Ecosystem Report

Ethiopia Startup Ecosystem- A Report by JICA & MInT

| December 11, 2023

JICA, in collaboration with the Ministry of Innovation and Technology of Ethiopia (MInT), recently conducted a study called “JICA Ethiopia Startup Ecosystem Study” under JICA’s project NINJA (Next Innovation with Japan). As part of this study, a summary and detailed documents have been released. These documents provide valuable insights into the startup ecosystem and business environment for startups in Ethiopia.

As the world continues to undergo digital transformation (DX), there is a growing interest in new businesses that leverage technology. Investors from Europe and the United States are increasingly focusing on the potential market in Africa. Ethiopia, with a population of approximately 112 million, has a large enough market for startups to develop their businesses. Moreover, the country has been transitioning towards a digital economy in recent years, thanks to improvements in the telecommunications environment and government policies. As a result, it is one of the countries with the greatest business potential. This report will provide you access to 300 Ethiopian startups and 80 stakeholders in the startup ecosystem.

Please follow the link to access the report.

English: JICA Ethiopia Startup Ecosystem Report | Our Work | JICA

Japanese: 「エチオピアスタートアップ・エコシステム調査」報告｜事業について – JICA

Objective and Methodology

・Back Ground and Objective： The primary information on the generally accessible Ethiopian startup ecosystem is limited and partial. Therefore, a survey was conducted to organize information on startups and the startup ecosystem in Ethiopia and to identify characteristics and potential/problems.

・Methodology： The survey was distributed to almost 800 institutions and firms in the Addis Ababa startup ecosystem. From those, survey data was collected from 300 startups and 80 stakeholders. Furthermore, the report included 15 face-to-face interviews with stakeholders to gain more in-depth insights.

1. Startups in Ethiopia and Addis Ababa

The following is a 9-point summary of Ethiopia’s attractions and characteristics (For example, Huge Population and Market Size, Improving Business Environment, and Changing Customer Perceptions are the features)

A. Why Ethiopia?

2. Analysis of Startup

Leading startups in Addis Ababa, Ethiopia, are summarized in two levels of the sector (Startup Map) and detail within the sector (e.g., Mobile Money/ Payment, Remittance, and Payment Processing and Lending and Saving in Fintech Startups). Detailed information (website) for each startup is also included.

Additionally, we analyzed startups in Addis Ababa by various factors (gender by business stage and sector, Job Creation Potential, Business Revenue, Startup Valuation Process, Fund Raising, Business Environment, etc.).

B. Startup Map

C. Detail within the sector

Fintech Startups in Addis Ababa (e.g., Mobile Money/ Payment, Remittance, and Payment Processing and Lending and Saving in Fintech Startups)

D. Startup Business Stage Analysis

3. Analysis of Startup Ecosystem and Stakeholders

Map of the startup ecosystem in Addis Ababa, Ethiopia, and details of 13 different actors (Startup Ecosystem Builders, Established Investors, Educational Institutions, etc.), and 16 Co-working Spaces in Addis Ababa are summarized. Website details of each actor are also summarized. Knowing the actors in Addis Ababa, the startup capital of Ethiopia, gives you a glimpse of the startup environment in an African country, for example.