Addis Ababa – The House of People’s Representatives has unanimously approved the long-awaited Startup Proclamation, a legislative move hailed by lawmakers as a catalyst for economic transformation and a bold investment in the country’s youth.
During its second emergency session, members of the House described the proclamation as pivotal to unlocking Ethiopia’s economic and technological potential. Designed to foster innovation, attract investment, and generate high levels of youth employment, the legislation marks a significant shift toward a knowledge-driven economy.
“The Startup Proclamation will play a critical role in building a vibrant economic ecosystem that connects executive institutions, financial actors, and private investors,” said Negeri Lencho (PhD), Chair of the Standing Committee on Human Resources Development, Employment and Technology Affairs.
At the heart of the legislation is a promise: to empower Ethiopia’s young innovators not just with encouragement, but with concrete tools. The proclamation outlines a comprehensive support system, including a national grant programme, loan guarantees, and a ‘fund of funds’ structure to address financial barriers commonly faced by startups.
Negeri emphasised that startups have the potential to become global players, capable of scaling up into large enterprises that can compete on the world stage. The new law introduces a formal recognition and labelling mechanism to identify startups, along with a capacity-building framework to help them succeed.
Members of parliament noted that the move is more than an economic strategy, it is a response to the growing aspirations of Ethiopia’s youth, many of whom face unemployment despite high levels of education and creativity.
By enshrining these reforms in law, Ethiopia is not just encouraging innovation; it is making a statement that the future of the country will be built not only in factories or farms, but in labs, laptops, and ideas.