Education
Regulatory Burden Threatens to Push Private Colleges Out of Market: Association
Capital Ethiopia · 2 hours ago · Read the Full Story on Capital Ethiopia
AI SUMMARY
Private higher education institutions in Ethiopia are warning that strict new licensing directives, rising compliance costs, and mandatory profit-reinvestment rules threaten their financial sustainability and long-term viability.
- Private higher education institutions warn that stricter licensing rules, compliance costs, and mandatory reinvestment requirements threaten their financial viability.
- Concerns center on the Education and Training Authority's Licensing and Re-Registration Directive No. 988/2024.
- Article 4(36) of the directive requires private institutions to reinvest at least 25 percent of net educational income into educational improvement.
- Habtamu Teka, President of Harambee University, stated that the mandatory reinvestment adds financial pressure on institutions facing high operating costs.
- Private colleges report that restrictions on instructors teaching across multiple institutions make it harder to recruit experienced professionals.
- Stakeholders questioned a reported requirement to deposit 500,000 birr for academic credential verification.
- Limitations on opening programmes in fields like law and education and a 500-metre distance rule between campuses constrain institutional expansion.
- The Ethiopian Private Higher Education and Technical and Vocational Education and Training Institutions Association submitted concerns to the government and Ministry of Education.
- Tamiru Mesfen, Head of the Authority's Office, stated that the concerns are being evaluated alongside existing legal frameworks, though no substantive decisions have been announced.
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