Bemnet Demissie's journey into the world of technology began with a simple observation: the inefficiency of manual processes. While still in high school and university, he actively pursued personal tech projects, driven by a passion for finding innovative solutions to everyday challenges. To this day, Bemnet maintains an unwavering focus on his objectives and delivers a world of solutions to the business world. He was Meri Podcast's guest on season 10's 11th episode, where he shared his journey as a tech entrepreneur in Ethiopia.

A Young, Tech Savvy Student

Bemnet Demissie was unlike his high school peers: he was curious, practical, and inventive. A unique talent he developed early on was the ability to physically recreate any electrical circuit he encountered in a diagram.

He grew up in Debrezeit (now Bishoftu), and his first visit to Addis Ababa was in the 10th grade when he was invited to work on a project sponsored by the United Nations Development Programme (UNDP). He was subsequently invited back the following years to participate in various projects. During the summer before 12th grade, he worked on a traffic light management system, which he presented at the National Academic Conference held in Addis Ababa. While initially criticized for using an electromechanical system instead of an electrical one, he redesigned the system with the support of his teachers, incorporating a microcontroller and infrared technology to efficiently detect traffic density. This cost-effective and efficient system earned him an award from former President Girma W/Giorgis and a Utility Model Certificate.

By the end of high school, he joined Addis Ababa University's Engineering Campus in 5 Kilo, as a student in Electrical Engineering, while simultaneously undertaking client projects. This demanding workload proved challenging, ultimately leading him to drop out of university in his third year to dedicate himself fully to his work. This decision enabled him to successfully deliver the prototype for his automated advertisement billboard, designed to rotate and display three different advertisements.

After this project, he began working as a production manager where he began to identify gaps in his department's operations. Despite having an electrical background, he taught himself to code and developed a Management Information System (MIS) database that automated and revolutionized the company's workflow. This experience ignited his entrepreneurial spirit, revealing the vast potential for automation and Enterprise Resource Planning (ERP) within the burgeoning Ethiopian business landscape.

From Seed to Scale: The Birth of CNET

In 2003, with a modest initial investment of 3000 ETB and two partners who soon departed, Bemnet embarked on his entrepreneurial venture: CNET. Fueling his efforts was an unwavering passion for research and development, rather than immediate profit. At the time, there were very few tech companies in Ethiopia to serve as role models, with Omnisoft and Powergeez being notable exceptions. Bemnet diligently collected data from business owners during the day and utilized it to code his software at night.

Early challenges were numerous. Despite submitting competitive bids, CNET initially lost two public tenders. However, a breakthrough came when Bemnet observed the long queues at Abrico Supermarket caused by the manual  generation of receipts. He proactively offered his payment interface to the supermarket free of charge, leveraging it as a powerful marketing tool. This marked the birth of the first Point of Sale (POS) system in Ethiopia, and soon, clients were lining up to install the POS system in their supermarkets, cafes, restaurants, and hotels.

Confronting Obstacles: Legal Hurdles and Government Scrutiny

CNET's success quickly drew the attention of the authorities. Despite his clients transparently completing their VAT reports, the government, unfamiliar with this new technology, deemed Bemnet's system illegal. This led to police raids, computer seizures, and even a brief period of imprisonment for Bemnet, followed by a court appearance. This challenging experience underscored the critical need for a more supportive and understanding government framework for tech entrepreneurs.

Undeterred, Bemnet immediately sought a resolution by presenting his case to the Ministry of Revenues. Through the guidance of a Serbian consultant and a compelling presentation by Bemnet himself, the Ministry of Revenues approved the use of his system, ultimately leading to a transformation of the fiscal law. While this was a significant step for Ethiopia, Bemnet acknowledges the rapid growth of a similar company in Oman, which expanded to 17 countries and achieved multinational status, and Facebook, founded just two months before CNET, which conquered the global market despite facing legal challenges.

Bemnet aptly states, "Entrepreneurs should be given a space to make mistakes and learn from them rather than die from them," highlighting the importance of adaptability and trust in public-private relationships for fostering growth.

Building an Empire: Overcoming Challenges and Fostering Growth

Despite these setbacks, CNET persevered. Recognizing the limitations of bank loans, the company relied on self-funding to fuel its growth. Now CNET boasts an aggregated capital exceeding 100 million. As a software manufacturing firm, CNET faces competition from software brokers (foreign firms operating and selling software in Ethiopia) whose primary risk lies in market penetration. In contrast, CNET bears the brunt of development costs and substantial risks, as they oversee every stage from ideation to development and deployment.

Human Capital: Cultivating Talent and Fostering Innovation

A key element of CNET's success has been its commitment to staying at the forefront of technological advancements, consistently adapting to global trends in automation and innovation, with the support of its young and dynamic workforce. CNET employs 680 permanent employees, the majority of whom are engineering graduates.

CNET prioritizes the development of its human capital. The company actively recruits and mentors interns and fresh graduates, believing they possess a deeper understanding of emerging technologies. A unique 11-step career ladder ensures employee growth and development, while a focus on training IT graduates in business principles aligns with the company's vision of bridging the gap between technology and business needs.

Bemnet recognizes the value of Addis Ababa University's BIS (Business Information Systems) degree, as it perfectly integrates business knowledge with IT skills, a highly sought-after combination at CNET. Unfortunately, the limited number of graduates from this program has not been able to meet the demand for skilled employees, considering that close to one hundred thousand businesses in Ethiopia have yet to access business automation services.

Expanding Horizons: A Multi-faceted Approach

Recognizing the limitations of internal implementation, CNET empowers former employees to become entrepreneurs. By encouraging them to establish their own firms specializing in CNET software implementation, the company fosters a thriving ecosystem of skilled partners. These partnerships, underpinned by NDAs, ensure the consistent quality and secure deployment of CNET's solutions while providing significant growth opportunities for former employees.

CNET's expansion strategy has been driven by a desire to provide comprehensive solutions to its clients. The company has established sister companies, each specializing in a specific aspect of the business ecosystem:

• IPOS: A trading company that provides hardware solutions (barcode scanners, biometric readers) to complement CNET's software. CNET's solutions are designed to interact with up to 48 types of devices.

• Ibex College: The school offers training, certification courses, and support to ensure effective utilization of CNET's solutions, as well as hospitality and tourism management training.

• Red Cloud ICT Solutions: Provides secure and reliable cloud computing infrastructure, enabling businesses to access and utilize data seamlessly. Red Cloud plays a crucial role in helping companies avoid the costs associated with setting up and running their own servers and data center infrastructures. Red Cloud's services are particularly valuable as they mitigate the risks of power outages, data corruption, and connectivity issues that are common in premise-based setups. Their cloud solution is analogous to Amazon Web Services (AWS), which hosts data for some of the world's largest tech companies, such as Netflix.

• Intelligent Open Commerce Platform: Created under Red Cloud and integrated with the ERP module of the business, it offers e-commerce solutions to local retailers and distributors, allowing businesses to expand their reach and engage with customers online. One product from the platform, Hulubeje (available on Telebirr), enables customers to select their preferred seats online, similar to the experience at a box office. Another innovation is a digital payment gateway that reduces cash handling for businesses.

The Ethiopian Business Landscape

CNET serves over 6,000 companies across 7 sectors, with varying levels of eagerness to adopt CNET's new softwares. Demonstrating a commitment to customer satisfaction, Bemnet prefers to allow his clients to test new technologies free of charge, rather than pressuring them into immediate purchases. This approach enables clients, regardless of size, to assess the suitability of the solution for their organization.

The Ethiopian tech landscape presents a vast opportunity for growth, as many business processes remain unautomated, and a significant number of companies can benefit from providing business automation solutions.

Lessons Learned from 20 years as the head of CNET

• Make the hard decisions.

• Choose a path and stay focused on it to reap the rewards.

• Seek guidance from mentors or advisors to minimize business mistakes.

• Identify your core strengths and adhere to them.

• Success is a combination of 60% hard work, 40% luck (and the guidance of a higher power).

• Regardless of the challenges and setbacks, it is crucial to persevere and never give up.

Bemnet Demissie's long journey serves as an inspiration for aspiring entrepreneurs in Ethiopia and beyond. It highlights the importance of perseverance, innovation, and a commitment to building a strong foundation of human capital.