The Prime Minister of Ethiopia, Dr. Abiy Ahmed, recently addressed the G20, emphasizing that Africa’s economic rise is already underway and marks the beginning of a new development pathway. He stated, “The compact with Africa was built on a simple yet transformative idea: when African nations commit to reform and the G20 and other international partners commit to supporting these efforts with capital, technologies, and expertise, a new development pathway becomes possible.”

His message prompted me to reflect on what has been achieved so far and to explore this statement from both an Ethiopian and a broader African perspective. In particular, it inspired an examination of how this vision aligns with homegrown digital development, the emergence of skilled local talent, and the continent’s growing capacity in areas such as fintech, cybersecurity, digital infrastructure, policy reform, artificial intelligence, and startup innovation. Africa’s young population and future workforce remain central to this transformation, forming the “digital silk lines” that will connect the continent to new economic opportunities and global value chains.

Africa stands at a defining moment in its development story. With a young and rapidly growing population, a rising digital culture, and expanding opportunities for innovation, the continent is uniquely positioned to leapfrog traditional growth models. Ethiopia, in particular, is emerging as a promising frontier for homegrown digital transformation—supported by national reforms, public–private partnerships, and the resilience of a skilled and ambitious workforce. Building a new development pathway for Ethiopia and Africa requires a deliberate fusion of capital, technology, and expertise. When these forces converge, they can unlock unprecedented opportunities and reshape the continent’s future.

Capital is the first essential ingredient. For decades, African innovation has been constrained not by ideas, but by the limited flow of investment. Today, however, the landscape is shifting. Venture capital interest in Africa is rising, development finance institutions are investing in digital initiatives, and diaspora communities are increasingly channeling resources back home. Ethiopia’s ongoing reforms, the opening of its financial sector, and the establishment of a capital market introduce new prospects for investment. Yet unlocking the full potential of digital growth requires capital to reach innovators consistently and efficiently. When African entrepreneurs have access to the funding they need, they build scalable solutions for financial inclusion, agriculture, logistics, and the knowledge economy—solutions designed for African realities and capable of competing globally.

Technology forms the second pillar of Africa’s new development pathway. Across the continent, fintech is transforming how people save, pay, and invest; cybersecurity is becoming a national priority as economies digitize; and digital infrastructure—from fiber optic networks to data centers and 5G services—is expanding at an unprecedented rate. Ethiopia’s own digital reforms, including national ID integration, digital payments, e-government services, and cloud adoption, signal a country determined to build the foundations of a modern digital economy. At the same time, artificial intelligence presents a transformative opportunity for Africa. With its youthful population, growing digital datasets, and emerging research communities, the continent can harness AI to revolutionize agriculture, healthcare, education, and public services. Ethiopia has already demonstrated its ambition through AI research institutes, policy development, and tech talent programs, signaling a future where AI is not merely imported—but produced locally and applied to national priorities.

Expertise completes the triad of progress. Africa’s greatest asset is its youth: nearly 70 percent of the population is under the age of 30. This demographic advantage, if converted into digital competence, has the power to redefine the continent’s place in the world economy. Ethiopia and Africa as a whole must therefore invest heavily in digital skills—software engineering, cloud computing, cybersecurity, artificial intelligence, DevOps, and product design—ensuring that both basic digital literacy and advanced technical training become accessible to millions. Universities must align their programs with industry needs; apprenticeship and externship opportunities must connect students with real workplaces; and global certifications must equip young professionals with internationally recognized expertise. When young Africans gain world-class digital skills, they do more than strengthen local economies—they participate directly in shaping global innovation.

A forward-looking digital future also demands policy systems that encourage experimentation, protect users, and fuel innovation. Ethiopia’s recent reforms—from the Startup Proclamation to cybersecurity regulations, from digital trade frameworks to telecom liberalization—demonstrate a recognition that policy is the scaffolding on which digital economies are built. Across Africa, strong regulatory systems can nurture startups, attract international investors, promote digital inclusion, and secure cyberspace. Progressive policies also allow governments to digitize their own services, increasing transparency, reducing inefficiencies, and strengthening public trust. A digitally capable state becomes an accelerant for a digitally capable nation.

As capital begins to flow, technology evolves, and expertise strengthens, Africa’s startup ecosystem becomes a crucial engine of development. New ventures in fintech, logistics, agritech, health tech, edtech, and AI are reshaping markets and solving deep-rooted challenges. For these startups to grow into national and continental champions, they need supportive ecosystems: incubators, accelerators, innovation hubs, digital sandboxes, procurement opportunities, and cross-border market access. Ethiopia and Africa must cultivate environments where innovators can test ideas, attract investment, and scale solutions beyond local borders. A thriving startup culture not only drives economic growth but also inspires the next generation of builders and problem-solvers.

Underlying all this progress is a new type of connectivity—a set of digital “silk lines” that link people, ideas, services, and opportunities across Africa and beyond. These are not the trade routes of the past, but modern digital pathways shaped by cloud platforms, mobile technology, satellite connectivity, talent mobility, and cross-border digital commerce. Ethiopia is increasingly positioned to become part of these emerging digital corridors, exporting skilled talent, enabling outsourcing services, and contributing to global innovation value chains. These interconnected digital lines have the power to shift Africa’s role in the global economy from consumer to creator, from follower to leader.

The creation of a new development pathway for Ethiopia and Africa rests on a single powerful truth: Africa’s digital future will be built by Africans themselves. With capital to fuel innovation, technology to power transformation, and expertise to sustain growth, the continent is poised to redefine its trajectory. The young population is its greatest strength, the growing digital ecosystem its launchpad, and the spirit of entrepreneurship its driving force. If governments, businesses, innovators, and global partners continue to align their efforts, Africa can build a digital economy that is resilient, competitive, and transformative—one that not only meets today’s challenges but shapes the technological future of tomorrow.

Africa’s digital renaissance is not a distant aspiration. It is unfolding now, powered by ambition, strengthened by reform, and led by a new generation ready to create a future worthy of their potential.