Ethiopian Guide: startup-friendly country 🌴☕️

According to the recent research and the audit of potential partners, Africa is said to be the most promising region on the planet.

Startups from the US, Europe, India, and China have already drawn their attention to Ethiopian market. Russian startups are also likely to develop there, as Ethiopia needs to develop medicine, energy, digital technologies, and agriculture.

Many industries of African economy are going to be developed. Particularly, the efficiency growth of agriculture, urbanization, industrialization, energy consumption increase, etc.
Only 10 years ago there was no mobile connection in Addis Ababa. However, in 2-3 years there is going to be 5G internet.

It is necessary to be aware that the essence of venture investments comply with the most investments in African projects. All the basic segments in Africa are not developed: banking (60-80% Africans are not bank clients), civil service, available and comfortable housing.

Technological sector in Africa is tiny in comparison to the world volume. According to the Partech-2020 report, African technology startups attracted investment amounting to $1,5 billion in 2018. It is less than 1% the world volume.

Totally, 359 deals have been considered. Leaders are Nigeria, Kenia, Egypt, and RSA. 25% out of the overall investment volume went to financial technology, 13% - agricultural technology, 10% - power sector, 10% - medicine, and 7% - e-commerce.

Ethiopia is the second largest African country and yet one of the poorest ones on the continent. GDP per capita is $2,300, which is 6 times less than in RSA. Ethiopian population is very young, the average age is 19 years. Ethiopia is an agricultural country: more than 80% is engaged in this industry. The main object of export is coffee. It’s important to understand that all the fundamental economy fields are under the dominant governmental control. Meantime, there is a strategic message of government - to move towards the increase of private capital and entrepreneurship.