If you asked Addis Alemayehou where to put money between Kenya and Ethiopia, his answer would depend on the size of the cheque. The seasoned entrepreneur, who has invested in both markets, believes scale is everything.
“If you gave me Sh100 million, I would bet it on Ethiopia. You can call me biased, but I’d rather go for a market of 130 million people than one of 50 million or 60 million people. The potential for growth is much higher. Ethiopia’s economy has been growing faster than Kenya’s. We caught up, and now we’re ahead. A giant has awakened next door, and it’s not going back to sleep. For Sh10 million, however, I’d put that in Kenya, it’s competitive, but with the right niche, you’ll still thrive,” he tells BDLife.
The 54-year-old is the chairman of Kazana Group, a holding company that invests in and supports African startups across various sectors, including marketing, fintech, and technology. He also owns Gursha Ethiopian Kitchen in Nairobi’s Westlands and Gigiri.
He believes Ethiopia is the next big thing for Kenyan investors, thanks to its population.
“We’re talking about over 130 million people today,” he says. “Every year, we add more than three million. In 14 years, that means 45 million more Ethiopians. Do the math: 45 million is about 2/3 of Kenya’s population right now. Imagine a new Kenya being added to Ethiopia in just over a decade.”
That statistic alone, Mr Alemayehou insists, should jolt Kenyan entrepreneurs.
“If you capture even one percent of Addis and its surrounding markets, that’s a million consumers. Whatever you’re selling, bread, insurance, fintech, healthcare, if one percent of the population buys from you, you are already successful. Businesses go where the people are, and the people are in Ethiopia; it is literally the last frontier.”
He ventured into entrepreneurship at just 19. He started with owning prime real estate in Canada, where he was studying. He grew up in Nairobi before leaving as a teenager to study in the US, and later joined his family in Canada.
He describes himself as, “born in Addis Ababa, made in Kenya.” He says his father, once an Ethiopian Airlines mechanic, moved the family to Nairobi in the early 1980s after landing a job with the Desert Locust Control Organisation.
From an early age, he says he knew he wanted to establish a chain of businesses in Africa across various industries.
Over the years, he has grown his understanding and expertise of doing business in the region, going as far as advising key clients such as Safaricom and Aliko Dangote in Ethiopia.
Canada offered him opportunities, but never a true home to root his budding enterprise.
“Everywhere I went, people asked, ‘Where are you from?’ It was their way of saying, ‘you’re not from here.’ Deep down, I always knew I’d return to Africa. The future was here, not there,” he says.
When he returned in the early 2000s, Mr Alemayehou was struck by how far Kenya had advanced compared to Ethiopia, which had endured nearly two decades of communism.
“Kenya was 25 to 30 years ahead in many sectors. For me, Kenya became a laboratory. I copied, localised, and pasted ideas into Ethiopia,” the serial entrepreneur tells the BDLife.
That became the blueprint for his career. When he wanted to start a radio station in Addis Ababa, he sought advice from the late billionaire businessman Chris Kirubi, shadowed him at Capital FM in Nairobi, and went on to launch Afro FM, Ethiopia’s first English-language radio station.
Addis Alemayehou poses for a picture after the interview on September 26, 2025.
Photo credit: Francis Nderitu | Nation Media Group
“What worked in Kenya, I tried in Addis, but always adapted to the culture. You can’t just cut and paste,” he says.
New opportunities
Years have passed since he took lessons from Mr Kirubi and replicated in Ethiopia, but he sees the same opportunities today.
“Walk into any Nairobi supermarket and see dozens of local brands competing in every aisle. In Ethiopia, competition is far less intense. If you bring the right product, localise it, and scale it, you can own entire categories.”
He calls Kenya “Africa for beginners,” thanks to its relative transparency and functioning systems.
“In Kenya, you know the licences you need, you can pay your taxes, move money, and hire talent. The infrastructure and banking work. People complain, but I tell them, go try doing business elsewhere, then you’ll come back grateful. And Kenyans don’t realise how resourceful and innovative they are. If I had to pick a business partner anywhere on the continent, I’d pick a Kenyan. You understand the formula.”
That is why he insists Kenyans are uniquely placed to seize Ethiopia’s opening. “We are cousins. When you come to Addis, you don’t feel like a foreigner, except maybe when we’re racing each other in marathons,” he jokes.
Not for the impatient
Even though he sees Ethiopia as the next investment hotspot, he warns that it is not for the impatient.
“Investors hear 120 million potential buyers and think it’s instant riches. But this is a medium to long-term play. You must respect the culture, find a local partner, and do your homework. Leave your stereotypes at the airport.”
He points to the Dutch as a model of success. “They come quietly, study, hire the right local teams, and are okay with learning through mistakes. That patience pays. Today, they are thriving.”
For most prospecting investors in Ethiopia, the biggest historical barrier has been repatriating profits, but it has been easing.
“That was always the first question they asked. Can I take my money out? Last year, Ethiopia floated its currency for the first time. I watched clients who had waited a decade finally repatriate funds,” he says.
On barriers to entry in Ethiopia, Mr Alemayehou says they are not as rigid as many assume.
“Everything is open to everybody. There are some specifications around different sectors. In media and communications, for instance, I believe there’s a percentage cap, and in banking as well, if you want to buy into a local entity. But if you want to start your own bank, there’s no cap. Equity and KCB are already there, looking at whether they want to start their own from scratch or buy into a local entity. The discretion lies with the investor on which path to follow.”
When it comes to returns, for anyone weighing whether to invest in Ethiopia or Kenya, he offers firm reassurance.
“Probably the highest in the region, mainly because the challenge with Ethiopia has never been ROI (return on investment). The challenge was always getting your funds out. But nobody ever challenged Ethiopia’s ROI. Whatever sector you’re getting into in Kenya, you’re competing unless it’s something very unique. In Ethiopia, almost every sector is untouched. Even if there are one or two players, there’s still room to grow given the size of the population.”
His business in Kenya
Mr Alemayehou has invested in Kenya. He owns an Ethiopian restaurant and also has advice for foreigners looking to invest in Kenya’s hospitality sector.
“You have to do your research and figure out exactly where your niche is. I picked Ethiopian food because I felt there was space. Food has now become international cuisine, like Chinese or Indian. For any investor, the Kenyan market still has room to grow as long as you bring a unique product or service. The challenge, of course, has been taxes going up and incomes going down, but that’s a market-wide challenge, not just for foreign investors. The biggest thing in hospitality is finding human resources to hire and being able to source consistently. That’s where Kenya shines, talent is abundant.”
For many entrepreneurs, managing businesses across multiple countries comes with its own headaches. Mr Alemayehou says success comes down to the people you hire.
“My Kenyan businesses are run by Kenyans, and I have Kenyans working in my Ethiopian businesses. The key is picking the right talent. African talent is resourceful, given the opportunities. When it comes to Ethiopia, people think talent only exists in Addis, but we have 46 public universities and over 2.3 million graduates coming out every year. The pool of talent is huge; it’s about the systems you put in place to attract and train the best.”
He points to his restaurants as an example. “We’ve employed more than 50 Kenyans in under a year. That’s what makes me proud. Not turnover, not revenue, but jobs. When people walk in, taste Ethiopian food, sip the coffee, and feel the vibe, it’s not just a business. It’s a cultural bridge.”
Diversity of opportunities
He is however, quick to underline that it’s not only the size of the market but also the diversity of opportunities that matters.
“Fintech is wide open. You Kenyans have been doing mobile money for 15 years. We’re just opening telecoms and financial services. Hospitality is another. Every major hotel in the Middle East has Kenyan staff. Ethiopia needs that expertise. And the creative economy is ripe. Addis is connected to 144 destinations directly by air, and we can host global concerts, art fairs, and festivals. The venues and the youth culture are here.”
Away from the talk of markets and margins, Mr Alemayehou is most animated when discussing jobs.
“I turned 50 four years ago. That’s a wake-up call. I told my team: from now on, every venture must make commercial sense and must create jobs. That’s non-negotiable.”
For Mr Alemayehou, the strongest signal came from Nigeria’s Aliko Dangote: “If Africa’s richest man is investing another $2.5 billion, what excuse do you have?”
For Kenyan businesses weighing their options, his message has an urgent tone to it: act now. “Markets reward early movers. In 14 years, Ethiopia will add another 45 million people. Companies from Turkey, India, China, the Netherlands—they’re already there. The question is, will Kenyans, with all their natural advantages, seize the opportunity?”
He draws a map in the air as he lands his point home. “Nairobi to Addis is an hour and a half by plane, with multiple flights a day. Logistically, Kenya should be our number one business partner. But opportunity doesn’t wait forever.”
