In a world increasingly focused on harnessing technology to bridge economic divides, WIDU.Africa stands out as an innovative platform transforming how diaspora communities contribute to the development of their countries of origin. Launched in Ethiopia in August 2021, WIDU.Africa connects Ethiopian entrepreneurs with members of the African diaspora in Europe, creating a collaborative framework that transcends the traditional model of remittances.
Addressing Challenges with a New Approach
Ethiopia’s entrepreneurial ecosystem is ripe with potential, yet many small businesses struggle to secure the financial and strategic resources needed to grow. According to the World Bank, diaspora communities send billions in remittances annually, but only a small fraction is directed toward investments in productive ventures. WIDU.Africa seeks to address this gap by channeling these funds into entrepreneurial projects while providing business coaching to ensure sustainability.
The platform that is financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, combines financial grants with professional mentorship. This dual approach aims to create jobs, increase incomes, and foster economic resilience—a mission aligned with the Africa-Europe Joint Vision for 2030.
How It Works
WIDU’s model hinges on a co-investment structure. Entrepreneurs and diaspora donors register on the platform and jointly commit funding to a proposed business project. For every euro invested by the pair, WIDU matches the investment, offering grants ranging from €250 to €2,500. The program’s focus on transparency and accountability is evident in its requirement for detailed investment plans and proof of spending, ensuring funds are used effectively.
What sets WIDU apart is its integration of coaching services. Entrepreneurs receive tailored guidance from local partners to refine their business strategies, improve operations, and manage finances. This mentorship addresses a critical gap often overlooked by traditional funding models: the need for operational expertise to complement financial support.
Measurable Impact
Since its launch in Ethiopia, WIDU.Africa has supported about 400 small businesses, contributing to the creation and sustaining of 900jobs—64% of which are held by women. This emphasis on gender inclusivity aligns with global development goals and underscores the platform’s commitment to empowering underrepresented groups in the entrepreneurial landscape.
These results are not limited to Ethiopia. Across six African countries, including Ghana, Kenya, and Cameroon, WIDU has facilitated over 7,000 business projects since its inception in 2019, mobilizing millions of euros in combined private and grant investments.
Success Stories from Ethiopia
The impact of WIDU is best illustrated through individual success stories. Take Lula Design, a small sewing business in Addis Ababa. With a WIDU grant, owner Azeb Temesgen expanded her operations, purchasing new equipment and hiring skilled staff. This growth not only improved her income but also contributed to job creation in her community.
Another example is Beta Blockers PLC, a social enterprise addressing child malnutrition through fortified crackers. With the help of WIDU, the founders acquired essential equipment, scaled production, and created four new jobs. These stories highlight the diverse sectors and challenges WIDU addresses, from fashion and food security to renewable energy and education.
Beyond Funding: Building a Digital Ecosystem
WIDU’s impact extends beyond direct financial support. Its digital platform promotes inclusion, scalability, and efficiency, enabling entrepreneurs and donors to collaborate seamlessly. The platform’s data-driven approach ensures that resources are allocated effectively, while its user-friendly interface encourages broader participation from both the diaspora and local entrepreneurs.
WIDU has also demonstrated adaptability by launching thematic funding calls tailored to pressing societal needs. For instance, Ethiopia’s #FoodSecurity initiative supported sustainable agricultural projects, underscoring the platform’s role in addressing critical challenges through targeted interventions.
The Role of the Ethiopian Diaspora
A key strength of WIDU is its reliance on the Ethiopian diaspora as both funders and mentors. By involving the diaspora in project selection and development, WIDU leverages not just financial contributions but also the expertise and networks of individuals with a deep understanding of both local and global markets. This model creates a feedback loop of knowledge transfer, enhancing the success rate of funded projects.
The Road Ahead
As WIDU.Africa scales its operations, its potential to reshape Ethiopia’s entrepreneurial landscape is immense. By combining financial support with strategic mentorship, the platform offers a replicable model for leveraging diaspora contributions to drive sustainable economic development.
With plans to expand its reach and refine its approach, WIDU.Africa is well-positioned to continue fostering innovation, creating jobs, and empowering communities across Ethiopia and beyond. For Ethiopian entrepreneurs and their diaspora supporters, WIDU represents more than a funding opportunity—it’s a platform for shared growth and long-term impact.
For more details, visit WIDU.Africa.
