Micro-, Small and Medium-sized Enterprises (MSMEs) are cornerstones of Ethiopia’s socio-economic development. They contribute significantly to job creation, income generation, and inclusive and sustainable growth, particularly for youth and women. MSMEs in Ethiopia account for the most business entities in the country. They create the majority of new jobs and form a key part of Ethiopia’s industrialization and poverty reduction endeavors. They are essential for realizing Ethiopia’s Ten-Year Development Plan[1] and for accelerating progress toward the Sustainable Development Goals (SDGs), particularly in reducing poverty (SDG1), promoting inclusive growth (SDG 8), fostering innovation (SDG 9), and reducing inequality (SDG 10).
Generative Artificial Intelligence (gen AI) represents an unprecedented opportunity for MSMEs to transform their operations, expand market reach, increase revenue, enhance competitiveness, and drive innovations, and in the process, contribute to the achievement of the SDGs. Generative AI refers to technologies capable of creating new content and solutions, from marketing materials and product designs to data analysis and customer service automation. When applied effectively and responsively, generative AI can reduce operational costs, improve decision-making processes, expand market access, and support evidence-based planning for MSMEs. It can also play a crucial role in improving productivity in economic sectors vital to Ethiopia’s economy such as agriculture, manufacturing and services.
Realizing these opportunities requires targeted capacity building to MSME entrepreneurs and an enabling policy environment. Policymakers and MSME entrepreneurs often lack awareness of gen AI’s potential. Moreover, they face technological barriers that include high initial setup costs, unreliable digital infrastructure, and a general lack of technological expertise, in particular, how to utilize and co-create gen AI tools. This workshop aims to strengthen the capacity of MSMEs, policymakers, and other stakeholders to understand and apply gen AI solutions for inclusive and sustainable economic transformation. Through a combination of hands-on training, knowledge exchange, and dialogue between policymakers and MSME entrepreneurs, the workshop aims to explore and identify practical actions and policy recommendations that facilitate the adoption of gen AI among MSMEs in the country.
