June 7, 2025
Ehiopia’s Council of Ministers has unanimously approved the long‑delayed Startup Proclamation, signalling a major policy shift towards supporting the country’s nascent technology sector.
The draft law, which provides a dedicated framework for early‑stage, technology‑driven companies, now awaits debate and passage by the House of People’s Representatives.
Officials said the Startup Act aims to address chronic barriers faced by entrepreneurs—chiefly limited access to finance, regulatory ambiguity and underdeveloped infrastructure—by offering targeted incentives and streamlined procedures.
Under the draft, which was prepared by a task force led by the Ministry of Innovation and Technology, a “startup” is defined as a technology‑based enterprise less than three years old with annual gross revenue below ETB five million (approximately 38,000 US dollars).
But the financial thresholds in the code were calculated when the US dollar traded at just 57 birr. Since then, the birr has weakened significantly following the government’s shift toward a more flexible exchange rate regime, with the official rate now approaching 130 birr to the dollar—more than double what it was when the law’s provisions were drafted.
The draft law envisages the creation of an Ethiopian Startup Fund (ESF) with an initial endowment of two billion birr (around 36 million US dollars) to provide seed grants and low‑interest loans.
In addition, accredited incubators and accelerators would receive co‑financing of up to 30 percent of project costs, and public universities would be required to allocate at least two percent of research budgets to partnerships with certified startups.
A central feature of the Act is the establishment of a one‑stop “Startup Desk” within the EIC to issue certificates, maintain a registry and coordinate with regional states. The legislation also proposes a regulatory sandbox regime under the National Bank of Ethiopia for fintech products and under the Ethiopian Communications Authority for telecom‑related services.
Certified startups operating within these sandboxes could pilot products for up to 12 months under relaxed rules, provided they meet consumer‑protection and reporting requirements.
If approved by parliament—anticipated by mid‑July—the Startup Act will take effect 15 days after publication in the Federal Negarit Gazeta. Existing startups that meet the criteria at enactment will have a 90‑day window to register and claim retroactive benefits.
(BirrMetrics)
$60M to speed up digital connectivity infrastructure in Ethiopia, Djibouti, Tanzania
A data center operator, Wingu Africa, has announced the obtention of $60 million to accelerate the rollout of critical digital connectivity infrastructure in Ethiopia, Djibouti and Tanzania.
In the announcement, the company says the funding has been provided by a corporate and investment bank, Rand Merchant Bank, with the aim of strengthening the digital ecosystems in these three East African nations and power their digital transformation efforts.
Following the fund raiser, the Group CEO at Wingu Africa, Anthony Voscarides, described the move as an investment towards Africa’s digital sovereignty.
“This is not just an investment in infrastructure, it’s an investment in Africa’s digital independence. We’re expanding the capacity that will empower innovation, accelerate economic growth, and connect Africa to the future,” he said.
The company’s deputy CEO, COO and Co-founder, Demos Kyriacou, also remarked: “The mission is clear: to build the digital backbone of Africa. We’re delivering at scale, with neutrality, trust, and vision, enabling the continent’s digital sovereignty and future growth.”
Corrie Cronje, a senior transactor at Rand Merchant Bank, said providing the funding shows the bank’s support for Wingu Africa’s “commitment to advancing digital growth across the continent” and its desire to invest in a connected future for all.
(BIOMETRIC UPDATE)
Ethiopian Airlines considering order for at least 20 regional jets, CEO says
Ethiopian Airlines is looking to order at least 20 regional or small narrowbody jets as it moves to expand its domestic fleet and replace some ageing aircraft, the airline’s chief executive told Reuters on Monday.
“We are evaluating three aircraft models, the E-2 from Embraer, the A220 from Airbus, and the 737 MAX 7 from Boeing,” CEO Mesfin Tasew Bekele said in an interview.
The final order quantity will depend on the type chosen, he added. Boeing’s 737 MAX 7, which has a larger seating capacity and sits at the bottom of a larger category than the Airbus A220 and Embraer E-2, is yet to be certified.
Africa’s largest carrier is experiencing strong travel demand but has been constrained by jet delivery delays and the grounding of some aircraft due to engine shortages stemming from supply chain disruptions.
“We are receiving airplanes from both Boeing and Airbus, but deliveries have been delayed, some by three months, some six months, some more,” Mesfin said on the sidelines of an annual IATA meeting of global airline leaders.
The company is also in talks with lessors to bring onboard some jets to ease capacity constraints.
The airline is among several facing grounded aircraft due to bottlenecks in engine maintenance plants. Ethiopian has three Boeing 787 widebody jets grounded due to a shortage of Rolls-Royce engines, with five turboprop aircraft grounded due to a shortage of RTX’s Pratt & Whitney engines.
“Normally engines were supposed to be repaired and returned in three months typically, but now it takes six months or even more to get them repaired and returned,” Mesfin said.
(REUTERS)
GAC launches in Ethopia with emphasis on NEV ecosystem
China-based GAC International has held a brand launch event in Addis Ababa, capital of Ethiopia, officially announcing its “Ethiopia Action” and introducing two new energy vehicle (NEV) models – the AION Y Plus and the electric SUV ES9.
The event was attended by high-level government officials including Chinese Ambassador to Ethiopia, Dr. Alemu Sime Feyisa and Feng Xingya, Chairman and President of GAC Group.
Chairman Feng highlighted Ethiopia’s 120 million population market and fuel vehicle ban as key NEV opportunities, pledging GAC’s green transition support. The company also committed to charging station rollout and ‘joint industrial hub development to modernise Ethiopia’s auto industry’.
Under its “One GAC 2.0” globalisation strategy, GAC said it will leverage its ‘built-in energy ecosystem to establish a full-chain industrial ecosystem, delivering end-to-end NEV solutions covering product development, intelligent manufacturing, channels, and services’.
GAC’s “Ethiopia Action” strategy launches the AION Y Plus and ES9, showcasing pure electric and plug-in hybrid options. GAC has opened the first flagship showroom in Addis Ababa with nationwide expansion planned and said it is also advancing localization via a KD (knock down kits) factory.
The Ethiopian Investment Commission and Transport and Logistics of Ethiopia, spoke highly of “Ethiopia Action”, confirming the project’s inclusion in national automotive strategy, supporting “Made in Ethiopia 2025”.
GAC also said that as the ‘gateway to East Africa, Ethiopia will serve as GAC’s key hub for implementing the Belt and Road Initiative and advancing Africa’s green mobility transformation’.
(Just Auto)