Ethiopias venture capital space is hopeful that the governments programme of financial liberalisation will encourage more regional companies and foreign investors to enter the Ethiopian market, which in turn could stimulate greater activity and stronger growth among the countrys own domestic startups.
Speaking to African Business from the GITEX Global conference in Dubai, Hilina Resom, founding partner of the Addis Ababa-based Kazana Fund, says that VCs interested in the Ethiopian market have previously faced a challenging regulatory environment that has stunted growth and complicated foreign investment.
Because the market has been closed for a very long time, most local startups are quite confined to Ethiopia as they have been prohibited from expanding outside the country, Resom explains.
Under current regulations, foreign investors also need to invest a minimum of 150,000 in Ethiopia, which has made it very hard for a lot of startups to secure funding.
However, these regulations are now being changed to create the foundation for money to easily flow in and support promising ideas, she adds.
