Despite offering attractive conditions for foreign investment, a combination of structural and institutional barriers often prevent developing countries from realising their full potential. Yonas Alemu describes the obstacles he overcame to establish a grain-based food producing company in Ethiopia, supporting local farmers and talent in the process.
In this episode of VoxDevTalks, host Tim Phillips speaks with Yonas Alemu, founder and CEO of Lovegrass Ethiopia, about his experiences building a food manufacturing business in Ethiopia. This wide-ranging discussion covers Alemu's journey, the persistence of narratives about Africa, and overcoming the challenges to entrepreneurship in Ethiopia.
Ethiopia’s untapped potential and the rise of teff
Ethiopia is a country rich in natural resources, cultural heritage, and agricultural diversity, yet much of its economic potential remains underutilised. One such resource is teff (also known as lovegrass): a tiny, gluten-free grain that has been a dietary staple in Ethiopia for millennia. Despite its high nutritional value and the growing global interest in alternative grains, teff has not been widely commercialised beyond traditional uses.
Alemu saw the global market’s growing appetite for ancient grains, such as quinoa, and recognised that teff could play a similar role internationally. However, a lack of industrial infrastructure, coupled with foreign patent claims on teff-based products, had previously stifled local innovation. This led Alemu to return to Ethiopia to build Lovegrass, a company focused on processing teff into globally competitive food products such as pasta and breakfast cereals.
Overcoming structural and institutional barriers
Setting up a business in Ethiopia came with major bureaucratic and logistical challenges. Land acquisition, permits, and the slow pace of government processes made it difficult to get started.
“You have to convince the people in authority that [you are] not lying… [that you are] really trying to do this. So they did trust me. They gave me the land. But it took a long time. Took me around a year and a half to actually start going.”
Despite these hurdles, Alemu was determined. He laid out three foundational principles for Lovegrass: (1) produce internationally competitive food products in Ethiopia, (2) address issues of malnutrition and rural poverty through inclusive growth, and (3) supporting the farming community.
COVID-19 posed an additional setback, hitting Ethiopia just as Lovegrass was ready to begin production. Still, with resilience and careful planning, the company managed to navigate the crisis and begin exporting its award-winning products.
Rethinking aid: From charity to investment
Alemu presents a powerful critique of how international aid has shaped perceptions of Africa. He refers specifically to the long-lasting impact of the 1980s Live Aid movement, which, while well-intentioned, framed Ethiopia and much of sub-Saharan Africa as helpless and dependent.
“Nobody sees Ethiopia as a place to invest, a place that can grow. Nobody thinks of the society as a society that’s striving to lift itself out of poverty. That, in my opinion, is a manifestation... of Live Aid and the kind of imagery that’s been etched in the minds of people in Europe and the US.”
In contrast, Alemu argues for a shift from charity-driven development to impact investment—where capital is used to build local capacity, develop industry, and generate sustainable growth.
“I have never known of a country that made it out of poverty through pure charity.”
Telling a new story of African entrepreneurship
Alemu believes strongly in changing the narrative surrounding African economies. Rather than portraying Africa as a land of need, he sees it as a land of entrepreneurial potential.
“Problems for an entrepreneur literally equate to opportunities.”
He points out that most products in Ethiopian supermarkets are imported, despite the country having a large population and abundant agricultural capacity. He argues that what’s often framed as underdevelopment is actually a massive market gap—a space for innovation and growth.
“There are lots of success stories in Africa. With the right investment, I can almost guarantee… Africa is probably the best continent in the world.”
Investment, opportunity, and long-term commitment
Despite ongoing political and economic challenges, Alemu argues that Ethiopia still offers compelling opportunities for long-term investors. He explains that meaningful progress is being made on monetary and fiscal policy, including foreign exchange liberalisation and inflation control.
“What has been going on in Ethiopia over the last four or five years has been phenomenal. The biggest problem was foreign currency control. They have liberalised that and devalued the currency, which was a big issue. The way they managed to control inflation, in my opinion, is almost textbook—really, really commendable.”
For Alemu, it’s not about waiting for perfect conditions but recognising the rewards of early investment.
“For those who are brave enough to be the first to be here, I see a lot of success stories.”
Diaspora, dignity, and development
A major theme in the episode is the role of the African diaspora in transforming development outcomes. Alemu believes that individuals from the region who have lived and worked abroad are uniquely equipped to connect local needs with global expertise and investment.
“The diaspora, in my opinion, has a huge role to play.”
He also emphasises the importance of respecting local people and avoiding the paternalism that often comes with international development efforts.
Turning development gaps into investment opportunities
Alemu's core message is that the path to lasting change in Africa lies in economic empowerment, not dependency. Lovegrass Ethiopia’s success is proof that world-class products can come from rural Africa—and that consumers and investors alike need to broaden their understanding of what the continent has to offer.
“Forget the charity element. We need to evaluate the opportunities purely on what they can offer.”
He concludes with a call to action: reimagine Africa as a land of opportunity, and rethink what development means in practice.
“There is cheap labour... but [also] the desire to work, to learn. If you come to my factory, you will be shocked at how keen everybody is. And these are not food processing experts—these are people I picked from everywhere… we trained them. My point is, there is a lot of good stories to tell.”