The Startup Proclamation No. 1396/2025 sets out the support below. Designation is the first step to access it.
01Proclamation Art. 23-25
The Startup Grant Program, set up under the Proclamation, gives direct capital support to designated startups.
Grant money is ring-fenced. It cannot be used for personal expenses, unrelated business activity or repaying personal or company debt.
02Proclamation Art. 26-27
The National Credit Guarantee Fund, supervised by the National Bank of Ethiopia, makes it easier to borrow from banks.
Designated startups, ecosystem builders and MSMEs can all benefit from it.
03Proclamation Art. 35
The Startup Fund of Funds is a commercial enterprise set up by the Government of Ethiopia together with the private sector to invest in startups.
Ethiopian Investment Holdings holds the government's share, and a private fund manager chosen through open competition runs the fund.
04Proclamation Art. 30
Dividend income earned during the designation period is exempt from income tax.
The Ministry confirms eligibility and sends it to the Ministry of Finance for approval.
05Proclamation Art. 33-34
Designated startups may import capital goods duty-free for their own operations. Ecosystem builders may do the same to set up or expand a facility.
Duties paid on inputs for capital goods made in Ethiopia are refunded by the Customs Commission.
06Proclamation Art. 31-32
A designated startup that makes a loss during its tax exemption period can carry that loss forward for three years after the exemption ends.
An investor who loses money on a designated startup can deduct the full loss and carry it forward for two years.
07Proclamation Art. 37
The Ministry may set up a regulatory sandbox where startups test new products, services and processes under its supervision.
A Ministry Directive sets the extra criteria and the way to apply.
Check the criteria for your stage, then apply online. The incentives open up once you are designated.