Ethiopia Doubles Down on AI With 42% Budget Boost to Government Institute

Ethiopia’s latest federal budget, ratified last week, allocates 1.13 billion Birr to the Ethiopian Artificial Intelligence Institute (EAII), signaling the government’s growing interest in a technology reshaping the global economy. The figure represents a 42 percent increase from the last fiscal year’s budget of 795 million Birr to the three-year-old institute. Classified as an element of fiscal allotment to public institutions that fall under the umbrella of justice and security, the institute remains largely unknown to the wider public.

EAII was first inaugurated by Prime Minister Abiy Ahmed (PhD) during the COVID-19 pandemic initially as the Artificial Intelligence Center. Two years down the line, a regulation by the Council of Ministers reestablished the Center as an institute with expanded powers. Reporting directly to the PM, the Institute’s duties include advancing AI research and advising on policy, as well as facilitating collaborations to address local challenges with tailored solutions in sectors such as agriculture, healthcare, education, and Natural Language Processing (NLP) for Ethiopian languages. 

Beyond its research and development mandate, however, the Institute also plays critical national security functions. EAII's mission includes utilizing AI to collect and analyze data for national security purposes, collaborating with law enforcement agencies to prevent and investigate crimes, and certifying imported AI technology for domestic use. Shega could not get a response from the Institute by the time of publication.

As a recent GSMA report on AI development in Ethiopia showed, the Institute is heading the development of AI solutions across multiple sectors. EAII established a Tier III data center, which provides services for government agencies and financial institutions. Its most notable achievement, open to the public, has to do with an AI-powered breast cancer detection tool that utilizes machine learning (ML) algorithms to analyze mammograms. The technology has been piloted in four public health facilities, including St. Paul’s Hospital, where it was validated by medical professionals. However, securing full support from the Ministry of Health (MoH) has been slow, which has delayed broader adoption. Despite government support being critical in launching the breast cancer tool, accessing long-term funding has remained a challenge.

Nonetheless, EAII’s contribution to the comprehensive development of AI technology can only go so far without active participation from the private sector. "A robust AI ecosystem requires collaboration between public and private actors to address foundational gaps," reads the GSMA report. 

Even with the 42% expansion of fiscal space, poor data availability, weak infrastructure, regulatory gaps, limited computing power, and a shortage of skilled human resources remain critical barriers. Furthermore, while the Council of Ministers approved the country's first national AI policy a year ago, the document is yet to reach the public.

According to the GSMA report there are 60 key AI actors in the country, including Kifiya Financial Technology, iCog Labs, Garri Logistics, the Prime Minister’s Office, as well as research and academic institutions, and infrastructure providers such as Ethio Telecom.

While the state’s continued role will prove to be vital in formulating policy, polishing regulatory frameworks, and licensing, it might be impossible to catch up to global trends without private capital. Recent efforts to attract AI startups for training, technical, and funding support could prove to be a rewarding strategic orientation.