A New Era for Ethiopian Innovation, Ethiopia Ratifies Historic Startup Proclamation!

The Entrepreneurship Development Institute (EDI) is delighted that the House of People's Representatives (HoPR) unanimously ratified Ethiopia's first-ever Startup Proclamation on July 17, 2025. This landmark legislation is a monumental step forward, bringing much-needed legal clarity and robust support to our nation’s vibrant startup ecosystem. This is a shared victory for every innovator and entrepreneur working to build a more resilient and inclusive economy.

This proclamation is a game-changer, directly addressing the key challenges that have held back our entrepreneurs. It introduces powerful incentives such as an income tax exemption, duty-free import privileges on capital goods, and a loss carry-forward provision. More importantly, it establishes critical financing tools, including a national fund of funds, startup-focused grants, and a credit guarantee scheme, which will be instrumental in bridging the funding gap.

Having played a pivotal role in shaping this policy, under the Ministry of Labor and Skills, EDI remains committed to strengthening Ethiopia’s innovation landscape. We will continue to build on this momentum by providing tailored training programs, business development services, and enhanced access to finance and investment networks. This proclamation is not an endpoint, but a new beginning. Together, we will leverage this historic victory to fuel sustainable growth and job creation across Ethiopia.