Ethiopia has taken a bold step toward empowering its innovation ecosystem. In a unanimous vote, the House of People’s Representatives has approved the long-anticipated Ethiopian Startup Proclamation, a legislative milestone aimed at transforming the country’s startup landscape.
Passed during the second emergency session of the parliament’s fourth operational year, the new law signals a shift in national policy — one that acknowledges the crucial role of startups in economic transformation, job creation, and technological progress.
According to the Standing Committee on Human Resources, Employment, and Technology Affairs, the proclamation will be implemented at all levels of government — federal, regional, and city administrations — setting the stage for more coordinated and supportive governance for entrepreneurs.
The proclamation is expected to unlock new opportunities for Ethiopia’s youth, many of whom are brimming with creative potential but often face systemic barriers to turning ideas into scalable businesses. By providing a dedicated legal framework for startups, the law aims to boost survival rates, improve access to finance, and foster a more competitive digital economy.
More broadly, it reflects a national vision: transitioning Ethiopia from a consumer of global technologies to a producer — capable of designing, building, and exporting solutions on its own terms.
While the success of the proclamation will depend on robust implementation and institutional alignment, it marks a critical step toward building a modern, innovation-driven economy — one powered by the energy and ingenuity of Ethiopia’s emerging startup class.
