Ethiopia launches $25.56Mn flagship BPO hub for global services
ADDIS ABABA, Ethiopia — Ethiopian Investment Holdings (EIH) launched a US$25.56 million business process outsourcing (BPO) project, signaling a major push to position Ethiopia as a competitive hub for global services.
According to a report from StockMarket.et, the announcement was made at Elevate Africa 2026, which highlights the country’s efforts to attract foreign investment, generate export revenue, and diversify its economy beyond traditional sectors such as manufacturing and agriculture.
Ethiopia’s $25.5Mn investment in global BPO services
The newly launched BPO initiative is considered a flagship investment aligned with EIH’s broader mandate to strengthen state-owned enterprises and support Ethiopia’s economic transformation.
“The $25.56 million investment signals a strategic pivot toward the global services industry, particularly outsourcing operations such as customer support, back-office processing, IT-enabled services, and remote professional services,” the report said.
EIH’s Chief Executive Officer (CEO), Brook Taye, emphasized that Ethiopia’s expanding young talent pool, coupled with improving digital infrastructure and competitive labor costs, provides a strong foundation for scaling BPO operations.
“These factors provide a strong foundation for scaling BPO operations,” the report noted, adding that the sector holds high potential for job creation, export revenue generation, skills transfer, and integration into global value chains.
The program’s objective, in alignment with existing macroeconomic and structural reforms, focuses on modernizing the Ethiopian economy and improving the country’s global competitiveness.
EIH develops export-oriented services that create new foreign currency income sources while they develop opportunities in all sectors of Ethiopia, which extend beyond its traditional industrial and agricultural sectors.
Driving job creation and digital skills in Ethiopia
The BPO project, with its goal of creating thousands of new customer support, IT service, and remote professional positions, will benefit urban youth through their direct employment opportunities.
The project can also act as a training ground for digital and professional skills, helping to build a workforce capable of servicing international clients and participating in global outsourcing networks.
“The BPO initiative is positioned as a model for leveraging human capital to generate sustainable growth and foreign currency earnings,” the report added, highlighting the broader socio-economic impact of the project.
Ethiopia demonstrates its readiness to compete with existing outsourcing centers in Asia, Europe, and other African regions through its gradual opening of essential sectors for private and international investment, with its implementation of regulatory changes.
Ethiopia’s emerging role as a global outsourcing destination
Ethiopia serves as an optimal outsourcing destination for international companies as it offers inexpensive labor rates and its strategic position as a central location within East Africa.
The move could position Ethiopia as a gateway for international companies looking to tap into African markets while benefiting from a highly trainable and English-proficient workforce.
Ethiopia’s BPO project represents a strategic economic shift as it will create long-term benefits through human capital development, digital strength, and international business partnerships.
