ICT Innovations, entrepreneurship and hubs in East Africa: The case of Ethiopia

Abstract

This research set out to assess the state of ICT innovation in Ethiopia, then to profile and analyse the two Ethiopian ICT hubs (iceaddis and xHub). It also assessed the challenges to ICT innovation in Ethiopia and recommend solutions. The research used a range of qualitative research methods, which combined semi-structured interviews, participant observation, SWOT analysis and a review of secondary materials. The findings of the research have revealed that the state and nature of ICT innovation in Ethiopia can be described as ‘low scale or household’ type of innovation engaged in the modification or improvement of foreign products or processes rather than inventive innovations. Nevertheless, this is changing as more and more advanced industrial ICT companies are emerging such as iCog Labs, which work in the areas of cloud computing and Artificial Intelligence. Most of the innovations are in the areas of entertainment, information, financial and app software development. Ethiopian ICT hubs iceaddis and xHub are filling the innovation gap by offering a working space, training, investment and mentorship until the startups mature despite some internal weaknesses and possible threats. Infrastructure (connectivity) was the biggest challenge to innovation followed by government policies, investment, societal and educational shortcomings.