After nearly a decade of discussions, inter-ministerial disagreements and repeated revisions, Ethiopia’s long-awaited draft proclamation to modernise the country’s chamber of commerce framework has entered its final legislative phase.
The draft bill is currently with the Office of the Prime Minister, according to sources confirmed by Capital. It seeks to replace Proclamation No. 341/2003, which has governed the representation of Ethiopia’s private sector for more than two decades.
Stakeholders and business leaders expect the new law to be approved by the end of 2026.
The proposed reform comes as Ethiopia implements a broader macroeconomic reform agenda and prepares businesses to compete under the African Continental Free Trade Area (AfCFTA). Supporters argue that a stronger, unified chamber system is needed to represent the private sector, support trade facilitation and strengthen public-private dialogue.
Ethiopia’s organised business representation has undergone major changes over the past seven decades.
Following the 1974 revolution and the establishment of a command economy under the Derg regime, private enterprise faced severe restrictions. Proclamation No. 148/1978 dismantled the independent chamber model and placed the system under state direction.
Chamber membership became mandatory, while executive councils were integrated into national economic planning structures. Instead of serving as an independent voice for private business, chambers became part of state-controlled distribution, price-control and commodity-quota systems.
After the fall of the Derg and Ethiopia’s transition towards a market-oriented economy in the 1990s, Parliament enacted Proclamation No. 341, establishing the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA).
However, the law separated general chambers of commerce from specialised sectoral associations. This created a divide between traders, importers, exporters and service providers on one side, and manufacturers, agricultural processors and industrial guilds on the other.
Stakeholders say the split produced jurisdictional disputes, fragmented advocacy and weak coordination between national and regional chambers.
Efforts to amend Proclamation No. 341 began in 2017. Over the following nine years, the drafting process faced repeated delays, largely due to disagreements over the structure of business representation.
The central issue was whether Ethiopia should maintain a single chamber system combining trade and industry, or establish separate institutions for different economic sectors.
The disagreement became particularly pronounced between the Ministry of Trade and Regional Integration and the Ministry of Industry.
The Ministry of Industry and allied sectoral associations argued that manufacturing required a dedicated institutional platform separate from retailers and wholesalers. The Ministry of Trade and existing chambers of commerce supported preserving a single, integrated structure.
The dispute intensified in July 2025, when Capital reported that the Ministry of Industry had submitted a draft proclamation to the Office of the Prime Minister to establish an industry chamber focused solely on manufacturing.
The prospect of splitting the chamber system raised concerns among business leaders and chamber representatives. They warned that division could weaken membership organisation, trigger disputes over chamber assets, disrupt coordination among regional and city chambers and reduce the effectiveness of public-private dialogue.
Kenenissa Lemie, PhD, Secretary-General of ECCSA, said trade and manufacturing cannot be viewed separately in a modern value chain.
Industrial producers rely on traders, freight forwarders and logistics providers to address supply bottlenecks and market-linkage challenges, while importers and exporters depend on efficient distribution networks.
ECCSA subsequently formed a committee of board members to hold consultations with senior officials at the Office of the Prime Minister. It presented position papers arguing that further delays or structural fragmentation would harm national economic productivity.
Kenenissa confirmed to Capital that an inter-ministerial consensus was eventually reached to maintain a single, unified chamber of commerce identity covering both trade and manufacturing.
While the agreement resolved a major institutional dispute, experts say the success of the reform will depend on the governance, membership and financial provisions included in the final law.
Ethiopian chambers have historically faced financial constraints, relying heavily on membership dues, exhibition-space rentals and occasional donor grants.
The draft proclamation seeks to address this by creating statutory mechanisms for financial independence. It would allow the chamber network to collect service fees for issuing Certificates of Origin, commercial validations and specialised business advisory services.
The draft also strengthens commercial dispute-resolution mechanisms. Commercial litigation through traditional courts has often been lengthy and costly for local businesses and foreign investors.
In addition, the proposed law introduces transparent leadership election procedures, standardised national governance guidelines and improved coordination between national, regional and sectoral chambers.
The push to enact the proclamation comes as Ethiopia transitions from a state-led infrastructure model towards a more market-driven economy.
Business leaders say a strong, unified chamber is essential to support private-sector growth, improve policy advocacy and help firms respond to new economic opportunities.
The reform is also significant as implementation of the African Continental Free Trade Area accelerates. Ethiopian businesses face increasing regional competition, but also new export opportunities.
Navigating rules of origin, non-tariff barriers and cross-border logistics will require a well-resourced national chamber capable of providing market intelligence, trade facilitation and business support services.
If approved by the end of 2026, the new proclamation is expected to mark one of the most significant changes to Ethiopia’s private-sector representation system in more than two decades.
