The Ministry of Innovation and Technology has signed a memorandum of understanding with the Japan International Cooperation Agency on a detailed plan for a project to build a startup ecosystem in Ethiopia. The agreement project will be implemented in the next three years. The startup development system aims to develop a strategy for internationalization, to produce startups and to expand them in international countries so that they can work together with investors. Minister of State for Innovation and Technology, Honorable Dr. Baisa, has stated that startups in Dada contribute significantly to economic growth by bringing out new products, modernizing services, and creating new jobs and resources. As startups face many obstacles and challenges on their growth journey, they pointed out that the eight key factors will play a significant role in providing special monitoring and support and streamlining the ecosystem. Representative of Japan International Cooperation Agency Satome Jun/Mr. Satome Jun stated that the Japanese government will start implementing the startup ecosystem development project in Kenya, Tanzania and Ethiopia by allocating manpower and budget. It has been pointed out that the Japanese government is providing a lot of support for the growth and expansion of Ethiopian startups through JICA, which will make the agreement stronger.