Ethiopia is closer to becoming the ninth hub of UNDP’s Timbuktu Initiative, a pan-African program with a one-billion-dollar innovation fund to empower startups.
However, the inclusion is based on meeting some requirements from UNDP, according to Assistant Secretary-General and Director of UNDP’s Regional Bureau for Africa Ahunna Eziakonwa.
The assistant secretary announced that at a discussion held at the Startup Ethiopia Event, which explored what Timbuktu could mean for Ethiopia’s startup ecosystem, as well as what Ethiopia can offer to Timbuktu.
Continuous support for the growth trajectory and scaling of startups, access to larger specialized markets, absorption of local talent, and outsourcing talent beyond Ethiopia, along with de-risking early-stage capital and access to a broader investor pool, were among the points raised as benefits of joining the initiative during the discussion.
The Timbuktu Initiative, launched in January 2024, is an ambitious plan to mobilize and invest one billion dollars to nurture entrepreneurial ventures across Africa.
The Initiative represents a new model of development. It convenes key stakeholders to tackle multiple challenges simultaneously, from startup-friendly legislation and “world-class” development programs to mitigating investment risks. Initiatives like UniPods—University Innovation Pods—established across Africa are central to this approach.
According to the initial plan, Timbuktu operates in eight key African cities: Lagos, Cairo, Kigali, Nairobi, Cape Town, Casablanca, Dakar, and Accra, Ghana. Each privately managed hub focuses on a specific industry, such as Healthtech, Fintech, or Tourismtech.
However, the latest announcement suggested Addis Ababa could join the initiative.
“We believe that Ethiopia is really close to becoming the Ninth country of the Timbuktu initiative,” said the Secretary-General.
Joining this huge continental initiative allows Ethiopia to learn and grow its capital, said Director General of the Ethiopian Capital Market Authority, Brook Taye. And as the seat of the AU, having Timbuktu in Addis Ababa is an indicator that this is an African initiative, he added.
According to highlights from the discussion, UNDP requires some preliminary actions or reforms from the government.
Earlier this month, at the same Startup Ethiopia event, the Ethiopian government announced a comprehensive set of nine policy changes designed to bolster the nation’s startup ecosystem. These reforms address longstanding challenges faced by Ethiopian innovators, from basic office requirements to foreign exchange access.
The Timbuktu approach utilizes a “blended capital” model, combining commercial and catalytic funds. This aims to reduce private investor risk and foster a thriving startup environment.
The ambitious plan seeks to transform the lives of 100 million people and create 10 million dignified new jobs, Shega Media reported.