The election of MIDROC Investment Group CEO Jemal Ahmed as President of the National Chamber Sectoral Associations, with Belayneh Kinde as Vice President, has triggered a fierce legal dispute over new eligibility criteria and alleged violations of the law governing chambers of commerce and sectoral associations.
The controversy centres on a general assembly held on April 7, 2026, which installed the new leadership under recently issued Ministry of Industry guidelines. The rules require candidates to possess registered capital of at least one billion birr and to manage a minimum of two operational manufacturing plants.
Former Vice President and Acting President Abebayehu Girma, joined by Oromia Regional Council representative Woyuma Gemese and other plaintiffs, filed a lawsuit at the Federal First Instance Trade and Investment Court seeking to invalidate the election results. The court, established in 2022 to handle complex commercial, banking, insurance and construction disputes, has reviewed the case file and adjourned the matter until October 2026.
Plaintiffs argue that the new financial threshold directly contradicts Proclamation No. 341/2003, which governs the establishment of chambers of commerce and sectoral associations. The proclamation was originally designed to amplify the voices of small and medium-sized manufacturing enterprises across all regions, rather than concentrating leadership in the hands of large conglomerates.
“This is not a chamber of commerce; it is a council of sectoral associations,” Abebayehu said, criticising the criteria for sidelining regional manufacturers with smaller production capacities. “After working for 16 years under the previous foundational framework, the co-founders cannot fathom why such criteria were suddenly introduced.”
Beyond the financial barriers, the lawsuit contends that the election bypassed the legal framework governing leadership selection. Under Proclamation No. 341, the Sectoral Associations Council functions as an umbrella organisation encompassing regional councils from Oromia, Amhara, Tigray, Afar and Somali regional states, alongside national sectoral associations.
The plaintiffs assert that the new leadership breached the mandatory bottom-up representation system. To legally compete for any federal board, presidential or vice-presidential position, an individual must first serve as a board member within their respective regional council. However, they claim the recent election bypassed regional manufacturing representatives through handpicked individuals appointed via ministerial directives.
The lawsuit further highlights an alleged violation of Article 23 of Proclamation No. 341, which stipulates that candidates running for sectoral association board or presidential seats must be actual business owners rather than appointed managers or employees. The plaintiffs maintain that the election is illegal, noting that a majority of the newly appointed board members fail to meet this ownership criterion.
The National Chamber Sectoral Associations operates as a constituent member of the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA), which comprises nine regional chambers, two city chambers, one national sectoral council and six national-level sectoral associations. ECCSA acts as a bridge between the government and the private sector, advocating for an improved business environment. Established under Proclamation No. 341/2003, the council serves as the apex body for manufacturing-related councils in Ethiopia, tasked with promoting the country’s manufacturing sector globally and fostering industrial investment.
The current dispute reflects deeper tensions within Ethiopia’s business support architecture. In early 2024, the Ministry of Industry reportedly drafted legislation to split ECCSA into separate industrial and commercial lines, arguing that manufacturing industries were not receiving adequate focus under the existing multi-sector framework.
Compounding the legal battle is an administrative vacuum that has paralysed the institution for five months. Although the disputed election took place in late March, no formal handover of power or assets has occurred. Normally, a handover takes place within days of an election concluding to safeguard organisational assets, maintain ongoing certification programmes, update signature cards to prevent banking disruptions, and preserve institutional history.
The former administration reported that repeated attempts to establish communication with the new leadership yielded no response. While sources close to the new leadership claim the appointees delayed the handover to conduct a comprehensive study of the institution’s operations, the former group views this as a stalling tactic.
“How can they audit an office without knowing what information exists?” Abebayehu asked, arguing that institutional membership services and industrial support should not be halted under the guise of an audit.
The outcome of this legal battle carries profound implications for Ethiopia’s manufacturing sector, particularly for small and medium enterprises (SMEs). According to information from Ethiopian Enterprise Development (EED), there are currently 4,177 registered medium manufacturing enterprises operating in Ethiopia. Additionally, over 25,000 total enterprises have been registered across the country’s small and medium manufacturing sector.
While the new financial thresholds risk effectively sidelining smaller enterprises from leadership roles and muting their policy voice, supporters of the criteria argue that high-net-worth manufacturers are better positioned to tackle sector-wide challenges — such as foreign exchange shortages and logistical bottlenecks — while building robust supply chains and market linkages for smaller producers.
The case now rests with the Federal First Instance Trade and Investment Court. Observers note that the court’s adjournment to October signals a prolonged legal contest. The plaintiffs have formally asked the court to void the election results on the grounds that the new structure violates fundamental legal principles, disrupts established regional representation hierarchies, and has created an administrative vacuum.
Ultimately, the court’s ruling will determine whether the new financial thresholds and election processes align with the objectives of Proclamation No. 341/2003. Balancing the inclusion of small and medium manufacturers against the leadership aspirations of capital-rich actors underscores a foundational debate in Ethiopian industrial policy, one that will shape not only the leadership of the Sectoral Associations Council but also the representation and future trajectory of Ethiopia’s manufacturing sector.
