In recent years, the government has taken large steps forward to support entrepreneurship in information and communications technology (ICT), yet it has largely underestimated the challenge of suddenly developing a country with only 1% internet penetration.
Take, for example, the new $250 million technology park the government has decided to build, Ethio ICT. Historically, the country’s GDP has been directly correlated with rainfall, as agriculture still accounts for the majority (46.3%) of the country’s GDP and 80% of its employment.
Yet, despite abysmal internet penetration and mobile penetration below 20%, the government is insisting upon a tech park.
A few years back, the government also decided that 70% of students must study engineering. The country’s growth will depend on it, they reasoned, forgetting that students need jobs when they graduate.
As a quick fix, the leadership then decided that entrepreneurship would solve the problem for these graduates (the government now says 10% of graduates should be entrepreneurs, a friend told me), forgetting that the barriers to entrepreneurship, especially in ICT, remain enormous.
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