Abstract. This paper provides empirical evidence of agile method adoption in smaller companies in Ethiopia. Agile methods are emerging as best practice for software development in the global north. So, is there evidence that agile methods are being used in Ethiopia? A Grounded Theory approach was adopted using face-to-face interviews with 17 software professionals from 7 software companies, which were selected by using a snowball sampling technique. The interviews were semi-structured and open-ended and have been audio-recorded, transcribed and analysed. It was discovered that agile principles, values and practices are important to study participants. Agile practices are used to encourage user participation and clarify requirements. However, it was found that many projects are for government clients that mandate extensive requirements and design documentation which must be approved prior to delivery of working software that complies with predefined delivery schedules.