The Ethiopian government and the United Nations Development Program, UNDP, have launched a three-year program to train 200,000 entrepreneurs, reports VOA. The businesses established by these new entrepreneurs potentially could create about 1.2 million jobs, and ultimately a stronger private sector to maintain its fast economic growth

The focus is both on start-up entrepreneurs and small and medium enterprises. The development program is based on four pillars: institutional development, entrepreneurial development training, business development services and partnerships.

UNDP resident representative to Ethiopia, Eugene Owusu, said the four areas deal with the key challenges that entrepreneurs face in Ethiopia.

Ethiopia is one of the world's fastest growing economies, but still ranks only 174 out of 187 countries on the UNDP Human Development Index. Although human development has improved by 32 percent in the last two decades, almost a third of the country still lives below the poverty line.

Ethiopia has known double-digit economic growth for the last few years and implemented the ambitious Growth and Transformation Plan to become a middle-income country by 2025. Much of the projected growth is based on the public sector, an approach that is difficult to maintain according to the International Monetary Fund [IMF].

The goal now is to encourage a bigger role for the private sector in the East African country.

Ethiopia’s Prime Minister Hailemariam Desalegn pointed out that the new three-year program will not establish new businesses just for the sake of having more entrepreneurs in the country.

“The government will not be in the business of propping up enterprises that are not competitive in the name of creating employment opportunity. That, we believe, is counterproductive,” said Hailemariam.

Hailemariam said creating jobs for young workers is imperative, as a majority of the nation is under 25 years old.

“As much as our huge population can be a source of strength and growth, it could also be a source of vulnerability and social tension unless we are in a position to offer job opportunities that can absorb this huge chunk of our population,” said Hailemariam.

The program will cost $26 million. So far, UNDP has allocated only $6 million. The Ethiopian government and UNDP say they will come up with the rest of the needed money.