Japan-Backed Startup Project Eyes Enhanced Ecosystem in Ethiopia, Kenya, and Tanzania

A three-year project to boost Ethiopia’s startup ecosystem was signed by the Ministry of Innovation & Technology (MINT) and the Japan International Cooperation Agency (JICA) last week. The two parties signed a record of discussions, and a document JICA signs with a host country outlining the objectives of a technical cooperation project. Kenuske Oshima, Chief Representative, JICA Ethiopia Office, and Bayissa Badada (PhD), State Minister of Innovation and Technology, signed the agreement.

Dubbed the Startup Ecosystem Enhancement Project in the Eastern African Region, it will include Kenya and Tanzania in its implementing scope. 

Taddesse Anbesse, Head of the Startup Desk at Mint, says a call to hire technical experts will be released in the coming months, who will go on to assist throughout the project life cycle. He believes that the latest initiative will help in creating the capacity to formulate strategies that can deal with ecosystem hurdles for local startups.

“This will be much more comprehensive than previous projects,” Tadesse told Shega.

JICA is set to develop a National Master Plan and action plan, facilitate startup ecosystem research and analysis, and start pilot projects to promote the ecosystem in collaboration with other stakeholders. Ethiopian startups might also be able to access collaboration and research opportunities with Japan-based corporations  

Tadesse indicated that a high-level agreement has been reached, while details on country-specific budgets remain to be outlined. A project design matrix will be developed by technical staff set to be recruited in the coming months. One of the focus areas of the project will be enhancing the capacities of MiNT officials to enable ecosystem growth. Even though this project prioritizes ecosystem building and improved technical competency, JICA has provided several financial and research supports directly for Ethiopian startups.

In 2020. JICA provided support for Ethiopian startups through Project NINJA (Next Innovation with Japan), which entailed business plan competitions and acceleration programs. As part of an acceleration program, JICA screened 114 start-ups, with six making the final cut to unlock a four-month training in business development to engage in a proof of concept (POC) and a visit to Japan. Nine months back, the Agency also entered into an agreement with MiNT for a three-year project aimed at supporting tech-based enterprises. Another initiative currently in progress entails direct support for incubation centers located in Ethiopia’s universities.

However, Ethiopian startups have continued to struggle in scaling up their operations due to a nexus of financial, legal, and technical hurdles. A startup proclamation in development for half a decade has yet to receive parliamentary greenlight despite an amended draft being introduced late last year. JICA’s latest initiative might contribute to swift ratification by fostering international perspectives and technical prowess at the Ministry. Tanzania entered into a similar agreement with the Agency back in September.