Improving Ethiopia’s Business Environment through e-Governance

19.06.2025

Three interlinked EU-funded initiatives—the BEIC project, the development of Ethiopia’s e-Government Strategy (2025–2029), and the National Business Portal - form a comprehensive e-Governance Support Package. Together, they aim to improve the Ease of Doing Business by enhancing public e-services, streamlining public-private dialogue, and enabling digital legislative consultations.

The EU’s e-Governance Support Package reflects a broader commitment to improving Ethiopia’s business environment and investment climate. It comprises three distinct but interlinked projects, each contributing to specific Ease of Doing Business (EoDB) indicators.

In 2018, the Government of Ethiopia launched a major reform initiative to open key sectors of the economy—aiming to stimulate domestic entrepreneurship and attract foreign investment. This led to the creation of the EoDB Reform Programme, with the Ministry of Innovation and Technology playing a central role.

A core focus of the reform has been supporting government institutions in developing interoperable e-government platforms and transactional portals to improve the delivery and efficiency of public e-services.

Objectives

The e-Governance Support Package aims to strengthen Ethiopia’s digital public service delivery and improve the business environment by supporting three interlinked initiatives:

  • The BEIC project (2021–2025) has the principal objective of equipping a range of public institutions with the tools needed to digitalise and integrate their customer service journeys. This includes enabling individuals and legal entities to register businesses in Ethiopia, ensuring that proposed legislation is accessible for public comment through e-consultation, and promoting digitalised public-private dialogue.
  • As a spin-off of the BEIC project, the EU funded expertise provision (2023–2025) to support the development of the e-Government Strategy and Business Enterprise Architecture 2025–2029. Endorsed by the National Digital Transformation Council, this policy document is pivotal in defining short-, medium-, and long-term priorities for establishing a robust e-governance framework for Ethiopia’s public services.
  • The development of the National Business Portal (2021–2025) supports smoother and more transparent interactions between businesses and local authorities (e.g., City Administrations) following business registration. A range of permits, including construction permits, can be obtained through the Portal. It is currently operational in Addis Ababa and will be expanded to Bahir Dar, Dire Dawa, and Adama.

Approach

Beyond technical outputs, the e-Governance Support Package has fostered a paradigm shift within public institutions - encouraging a customer-centric mindset and greater alignment of internal processes to meet user needs. This behavioural and institutional shift lays a strong foundation for scaling up similar digital governance initiatives.

The support package used a diverse and complementary mix of implementation modalities, including technical assistance, service contracts, and direct grant agreements with public institutions - ensuring flexibility, ownership, and sustained capacity-building across sectors.

Addis Ababa, Dire Dawa, Bahir Dar (National Business Portal)
€ 9,500,000
Ongoing
Multi-sector
e-governance, public services
European Union
Ministry of Innovation & Technology (MInT), Ministry of Justice (MoJ), Ministry of Trade and Regional Integration (MoTRI), Ministry of Revenues (MoR), EU Chamber in Ethiopia (EUROCHAM), Local chambers of commerce, the National Bank of Ethiopia (NBE) and r
GIZ international Services and McKinsey & Company (BEIC project), DT Global (e-Government Strategy), Ministry of Innovation & Technology (National Business Portal)