Is Addis Ababa a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Addis Ababa has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Addis Ababa gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Addis Ababa

Funding is one of the most critical ingredients in building a successful startup – and Addis Ababa offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Addis Ababa's early-stage funding environment is evolving, with local players like the Addis Ababa Angels Network actively investing in tech-enabled startups. The government is also stepping in, with initiatives like the Innovation & Technology Fund offering grants and the new Startup Proclamation aiming to improve the regulatory landscape and establish a Startup Innovation Fund. Despite these positive steps, startups face significant challenges, including a substantial seed-stage funding gap compared to other African ecosystems. Access to finance is a major hurdle, with traditional banks hesitant to lend and limited developed options for venture capital, angel investment, and crowdfunding. Regulatory barriers, economic instability, and a lack of developed investor networks also contribute to the difficult environment for early-stage ventures.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Addis Ababa has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Addis Ababa has a developing startup and innovation culture with increasing entrepreneurial activity. The city is home to over 300 startups and numerous ecosystem builders. Coworking spaces like ADORE Addis, CoSpace Ethiopia, and Maraki Workspaces are present, offering flexible work environments and networking opportunities. The city hosts various tech events and conferences, including Ethiopia Startup Week, ICT Expo Ethiopia, and others focused on specific sectors like tech marketing. The ecosystem supports both early-stage and more mature startups. Initiatives like the government-backed NEST program and organizations such as the Addis Ababa Angels Network aim to provide support, including funding, mentorship, and capacity building, for early-stage ventures. While standardized programs exist, there are efforts to provide tailored support and address the funding gap for early-stage businesses. The recent Startup Proclamation also aims to create a favorable legal environment and provide incentives for innovation-driven enterprises.

For many entrepreneurs, the energy and resources available in Addis Ababa can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Addis Ababa, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Addis Ababa is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Addis Ababa has a growing talent pool for startups, fueled by numerous educational institutions like Addis Ababa University and vocational training centers that produce thousands of graduates annually. These institutions contribute significantly to the availability of skilled professionals, particularly in fields like STEM. While there's a large labor pool, finding candidates with specific advanced technical, digital, and management skills can be challenging. However, initiatives like the Alibaba Global Digital Talent Academy and platforms such as Gebeya are working to enhance industry-specific skills, particularly in e-commerce, digital marketing, and software development. Local talent supports entrepreneurial growth through a young and eager workforce and a growing pool of entrepreneurs. The government and organizations are actively fostering a supportive ecosystem through initiatives, networking platforms, and dedicated ICT parks, positioning Addis Ababa as a burgeoning startup hub.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Addis Ababa can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Addis Ababa boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Addis Ababa offers a growing ecosystem for startups, supported by various infrastructure and support systems. These include incubators and accelerators like iceaddis and blueMoon Ethiopia, providing mentorship, training, and resources. Co-working spaces are also available. Funding sources like Addis Ababa Angels Network and government initiatives such as the Innovation & Technology Fund offer crucial financial support. The Ethiopian government plays a significant role through initiatives like the Digital Ethiopia 2025 strategy and the new Startup Proclamation. These aim to simplify business registration, provide incentives like tax holidays and grants, and establish a supportive legal framework. The 200-hectare ICT Park is dedicated infrastructure for tech startups. These resources collectively help startups thrive by providing necessary skills, funding, networking opportunities, and a more favorable business environment.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Addis Ababa. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Addis Ababa Be Considered the Best Place to Launch a Startup?

There’s no doubt that Addis Ababa provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Addis Ababa face several hurdles. Competition exists, with established players having advantages in resources and recognition. While some reports suggest a lower cost of living compared to cities like London, Addis Ababa is considered the most expensive city in East Africa, with rising rental prices and high inflation impacting living and operational costs. Regulatory issues are significant, including complex and time-consuming processes for licensing and tax compliance, and an unpredictable tax regime. Bureaucratic barriers and inconsistent interpretation of regulations also pose challenges. Access to finance is a major obstacle, as the legal system is not always conducive to venture capital and angel investors.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Addis Ababa or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Addis Ababa offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash