Innovate Ethiopia: EBN's mission to transform the startup scene in the heart of Africa 

In Ethiopia’s dynamic innovation scene, a partnership emerged that represents a milestone in its journey towards sustainable development – the Private Sector Development in Ethiopia (PSDE) initiative. In PSDE, EBN’s strategic framework and project expertise leveraged the EU|BIC community’s capacity-building talents, propelling the Ethiopian startup ecosystem forward.  

It is a feat which gained us the recognition and esteem of the Ethiopian Ministry of Innovation and Technology (MiNT). We are thankful and proud of MiNT’s official endorsement, which resonates as a testament to our community’s impactful contributions.   

In close collaboration, the Ethiopian Ministry of Innovation and Technology (MiNT) and the European Business and Innovation Centre Network (EBN) crafted a Quality Standardisation Framework to empower a network of incubators, accelerators, and innovation hubs. The mission was to unlock the innovation potential of Ethiopia.  

Ethiopia’s innovation landscape is undergoing a transformative journey fuelled by strategic collaborations and capacity-building initiatives. The Private Sector Development in Ethiopia (PSDE) project focuses, among other things, on the capacity building of intermediaries in the Ethiopian innovation ecosystem. This ambitious project, financed by the German Government and implemented by the Gesellschaft für Internationale Zusammenarbeit (GIZ), sought the expertise of the European Business and Innovation Centre Network and the EU|BIC community to catalyse growth and innovation. The proposal set forth by EBN was designed to bolster the capabilities of intermediaries such as incubators, accelerators, and innovation hubs, ensuring that micro, small and medium-sized enterprises (MSMEs), startups, and growth-oriented companies could thrive and scale within an increasingly competitive global landscape. 

The European Business and Innovation Centre Network’s Approach to Enhancing Ethiopia’s Innovation Ecosystem  

Recognising unique challenges and opportunities within Ethiopia, EBN’s strategic approach was multifaceted, focusing on robust capacity-building and fostering a nurturing environment for innovation.  

Mission Commitments and Quality Standards: The commitment to elevating the Ethiopian Association Startup Ecosystem (EASE) by enhancing capacities and benchmarking against leading European ecosystems was at the core of our strategy. This initiative strived to infuse a culture of innovation, drive quality improvements across services, and pave the way for developing scalable and sustainable business models within the Ethiopian context.  

Key Objectives:  

• Facilitating Capacity Enhancement: EBN placed a significant emphasis on capacity building for EASE, providing tools, resources, and knowledge exchange platforms to bolster the capabilities of Ethiopian intermediaries.  
• Promoting Benchmarking with European Ecosystems: Understanding the value of international exposure, EBN facilitated opportunities for Ethiopian intermediaries to learn from and collaborate with the EU|BIC community, fostering the exchange of best practices and success strategies.  
• Ensuring Quality Standards: A cornerstone of EBN’s intervention was establishing and adhering to high-quality standards across incubators and business intermediaries, ensuring that services provided to MSMEs, and startups were of the highest calibre.  
• Exploring Business Opportunities: By connecting Ethiopian intermediaries with the Ethiopian diaspora in Europe and companies, we opened avenues for business opportunities, investment, and collaboration that were previously untapped.  

• Enhancing University Connections: Recognising the critical role of academia in the innovation ecosystem, EBN worked to strengthen the linkages between universities and the broader intermediary network, encouraging a seamless flow of knowledge, talent, and technology transfer.  

Addressing Bottlenecks: our strategy was also designed to address critical bottlenecks facing Ethiopian business intermediaries. These included challenges related to sustainable business models, skilled human capital, access to finance, and the need for dedicated pre-incubation support. Through targeted interventions, we sought to overcome these obstacles and lay the groundwork for a thriving innovation ecosystem.  

The European Business and Innovation Centre Network and the EU|BIC Collaborative Efforts and Activities  

Quality Standardisation Framework: A hallmark of EBN’s contribution was the development of a Quality Standardisation Framework in collaboration with MiNT. This framework sought to harmonise the startup ecosystem’s quality standards, emphasising the importance of regional economic development, quality business support, access to finance, and scaling Ethiopian innovations. Through this initiative, EBN aimed to ensure that Ethiopian startups not only thrived locally but also gained recognition on the international stage.  

Capacity Building Initiatives: EBN launched a comprehensive suite of capacity-building initiatives, offering training and expert advice to intermediaries on enhancing their service offerings for startups and small and growing businesses (SGBs). This knowledge sharing heavily relied on the tailored expertise of the EU|BIC community. The programs equipped intermediaries with the necessary skills and knowledge to support the growth and scalability of Ethiopian businesses.  

Strengthening Networks: Recognising the power of connectivity, EBN focused on establishing and expanding national and international networks. By promoting the exchange of experience and knowledge among various actors, including universities, investors, and other intermediaries, we facilitated a collaborative environment conducive to innovation and growth.  

Through these concerted efforts, the Private Sector Development in Ethiopia initiative addressed immediate challenges within the ecosystem and laid a solid foundation for its sustainable development. The jointly agreed standards tailored to the Ethiopian context practically set a precedent for future initiatives nurturing innovation ecosystems in developing economies.  

Impact and Milestones  

• Quality Standardisation Efforts: The implemented Quality Standardisation Framework marked a significant stride towards enhancing the quality and consistency of support services provided to Ethiopian startups. By setting high standards for business support organisations and fostering a culture of excellence, EBN contributed to elevating the overall effectiveness and impact of the ecosystem’s support structures.  
• Training and Capacity Building: Through targeted training programs and expert advice, EBN significantly improved the service offerings of intermediaries. These initiatives have empowered organisations and their support of startups and SGBs. They mainly addressed critical areas such as access to finance, market entry strategies, and business scaling.  

Testimonial from H.E. Bayissa Badada Badassa – State Minister, MiNT  

The Ministry of Innovation and Technology (MiNT) of the Federal Republic of Ethiopia officially recognises the European Business and Innovation Centre Network’s contribution. MiNT lauded EBN’s outstanding support in advancing the quality and capacity of intermediaries within the Ethiopian innovation ecosystem. It is a testimonial underscoring the collaborative spirit of EBN, the joint efforts, and the tangible benefits realised through this partnership. MiNT’s endorsement validates EBN’s impactful work, a testament to the potential of collaborations in further propelling Ethiopia’s innovation landscape.  

Looking ahead  

Through strategic interventions, collaborative endeavours, and a commitment to quality and excellence, EBN and its EU|BIC community can significantly enhance the innovation ecosystem of any region. This collaboration can bolster the capacity of intermediaries and empower startups by fostering a culture of innovation.  

Looking ahead, the need for continued support and development within the Ethiopian innovation ecosystem and in other international contexts remains paramount. EBN its vast international experience and the expertise of the EU|BICs to implement quality standardisation and capacity-building initiatives across international ecosystems. This commitment underscores EBN’s dedication to advancing Ethiopia’s innovation landscape and replicate its success story in other emerging markets and innovation ecosystems globally.  

The lessons learned from EBN’s initiatives in Ethiopia offer valuable insights for future initiatives nurturing innovation and entrepreneurship. Emphasising collaboration, adaptability, and sustainability will be crucial in building upon the foundations laid by EBN and its partners. To move forward, it is necessary to engage with both local and international stakeholders, explore innovative financial mechanisms, and develop a skilled talent pool. By adopting these strategies, there will be an advance in innovation ecosystems on a global scale, a rise in economic growth, and increased social development.