Context:
Ethiopia is transitioning from a state-led economy to a more liberal, market-driven system. This shift aims to promote a stronger private sector growth, create jobs for the country’s rapidly growing population, and drive a real economic transformation.
Certain progress has already been made, including stabilising the exchange rate system and improving foreign exchange availability. However, Ethiopian businesses still face challenges such as bureaucratic hurdles, limited access to finance, and increasing global competition. At the same time, internal conflicts and global economic disruptions further raise costs, disrupt supply chains, and hinder economic growth.
Objective:
Micro, small, and medium-sized enterprises (MSMEs) and startups, including those in post-conflict areas, benefit from improved growth opportunities that create jobs and drive long-term economic development.
Approach:
The project enhances growth opportunities for businesses through targeted measures. It:
1. Promotes a business-friendly environment by strengthening public institutions as well as chambers and associations to reduce bureaucratic barriers and improve services for businesses;
2. Supports startup and business development service (BDS) markets by enhancing the capacities of incubators, accelerators, and private consulting firms through international certification, improved service provision, and expanded networks;
3. Supports MSMEs and entrepreneurs in (post-) conflict areas by providing technical assistance, enhancing creditworthiness, and creating market linkages.
