ICFI Update – January 2026
One year after the launch of the ICFI hub & the signing of a pivotal Memorandum of Understanding (MoU) between Arba Minch University, Arba Minch Polytechnic Satellite Institute, Alliance College, and the International Centre for Frugal Innovation (ICFI), the frugal innovation ecosystem in Arba Minch, Ethiopia is gaining impressive traction. From business incubation to talent development, the energy is palpable—and the impact tangible.
"We launched the MoU dreaming that frugal innovation would shape Arba Minch—helping people build livelihoods from the ground up. Today, that dream is taking shape, one step at a time."
— Geertje Dingmanse-de Wit, program lead Arba Minch
From Paper Bags to Dishwash soap blocks
Behind the newly established Alliance Frugal Innovation Centre (AFIC) are people like Marta and Yewubdar—two of the seven entrepreneurs participating in the 2025 Business Incubation Program. Their stories represent what this collaboration is all about: building sustainable businesses with limited resources, grounded in deep local understanding.
Marta, a weekend student in accounting, is building a packaging and printing enterprise that serves clients ranging from clothing shops to hospitality businesses. Her products are tailored and her production waste is virtually zero.
Yewubdar makes blue dish soap blocks—a staple in Ethiopian households. She began by solving her own problem—lack of reliable supply of good quality dishwash materials—and quickly discovered that others shared the need. She now sells over 40 blocks a week, with simple but sharp branding and a lot of word-of-mouth support.
"What I see in this group is true resilience. These entrepreneurs don’t just dream, they adapt, build, and move. That’s frugal innovation at its core."
— Albert Kraaij, Business Coach and lecturer, HHS and ICFI
The incubation program helps participants sharpen their ideas through coaching, tools like the Frugal Business Model Canvas and Test-and-Learn Cards, and regular rooftop pitch sessions with peers and mentors.
🧠 Research Insights Box
The Arba Minch hub illustrates how practical entrepreneurship and academic inquiry can reinforce each other. While most participants are focused on product development, their cases feed broader ICFI research: How do frugal ventures adapt under uncertainty? What role does informal knowledge play? These insights challenge and enrich dominant innovation models from the Global North.
— Jasmin Hofman, Centre Manager ICFI and Community Manager LDE Global
A Local Milestone: The AFIC Launch
On January 14, 2025, Alliance Frugal Innovation Centre officially opened its doors. Hosted at Alliance College, AFIC is the first center of its kind in Southern Ethiopia. It brings together young entrepreneurs, students, local craftspeople, academics, and financial partners under one roof.
"We want AFIC to be more than a place in a building—it must become a mindset. We aim to equip our students not only with skills, but with the courage to act."
— Sultan Hebo, Principal, Alliance College
The launch included business talks, cultural performances, and field visits to local entrepreneurs already practicing frugality in their work. The event marked the shift from idea to infrastructure, with local ownership front and center.
Real Business, Real Growth
In the months following the launch, the incubation program accelerated. By April, each entrepreneur had a refined business model and an action plan. Products ranged from:
• Vegetable soup — an affordable local alternative to soups made with costly ingredients like fish and meat.
• Goat lotteries — offering families a chance to win a goat for holidays, rather than purchasing one outright which is unaffordable.
• Hybrid training program — combining online and offline learning to help students prepare for university entrance exams.
• Weaving workshop for tourists — highlighting South Ethiopia’s rich weaving traditions.
• Zero-waste paper bags — sustainable and locally produced packaging.
• Food delivery system — improving access to local meals.
• Urban greenery initiatives — turning avocado and mango seeds into trees.
• Bamboo furniture — crafted with minimal tools using local materials, by unemployed youth from rural areas.
• Compact goat shelters — made from recycled materials for easy assembly.
• Natural cosmetic soaps — produced from local herbs and ingredients.
"At first I thought frugal meant cheap. Now I see it’s about smart use of what we have—time, tools, and trust."
— Entrepreneur participant, group session
With regular sessions, peer-to-peer learning, and expert pitch training in May, the ventures grew both in ambition and clarity. The program applied design thinking canvases infused with frugal innovation principles—helping entrepreneurs break down their ideas into practical, affordable components and tailor them to Arba Minch’s low-resource context. Financial institutions like Vision Fund were brought in to give feedback on early pitches—building bridges between startups and capital.
“The entrepreneurs in Arba Minch reminded us that innovation doesn’t begin with technology—it begins with people, problems, and resourcefulness. The same applies in the Netherlands, even if the constraints look different.”
"Entrepreneurship is one of the most powerful tools for development because it begins where policy ends: with people turning their ideas into action."
— Albert Kraaij, Business Coach and lecturer, HHS and ICFI
Expanding the Concept of Innovation
Frugal innovation isn't limited to products—it also shows up in culture and community. In June, AFIC launched a Talent Incubation Track, inviting youth to co-create performances that reflect social realities in Arba Minch. One skit explored food security through the eyes of a struggling family; another satirized student life in overcrowded dorms.
The performances were followed by the screening of a short documentary made Jasper, an ICFI student, exploring the meaning of frugality in everyday life.
What’s Next?
The current cohort of entrepreneurs will continue and a new business incubation cohort has started. The entrepreneurs are focusing on testing prototypes in real markets, strengthening financial planning, exploring digital sales channels and matching with local investors and mentors
Meanwhile, we are developing case studies based on the most promising ventures, to inform policy, education, and research in Ethiopia and beyond.
Final Word
Frugal innovation in Arba Minch is no longer just an academic concept or a development buzzword—it is being lived, tested, and built by people like Marta, Sultan, Albert, Geertje and Yewubdar. And with a strong, locally led alliance behind it, the ecosystem is only just beginning.
