For many years, Ethiopia’s name rarely appeared in conversations about Africa’s tech powerhouses. While countries like Nigeria, Kenya, and South Africa claimed the spotlight, Ethiopia quietly worked behind the scenes, growing talent, improving infrastructure, and planting digital seeds.
Today, those seeds are beginning to sprout.
A new wave of developers, startups, and investors is rising fast in Addis Ababa and beyond. One startup, in particular, is leading the charge: Better Auth. But it’s only the beginning of what’s shaping up to be Ethiopia’s digital breakout.
In late 2024, Bereket Engida, a self-taught programmer in Ethiopia, launched an open-source authentication library called Better Auth, built entirely from his bedroom. Within months, it caught the attention of developers worldwide.
By 2025, Better Auth had:
- Surpassed 150,000+ weekly downloads
- Earned 15,000+ GitHub stars
- Attracted a fast-growing global dev community
- Secured $5 million in seed funding from Y Combinator and other top investors
So what is Better Auth?
It’s a TypeScript-based authentication framework that helps developers add everything from simple login pages to advanced team-based access controls—without sending user data to third-party providers. It’s plug-and-play, fully self-hosted, and perfect for startups that need flexibility and control.
“People love the product,” Bereket said.
“But what matters even more is what it represents — proof that a global developer tool can come out of Ethiopia.”
A Market Ready to Grow: The Numbers Behind Ethiopia’s Tech Rise
According to Reports and industry reports:
- The IT services market in Ethiopia is expected to reach US $2.44 billion in 2025, with a projected annual growth rate of ~9.7%, growing to US $3.53 billion by 2029 ( addisfortune.news )
- Although Statista does not list “digital investment platforms” figures directly for Ethiopia, mobile data revenue is projected to reach US $639 million in 2025, growing at ~7.2% annually to reach US $844 million by 2029 ( statista.com).
These figures indicate strong demand for digital services, including investment platforms.
- Ethiopia’s population in early 2025 reached approximately 134 million, with a median age of 19.1, and over half the population under 18 ( datareportal.com).
- There were approximately 85.4 million mobile connections in Ethiopia in early 2025—around 63.8% of the population ( datareportal.com).
- Since 2019, 85+ startups in Ethiopia have raised a combined US $95 million in venture capital
- Early-stage startup funding in Addis Ababa alone reached US $8.1 million during the second half of 2022–2024, and early-stage funding growth was rated 10/10 ( startupgenome.com).
All this is happening alongside public-sector pushes to build data centers, improve fiber connectivity, and roll out regulatory reforms for digital finance and startup registration.
What Investors Are Saying
Investors are no longer watching from the sidelines. They’re moving in.
Y Combinator’s investment in Better Auth shows that Ethiopia is not just a market to serve—it’s a source of innovation.
“Ethiopia is going to surprise a lot of people,” one angel investor shared.
“We’re starting to see developer tools, payment solutions, and infrastructure startups built with global potential.”
Already, Ethiopia is attracting capital to sectors like:
- Fintech (Chapa, HelloCash)
- Healthtech (Orbit Health)
- Edtech and talent (Gebeya)
- Infrastructure (Raxio, Wingu, Safaricom Ethiopia)
The combination of strong technical talent and growing demand is creating investor confidence and startup optimism.
Other Startups Fueling Ethiopia’s Tech Movement
Here are more examples of Ethiopia’s digital energy:
1. Chapa
Often called the “Stripe of Ethiopia,” Chapa is a payment gateway helping businesses go cashless.
2. Gebeya
A tech talent marketplace that trains and connects African developers to global jobs. Already raised over $4 million.
3. Orbit Health
Digitizing hospitals and patient records in Ethiopia’s healthcare system.
4. HelloCash
One of the earliest mobile money platforms, bringing digital finance to underserved areas.
5. Safaricom Ethiopia & Telebirr
With over 41 million users on Telebirr and a fast-growing M-Pesa launch, Ethiopia’s fintech space is accelerating.
Better Auth stands out not just because it’s technically impressive, but because of how it was built and where it came from. It’s a reminder that:
- Great products don’t only come from Silicon Valley.
- Open-source communities are borderless.
- One focused developer can build something world-class from anywhere.
As Bereket continues to build, he plans to add enterprise features, grow the team, and make Ethiopia a known name in developer circles across the globe.
Ethiopia’s tech rise is not a trend, it’s a transformation.
Fueled by a young, ambitious population and now backed by international investors, the country is quietly building its digital economy from the inside out.
Better Auth may be just one tool, but it’s become a beacon. It shows what’s possible when talent, timing, and trust meet, and it signals a future where Ethiopia becomes not just a user of global tech, but a creator of it.
