As the global economy pivots towards inclusive, technology-driven development, the role of Micro, Small and Medium Enterprises (MSMEs) has never been more vital. Speaking at the MSME Day Conclave in New Delhi on June 27, 2025, Amb Molalign Asfaw, Deputy Head of Mission at the Embassy of Ethiopia in India, underlined this very spirit, calling MSMEs the “true engines of innovation, employment, and equitable economic growth.”
He began by acknowledging the remarkable contributions of MSMEs worldwide, pointing out that they represent more than 90% of businesses globally, contribute over 60% of total employment, and account for nearly 40% of global GDP. “These are not merely small businesses—they are the beating heart of local economies,” he said. “They serve as a crucial bridge between innovation and implementation, and stand as engines for inclusive development.”
Amb Asfaw noted that in both developed and developing economies, MSMEs are often the first to adopt new technologies, generate employment in underserved regions, and create human-centred business models that contribute to long-term economic prosperity. “Their resilience and adaptability are unmatched,” he added.
Shifting focus to Ethiopia’s domestic landscape, Amb Asfaw offered insights into his country’s significant progress in leveraging MSMEs as instruments of national transformation. “Ethiopia, known as the ‘Land of Origins,’ presents a powerful example of how targeted support to the MSME sector can catalyse growth and structural reform,” he said.
In recent years, Ethiopia has rolled out an ambitious macroeconomic reform programme aimed at ensuring stability, stimulating private sector growth, and enhancing regional integration. Through streamlined regulatory reforms, large-scale infrastructure investments, and strong public-private partnerships, the country is fostering a business-friendly ecosystem attractive to both domestic and foreign investors.
“With abundant natural resources, a young and dynamic workforce, and Africa’s second-largest consumer market, Ethiopia presents a compelling case for investment,” he stated.
Ethiopia’s strategic location, supported by its flagship carrier—Ethiopian Airlines—positions the country as a vital gateway to Africa. “Ethiopian Airlines, the continent’s largest and fastest-growing carrier, connects Addis Ababa to over 136 international destinations, including six cities in India,” Amb Asfaw shared. “This global connectivity strengthens our status as a hub for trade, logistics, and export.”
He went on to highlight Ethiopia’s five priority sectors for investment under its home-grown economic reform agenda: agriculture, manufacturing, information and communication technology (ICT), mining, and tourism. “We are also welcoming investments in emerging areas such as energy, healthcare, education, logistics, transport, and finance,” he added. “At the heart of all this is our unwavering commitment to put the private sector at the centre of economic development.”
Amb Asfaw took a moment to reflect on the longstanding diplomatic and commercial ties between India and Ethiopia. “Our civilizational relationship spans over 2,000 years,” he remarked. “Ethiopia was the first African country to open its embassy in New Delhi after India’s independence. Today, India is our second-largest source of FDI, with more than 600 Indian companies operating in Ethiopia and a registered capital exceeding USD 5 billion.”
This enduring partnership, he emphasised, holds immense potential for expansion in the MSME sector, particularly as both countries look to enhance trade, innovation, and investment-led development.
Closing his address on a personal note, Amb Asfaw extended an open invitation to Indian business leaders and entrepreneurs to visit Ethiopia. “Come not only for trade or investment, but as global citizens. Ethiopia is more than a destination; it is the cradle of humankind. It belongs to all of us, regardless of nationality, religion, or ethnicity.”
“Everyone should visit Ethiopia at least once in their lifetime,” he said, “to see the birthplace of their ancestors, because we are the birthplace of every human being.”
With that, he invited attendees to watch a short video showcasing the beauty, culture, and opportunity that Ethiopia offers to the world. His message was clear: MSMEs can be the bridge between two historic nations, enabling not just commerce, but shared progress.
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