The Italian Cooperation Agency in Ethiopia has identified economic development and job creation as priority objectives to support the country’s growth, establishing a dedicated Sector. Unemployment, particularly among young people, represents a major economic and social challenge, with over two million young people seeking employment each year. In this context, providing effective tools, such as vocational training, is essential to ensure sustainable and inclusive job opportunities. Furthermore, attracting private investment and fostering public-private partnerships to promote the development of small and medium-sized enterprises is crucial.
To address these challenges, AICS has structured its intervention in this Sector around three macro-thematic areas. The first aims to foster rural development by strengthening the agri-food system at all stages, “from farm to fork,” and to support entrepreneurship and SMEs, with a particular focus on producer cooperatives and their consortia, both in the agricultural sector and in light manufacturing.
The second area of intervention focuses on supporting technical, professional, and entrepreneurial training, with a specific focus on agribusiness and a particular focus on youth and women. Finally, the Sector works to strengthen private sector development, with a particular focus on small-scale manufacturing (particularly leather and textile processing), innovation, the creation of start-ups, and support for access to credit for SMEs.
Furthermore, the Sector’s priorities have incorporated the recommendations of the Ethiopian Plan for the Development of Innovation and Technology, known as Digital Ethiopia 2025, which focuses on building, organizing, and strengthening the digital infrastructure and data centers necessary for the country’s digitalization process. The Plan also includes research and personnel training to upgrade the skills of the Public Administration to new standards. A key element is the creation of a National Data Center, which will foster the development of a digital economy, improve access to public services, and open the banking system to international investors.
In this context, the Italian Cooperation is supporting Ethiopian institutions in building digital infrastructures that meet the digitization needs of both state services and private businesses. Furthermore, it promotes digital literacy programs to ensure transparency and accessibility to new digital services throughout the country. The Plan, supported by the sector, also includes a professional placement program for young people, who, after completing training, will be employed in data center management and providing digital services to the population.
