Tech entrepreneur Meried Bekele’s book Ethiopia Incorporated: Transforming the Way Businesses Run in Africa officially launched in November 2024, and with it has come one shrewd observation: Ethiopia has the potential to emerge as a thriving, industry-driven nation with a significant presence in the global market—if only it can get out of its own way.

Bekele, who became the first person in Ethiopia to earn the coveted CCIE certification, did what few have done after achieving such success—he stayed in Ethiopia for one simple reason: There’s work to be done in his homeland. 

After building IE Networks, which became Ethiopia’s leading IT solutions provider, the CEO and engineer became an example of resilience and leadership and set about identifying the obstacles he faced on his entrepreneurial journey with an acute understanding of the issues.

So what are the issues getting in the way of Ethiopian business? In Bekele’s analysis, everything from taxation to education is discussed with a problem-solution approach—framed in a way that not only helps entrepreneurs entering tech in Ethiopia but also acts as a guiding light for Ethiopian leadership.

6 Ways to Change Ethiopian Business

Here are six changes Bekele suggests that have the power to change Ethiopia and the world:

Streamlining Business Establishment

“All Ethiopian business leaders can attest: One minor bureaucratic issue can waste your week,” Bekele writes. 

Streamlining business establishment in Ethiopia—which at this time is a lengthy and complex process—will drive the number of new businesses created in Ethiopia, setting the stage for more success. Bekele recommends implementing “well-tested, secure tools to expedite systems,” including online business license applications or online portals for submitting documents.

Creating a System of Trust

Bekele writes that “there is no area more rife with corruption and inefficiency” than the tax system in Ethiopia. Tax evasion by corrupt businesses and predatory practices by auditors toward ethical businesses creates an atmosphere of distrust. The system is also inefficient and the lack of online services wastes valuable time and resources. In addition to new tax policies, Bekele calls for a change in culture: moving toward a system of trust where Ethiopia’s citizens, processes, and officials do the right thing and uphold justice when faced with corruption.

Making Financing More Accessible

“Finding and securing external capital is anything but streamlined,” writes the tech CEO. “Entrepreneurs must either bootstrap with existing wealth, ask for loans from friends and/or family members, or apply for loans from financial institutions, which involve high interest rates, long processing times, severe collateral requirements, and limited bank locations.” 

Bekele suggests bringing alternate financing options to Ethiopia that negate current collateral requirements to stimulate business growth. 

Investing in Learning

The education system in Ethiopia has suffered from stagnation, and today, the Ministry of Education “perpetuates old habits and builds schools without proper infrastructure.” Even when “students are perfectly skilled and prepared upon graduation, there are not enough jobs to accept them.” 

Bekele points to a lack of entrepreneurial and management training as the reason for the lack of jobs—and investing in education as the solution.

Exporting African Talent

In the same way that the business processing outsourcing (BPO) industry has transformed life in the Philippines and the historic call center industry transformed India, Bekele sees an opportunity for Africa to export their talented tech companies. 

With a “vast and highly valuable workforce available, [African companies] have the knowledge and expertise to provide the same services to international companies” at a competitive rate—as long as certain limitations on foreign outsourcing companies and investors are changed.  

Sparking a Digital Transformation

Closely tied to the last point, Bekele sees the “digital illiteracy of the public paired with the poor digital planning of the government” as a core reason why Ethiopia is currently an unwelcome environment for foreign business. 

Securing dependable networks, pushing for digital literacy, and granting internet freedom will drive connection and opportunity in Ethiopia, giving it a significant presence in the global market.

The Ethiopian business landscape and the landscape of African business as a whole are rapidly changing with the move toward digitalization, increased foreign investment, and a growing emphasis on innovation and entrepreneurship—driving significant growth in the digital economy. 

We’ll need thought leaders like Meried Bekele at the forefront to act as a North Star for entrepreneurs, executives, and policymakers as Ethiopia emerges as a global hub for business and technology.

“My hope is that [Ethiopia Incorporated] inspires the next wave of entrepreneurs to take on the risk and understand that their country and its people are worth the effort. With more ideas, more creativity and more action, Ethiopia’s private sector and economy can flourish.”

— Meried Bekele

To purchase Ethiopia Incorporated: Transforming the Way Businesses Run in Africa and read more about Meried Bekele’s suggestions and predictions for the future of Ethiopia visit Amazon. 

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