Ethiopia's Economic Reforms Boost SME Growth, Innovation

A view of Addis Ababa city.

ADDIS ABABA — Ethiopia's home-grown economic and macroeconomic reforms have fostered a supportive environment for Small and Medium Enterprises (SMEs), according to the Ethiopian Intellectual Property Authority (EIPA).

EIPA, in collaboration with the World Intellectual Property Organization (WIPO) and the Japan Patent Office (JPO), held a national intellectual property workshop yesterday to increase SMEs' awareness of innovation management and the importance of intellectual property (IP).

EIPA Director-General WolduYimsel highlighted that these economic reforms are paving the way for SMEs to play a more active role in Ethiopia's economic growth, although their current contribution to the GDP remains modest. "SMEs need to focus on building intangible assets, especially intellectual property, which is essential for enhancing competitiveness, increasing product value, creating jobs, and addressing financial hurdles," he said. The reforms, Woldu added, present SMEs with new opportunities to contribute to Ethiopia's development.

The workshop aimed to boost awareness and create a forum for discussing SME-related agendas and sharing experiences. Woldu pointed out that many developed countries, such as Japan, Taiwan, and South Korea, have grown their economies through strong SME sectors, with SMEs making substantial contributions to GDP and job creation.

WIPO's Division for AfricaActing Director Loretta Aseidustressed that SMEs are crucial for driving Ethiopia's economic growth through innovation and creativity. She cited ILO data indicating that SMEs employ over two-thirds of the global workforce and play a major role in GDP contributions, poverty reduction, and promoting equality by creating productive, decent employment.

Despite their potential, many SMEs face significant challenges. Aseidu underscored the importance of intellectual property in fostering growth and providing a competitive edge for SMEs. "Intellectual property rights-such as patents, trademarks, and copyrights-offer a means of protecting innovations, attracting investment, and expanding market access both locally and globally," she said. "Through IP, SMEs can turn knowledge and creativity into tangible economic assets that support business transformation."

The workshop also served as an avenue to learn from international best practices, with Aseidu pointing out that countries like Japan have strengthened their innovation ecosystems by focusing on IP development for SMEs.

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