Private higher education institutions in Ethiopia are warning that new regulatory rules could undermine their financial viability and limit sector growth. The concerns centre on the Education and Training Authority's Licensing and Re-Registration Directive No. 988/2024, which introduced stricter licensing requirements and quality standards. Private colleges say the tighter rules, combined with rising compliance costs and other financial obligations, are making it harder to introduce new programmes, recruit qualified staff and expand enrolment.
A key point of contention is a requirement that private institutions reinvest at least 25 per cent of their net income from education into educational improvement, according to Article 4(36) of the directive. Habtamu Teka, President of Harambee University and a member of the Ethiopian Private Higher Education and Technical and Vocational Education and Training Institutions Association, said the mandatory allocation adds to financial pressure on institutions already facing high operating costs. Other concerns include restrictions on hiring instructors who teach at multiple institutions, reported requirements for institutions to deposit 500,000 birr for credential verification, and limitations on opening programmes in fields such as law and education.
The association has submitted concerns to the government, the Education and Training Authority and the Ministry of Education, calling for a review of the regulatory framework and more consistent treatment of public and private institutions. Molla Tsegaye, President of Admas University and the association, said directives from the regulatory authority had become a major bottleneck for private higher education.
The Education and Training Authority said it was evaluating the issues raised by stakeholders alongside existing legal frameworks. Tamiru Mesfen, Head of the Authority's Office, said decisions would be communicated following consultations. However, no substantive decisions addressing the disputed requirements had been announced at the time of reporting.