant milestones to facilitate, explore, capacitate, and harness emerging startups via mentorship, training, and capacity building to spur global connectivity as well.
As to her, Ethiopia highly requires knowledge-led innovative solutions for resilient economic development. It was learned that 68 start uppers were selected to participate in the coming 2024 global startup competition from about 731 Ethiopian start uppers involved in the 2023 competition.
Meanwhile, while attending the Global Startup Awards program here in Addis Ababa, global startup founders laud Ethiopia’s incredibly encouraging ecosystem for startup businesses. Speaking to ENA, Global Startup founders stated that Ethiopia creates a healthy environment for startups.
Appreciating the ecosystem for startups, Global Startup CEO and Founder, Kim Balle said that the Ethiopian government has created a healthy ecosystem for startups. As to him, lack of support from national agencies and governments globally, a lot of founders and startup entrepreneurs are going down. This shows that, for the success of startup entrepreneurs, it is critical the support of government agencies.
On the other hand, Global Innovation Initiative Group (GllG) Co-Founder, Jo Griffiths on her part said that the Government of Ethiopia is incredibly encouraging start-uppers. As to her, Ethiopia’s commitment to developing startups is astoundingly promising, adding that the impact is visible in various activities such as Ethiopia hosting the Startup Award Program.
“We observed significant solutions in coming in Agri-Tech, financial inclusion, and education, among others, especially from Ethiopia where there is an incredible increase in technology in the agriculture sector.” The Startup Award Program was organized by the Ministry of Innovation and Technology (MInT), Ministry of Labor and Skills (MoLS), and Global Startup Awards.
BY DARGIE KAHSAY
THE ETHIOPIAN HERALD FRIDAY 7 JUNE 2024
