Ethiopia, Africa's second most populated country, is forecasted to be the fastest growing economy in Sub-Saharan Africa this year according to data from the IMF. At the same time, the market is riddled with challenges. State-owned enterprises dominate the economic landscape, which have constricted the private sector’s ability to flourish. However, recent government-led market reforms are beginning to paint a positive outlook for Ethiopia’s private sector. For example, opening up the national airline to foreign investment is an encouraging signal for what may lie ahead for businesses throughout the country.

The journey to mapping Ethiopia’s entrepreneurial ecosystem started in February 2017, with support from the Department for International Development (DFID), at an Aspen Network of Development Entrepreneurs (ANDE) event that brought together a select group of investors, capacity development providers, and funders who support small and growing businesses (SGBs) in Ethiopia. ANDE and the meeting participants conducted an initial assessment of business support providers within the ecosystem at the meeting.

Top Sector of Focus

49%

of survey respondents focus on Agriculture & Food

Top Verticals

61%

of survey respondents focus on AgTech

Top Financial Instrument

86%

of survey respondents provide Equity

Non-financial Support

63%

of survey respondents focus on Sector development

Top Impact objective

74%

of survey respondents focus on Income/productivity growth

Top Stakeholder Focus

66%

of survey respondents focus on Accessibility