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About Us
Ethiopia Jobs Challenge Fund
What is the Ethiopia Jobs Challenge Fund for?
The Ethiopia Jobs Challenge Fund is financed by KfW and the Ethiopian government with the objective of assisting entrepreneurs in developing their start-up or existing operations towards a more sustainable path and to support Technical and Vocational Training (TVT), entrepreneurship centers, and other incubators that in turn assist business entrepreneurs in Ethiopia with a primary focus on employment opportunities for refugees and host communities.
Procurement Contract/Lot Name:
MoLS/TVET/BMZ 2014683621/NCB-05/2024
Ethiopia Jobs Challenge Fund Implementer
The Ministry of Labor and Skills (MoLS) working in cooperation with various relevant stakeholders are the implementers of the Challenge Fund and successful applicants will be provided grants by MoLS.
Challenge fund applicants
We welcome concept notes from business applicants under window 1 and window 2 and incubators and accelerators under window 3.
Mode of disbursement
Grant payments will be made in instalments and grantees will need to report satisfactorily on how monies have been spend before further payments are made.
First Round Achievements
The Ministry of Labor and Skills has officially announced the awarding of 19 selected grantees under Round 1 of the Challenge Fund competition. The finalists were selected across three funding windows supporting MSMEs, Technical and Vocational Training (TVT) institutions, and Federal Technical and Training Institutes (FTTIs).
The awarded projects span key growth sectors including manufacturing, green energy, digital solutions, agribusiness, and inclusive employment initiatives, all designed to generate sustainable job opportunities for refugees and host communities.
With financial support from KfW (German Development Bank), the Challenge Fund has been implemented to accelerate enterprise growth and expand decent employment opportunities in Addis Ababa. The program supports both startups and established businesses, as well as entrepreneurship and incubation centers that strengthen innovation ecosystems.
The first round of the Challenge Fund is expected to disburse grants amounting to approximately 380 thousand Euro (66 million ETB), contributing to the creation of meaningful employment opportunities. By investing in scalable and market-driven solutions, the Fund aims to promote economic inclusion while strengthening local value chains.
The Ministry extends its sincere appreciation to all stakeholders and the independent selection panel for conducting a transparent and rigorous evaluation process in full compliance with the established criteria.
While only 19 projects were selected in this round, the Ministry encourages all applicants to continue refining their innovative ideas for upcoming rounds of the Challenge Fund.
Second Round of Applications:
Exciting News for Future Applicants:
We are thrilled to share that the 2nd round of applications is now open. This presents another opportunity for passionate individuals and organizations to propose innovative projects that contribute job creation for refugees and host communities as well as to the advancement of vocational education and training.
Stay Informed:
Keep an eye on our website and social media. We will provide detailed information about the application process, eligibility criteria, and deadlines in due course.
We appreciate your patience and understanding throughout this process.
If you have any suggestions kindly drop in on the FAQ ( Ethiopia Jobs Challenge Fund) as it helps improve the content of the website. it will be highly appreciated
Frequently Asked Questions
Questions on the overall fund
A challenge fund is a competition for funding where applicants put forward proposals that align with the objectives of the challenge fund, in this case creating employment opportunities for refugees and host communities. Those applications that best fit the objectives of the fund are supported through grants.
Challenge funds make use of a two-stage application process with a short concept note as the first stage in the application process. Concepts are then shortlisted and applicants whose concepts have been shortlisted are asked to complete more detailed full applications. This ensures that applicants can see if their concepts fit the objectives of the fund before more detailed information is requested. It should be noted that having your concept shortlisted does not guarantee that your project will be funded.
The fund is divided into three separate funding windows in order to reach refugees and host communities through different routes, and to group similar types of applicants together in the competition for funding. The competition for funding is effectively divided into three competitions for funding, which allows for more effective comparison between competing applications for support.
Windows 1 and 2 target existing businesses that have the capacity and interest to create jobs for refugees and host communities.
Window 3 targets incubators, accelerators, and entrepreneurship centers that support refugees and host communities to establish businesses and support start-ups. The Ethiopia Jobs Challenge Fund can only contract with established legal entities. As such support to aspiring entrepreneurs and start-ups that are not yet properly registered needs to be provided by incubators, accelerators, and entrepreneurship centers that can help aspiring entrepreneurs establish their businesses.
Only businesses registered with the Addis Ababa City Administration are eligible to apply. See the detailed eligibility criteria for for all windows.
In order to apply for funding you must first register and complete the concept note form for the funding window you applying for.All windows are currently open to applicants and there are separate concept note forms for each funding window.
You must download the relevant concept note form, answer all the questions on the form, and then upload the completed form before the deadline of 6:00pm (12:00 in the evening local time) on May 31, 2024. Concept notes received after the deadline of 6:00pm (12:00 in the evening local time) on May 31, 2026 will be rejected.
We encourage you to register your interest in the fund so we can gauge demand across Windows 1, 2, and 3 ahead of the May 31, 2026 application deadline. By registering your interest, we can also reach you with an invitation to our second round webinar — where we'll explain how to fill in the concept note and share important updates about the Challenge Fund. You can also stay informed by visiting the Ethiopia Jobs Challenge Fund website, regardless of whether you register.
Yes. By registering your interest, we can also reach you with an invitation to our second round webinar — where we'll explain how to fill in the concept note and share important updates about the Challenge Fund.
Yes, we will reach out to each person who registers their interest using the email address they provided.
All applicants across all windows will be notified of their concept note outcomes at the same time. Shortlisted applicants will receive the necessary information and guidance to proceed to the next stage — the submission of a detailed business plan — with 6–8 weeks provided to complete it. Funding decisions will be announced thereafter.
We expect to run further funding rounds for windows 1 and 2 with opportunities to apply in 2025 and 2026 depending on the success of this first funding round.
Yes. Applicants that are unsuccessful can apply again if there are further funding rounds. However, applicants should evolve their concepts or propose different concepts in order to be more competitive if they reapply in further funding rounds.
You can only submit one concept note in an application round. If you submit several concept notes or submit one concept multiple times we will only assess the concept note submitted last. So if you submit a concept note before the deadline, but want to adjust your concept, you can make the adjustments and resubmit and we will assess the most recent submission.
Second round application is open for all windows and the deadline is extended to May 31, 2026.
On the left of this page there is a box where you can ask additional questions. In order to maintain fairness and transparency in the Challenge Fund, answers to additional questions will be published on this website so that all potential applicants can see the questions and the answers. If you have a question that is very specific to your business you can raise this question with us, and the question and answer that we publish will be ‘generalised’ so that we do not reveal any sensitive or confidential information about your business that may be included in your question.
At the concept note stage we will respond to questions in this way and publish additional questions and answers on the website periodically leading up to the concept note submission deadline date. We will not enter into direct discussions with potential applicants at the concept note stage.
Once concepts are shortlisted we will be in direct contact with applicants and will provide more detailed guidance and support to applicants as they develop their full applications.
No, a government vocational training institution may not apply for Window II. Note should be taken that Window I and II applicants have to be business enterprises to comply with the specified eligibility criteria.
Yes, valid Trade license is a minimum eligibility criterion to apply for the CF. Businesses which are in operation but don't have license for various reasons and will not secure them during the application process to the CF will not be eligible for funding. We hope there will be further rounds of funding and business that do not yet have license in place now but will secure them in the future can apply in the hoped for coming rounds of the CF. These will be posted on this website.
Business name is simply how your currently ongoing business is known in the market and its main delivery to its end users or customers. For instance, XYZ wood and Metal work, ABC food products retail Shop, XXX Men Barbery, YYY delivery service etc.
No, NGOs and faith-based organizations cannot apply directly to the Jobs Challenge Fund for a Window 1 or 2 grant. Applications to the Fund under Window 1 and 2 must be led by a registered company, but NGOs and faith-based organizations may be part of a registered company-led application. For example, a company may need assistance from an NGO or faith-based organization to train refugees in specific areas, such as hospitality. In such circumstances, the company must apply to the Jobs Challenge Fund and, as part of its application, should include the relevant costs of the NGO or faith-based organization with which it plans to work.
No, individuals cannot apply for funding only business can apply. But if the person who heads an NGO has registered his or her own business such a business can apply.
Yes. All interested parties are encouraged to register their interest in the Fund, including applicants who have not yet completed the registration process for their business, interested individuals, and NGOs and faith-based organizations. However, to be eligible for support, applicants must be a business and have the appropriate licenses. Applicants may submit concept notes while the business registration process is being completed, but the business must be properly incorporated to receive a grant. In terms of the timeline for current applications, applicants must be able to demonstrate that their company is properly registered by the application date.
Please refer to the FAQ page of the website under the title “Questions on the overall fund” subtitled as number 4 which explains “how do I apply for funding”.
There is no need to contact MoLS directly in order to apply to the Jobs Challenge Fund. All applications are online and through the Jobs Challenge Fund website. Based on your preference first download forms for window 1, window 2 or window 3, complete and then upload it before the deadline. If your concept note is shortlisted among other competitors, you will be contacted for the next steps. Signing agreement with MoLS is the final stage of the CF process which will occur only with finalist (winning) challenge fund grantees.
Please follow the instructions for downloading and uploading the concept note forms in each window. The Steps are:
1st) download concept form for either window 1 or window 2 (based on your choice)
2nd) Save with file name in your desktop/laptop/tablet,
3rd) Fill and complete the concept note; make sure all updates are saved. Look at the guidance on the website and on the form itself as you complete the concept note form.
4th) Once you have completed the form and are ready to submit, go to the tvetcf.org website and click the upload icon either window 1 or window 2 (based on your choice)
5th) upon completing data such as name, email etc… click “choose file” under the title “registration form” where you have to select the file with your completed concept note.
6th) Once linked, make sure the name of the attached file which is the right one appears in the box “choose file.”
7th) Then click the “submit” icon which automatically sends the file to the system.
Finally, if the whole uploading process is successful, it appears the following message on the window :
“Submission is successful”
“Concept note has been submitted.”
Please note that the downloadable application form has a guideline at the end of the page which can provide you with explanations on terminologies and quick support on how to complete each question of the form.
The website also has a FAQ page so that you can refer to them and clear out any of your doubts when you apply for the challenge fund. If you still feel there are more questions to raise, ask your question by completing the box on the website where additional questions can be raised, send and the reply will be posted on the FAQ as soon as possible.
In addition, we will organize a webinar or zoom virtual meeting soon which will address many of your questions including explanations on how to fill the concept note.
Questions in the concept note forms of all windows have corresponding blank spaces designed to automatically limit when it reaches the maximum allowed number of words.
This challenge fund aims to create jobs for refugees and host communities, and is designed for businesses which are in operation substantiated by presenting valid trade licenses. This challenge fund will have a number of calls in the future and stay tuned by checking all updates on the website as long as you have plan to meet the eligibility requirements mainly possessing trade license.
Upon completing the two stage selection process, we will announce winning grantees and the number of winners are determined by the good quality and well-targeted concept note design and plan for implementation.
Please note the minimum eligibility criteria to apply for the Challenge fund competition.
Yes you are only expected to fill the table on the form based on your choice either window 1, window 2 or window 3. The next step if your concept note is shortlisted please refer on the FAQ page of the website under the title “Questions on the overall fund” subtitled as number 8 which explains “what are the next steps if my concept note is shortlisted”.
Yes: as long as you would be able to submit a separate concept note related to each entity as well as meet the CF eligibility criteria, mainly each concept note would be able to demonstrate how the proposed project will benefit refugees and host communities.
Round 2 FAQ
Questions specific to Window 1
Follow the "How to Apply" guide on the website.
The deadline is extended until May 30, 2026. Those who have already submitted a concept note can still review and resubmit their concept note.
Submitting a valid and renewed trade license is a mandatory requirement.
Submitting a valid and renewed trade license is a mandatory requirement.
The scope of this grant fund is only for businesses operating in Addis Ababa City Administration.
Yes, as long as you meet all specified requirements.
Questions specific to Window 2
If you can supply clear legal evidence that the business operating for more than 5 years under a trade name in your wife’s name has been incorporated into the new PLC you have established and you meet the other requirements for Window 2, you can apply for Window 2. If you cannot provide such evidence that the new PLC incorporates the previous business, we would advise that you apply for Window 1.
The scope of this grant fund is only for businesses operating in Addis Ababa City Administration.
May 31, 2026.
Questions specific to Window 3
Yes, as long as you meet the requirements specified for Window 3 and support refugees to start businesses or get employment.
See the link: Ethiopia Jobs Challenge Fund.
Round 1 FAQ
Questions specific to Window 1
Yes. If you are a well-established business or a larger business you can still apply for a grant of between 10,000 Euro and 20,000 Euro through window 1. We are seeking to achieve impact at scale and as such we have developed window 2 to target larger businesses with larger grants available between 20,000 Euro and 200,000 Euro. However, if a larger or a well established business has a proposed project that meets the criteria of creating jobs for refugees and host communities that requires a grant of between 10,000 Euro and 20,000 Euro they can apply to window 1.
No. Not under window 1. As we are targeting start-up and early stage businesses through window 1 we do not require a minimum turnover to apply. However, the applicant must have the capacity to implement the scale of project they are proposing for challenge fund support. For window 2 there is an annual sales or annual turnover requirement (see below).
Questions specific to Window 2
For larger and well established business applying to window 2 the grant applied for must not be larger than the annual sales or annual turnover of the business. For example if a business has annual turnover or annual sales of 5,000,000 BIRR the maximum grant they can apply for is 5,000,000 BIRR.
This requirement is there to ensure that applicants to window 2 propose projects that are aligned with the scale and maturity of their business.
The most recent year of trading for which you have a complete account should be used.
There are related statements on the FAQ page of the website under the title “Questions on the overall fund” mainly question number 5,6 and 11.
Generally, it is good that you have made the registration which shows an interest and this doesn’t hinder you from preparing a concept note for the window you finally choose. So if you have registered your interest in window 1 you can submit a concept note under window 2, and if you register your interest in window 2 you can submit a concept note under window 1. Please note that you can only submit one concept note in an application round. If you submit several concept notes or submit one concept multiple times we will only assess the concept note submitted last before the specified deadline.