The Italian government aims to position the country as a digital and innovation hub in East Africa, relying on international cooperation to achieve this goal.

Ethiopian Finance Minister Ahmed Shide signed a €4.5 million ($4.6 million) grant agreement earlier this week with Italy’s Minister for Universities and Research, Anna Maria Bernini. The collaboration aims to foster the emergence of startups and accelerate the adoption of digital services in Ethiopia.

Specifically, the partnership includes the establishment of an e-services and startup incubation center, a training hub, and a high-tech talent development center. It also involves the creation of a Fab Lab (Fabrication Laboratory) equipped with cutting-edge tools for manufacturing and prototyping.

This initiative aligns with Ethiopia’s Digital Ethiopia 2025 plan, which seeks to harness digital opportunities to transform the country into a knowledge- and innovation-driven economy. Ethiopia has already partnered with the Global Innovation Initiative Group (GIIG) to strengthen its startup ecosystem and has launched a program to train five million coders by 2026.

According to the GSMA, investments in mobile technology and digitalization are expected to drive growth in key sectors such as agriculture, manufacturing, and public services. These efforts could create over one million new jobs and generate 57 billion birrs (around $446.4 million) in tax revenue. Additionally, digital expansion is projected to boost economic growth across various industries, contributing an estimated 140 billion birrs to agriculture and 114 billion birrs to manufacturing by 2028.

By Isaac K. Kassouwi,

Editing by Sèna D. B. de Sodji