The Global Startup Ecosystem Index by StartupBlink ranks Ethiopia in the top 100. The vibrant seed ecosystem of Ethiopia has jumped 5 spots to secure its position in the global top 100 for the first time in the ranking, and completing in the top 100, ranked 100th globally.
According to Startupblink there are several private sector organizations helping entrepreneurs succeed in Ethiopia’s business environment. Most notably, and a unique trend in Ethiopia’s startup ecosystem, is the role of the Ethiopian diaspora as they return to Ethiopia to push for digitalization and modernization of the economy and are granted special permits by the government to invest and operate in the country.
The startup ecosystem overview with a population of over 112 million people shows Ethiopia as a huge untapped market for entrepreneurs to satisfy, especially as it transitions to a more digital economy. However, to secure and keep its rank for the next year Ethiopia has lot to do.
“Ethiopia will have to keep up the great momentum of the Addis Ababa ecosystem while ensuring more of its cities join the top 1000,” shows the ranking index.
Several interesting initiatives are clearing a path for the development of the tech scene. Last year, Ethiopia’s Startup Act established a National Startup Council to be chaired by the Minister of Innovation and Technology, and tasked with guiding and supporting the country’s startup ecosystem. Also the Digital Ethiopia 2025 program is a digital transformation strategy built around leveraging four digitally enabled pathways and taking into account current economic drivers, whereas, Ethiopia ranks 34th globally in Energy & Environment Technology.
Nevertheless, there are challenges to entrepreneurs, that is, having few options for funding. Local specialized investors are rare, foreign players are wary of entering a closed economy, and banks are not geared towards the needs of startups. There is limited investment to capitalize on potential projects. according to startupblink.
Ride a transport hailing and booking platform, Deliver Addis, number one online delivery service featuring some of the best spots in town, Amole a digital banking platform with more than 2 million users across are recognized by Startupblink as notable startups and ecosystem champions.
Addis Ababa with a total population of about 5,006,000 and a cost of Living 70% cheaper than London, according to the StartupBlink, the only city representing Ethiopia in the global top 1000 cities, registered a significant jump of 197 spots and into the global top 500 at 495th in the National Rank City Global Rank.
“Addis Ababa is the 4th highest ranking city in Eastern Africa, Addis Ababa is active in a number of industries, including Energy & Environment Technology, Foodtech, and Transportation Technology,” said the report.