Startups and entrepreneurs in Ethiopia can now have access to a new fund. The Abu Dhabi-based Khalifa Fund for Enterprise Development (KFED) has signed a partnership agreement with the Ethiopian Ministry of Finance aimed at providing over $100 million to help promote a culture of innovation and entrepreneurship in the African country.
A Look At The New Funding
- The new agreement, which was signed by Hussain Jasim Al Nowais, chairman, KFED and Admasu Nebebe, Ethiopian Minister of Finance, will help pave the way in enhancing innovation and supporting entrepreneurs in Ethiopia, a statement said.
- The funding will be used to implement a series of projects aimed at consolidating the Ethiopian government’s efforts to create a stable and balanced economy while also driving in other benefits like the creation of employment opportunities for the youth, women empowerment and enhanced capacity building for entrepreneurs and local institutions.
- The allotted $100 million will be supervised and maintained by the Ministry of Innovation and Technology, in cooperation with KFED.
- The proposed fund is expected to play a significant role in reinforcing the Ethiopian government’s move to create economic entities that will be capable of supporting and enhancing the stability of the economy, including the creation of jobs and reducing unemployment and poverty in different cities and regions in Ethiopia.
“Under this agreement, the KFED looks towards providing the vital elements needed in helping Ethiopians realize and establish their own projects which can play a key role in the move to reinforce their national economy,” Admasu Nebebe, Ethiopian Minister of Finance noted.
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The latest agreement highlights the growing strategic relationship between the UAE and Ethiopia which also saw the visit of Ethiopian prime minister Abiy Ahmad to the UAE back in March, where he met with the Crown Prince discussing a range of mutual bilateral issues.
The prime minister also just last week announced plans of sending 50,000 workers to the UAE over the next year to help reduce unemployment among skilled Ethiopian nationals.
The Khalifa Fund for Enterprise Development, which was established 12 years ago in Abu Dhabi, supports small and medium enterprises (SMEs) in the UAE and has funded more than 1,600 projects within the UAE and across 20 countries in Asia, Africa, and Europe.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.