The Ethiopian business community is witnessing a brewing institutional upheaval as two conflicting draft proclamations regarding the structure of Chambers of Commerce stir debate among government bodies, private sector actors, and regional chambers alike. At the center of the dispute is a fundamental question facing Ethiopia’s commercial and industrial sectors: should the long-standing, unified Chamber system persist, or be divided into separate entities to serve the manufacturing industry and the broader trade sector distinctly?
The Ministry of Industry has formally submitted a letter to the Prime Minister’s Office requesting immediate approval of its draft proclamation to establish an industrial council focused exclusively on the manufacturing sector. This move follows the rejection of a previously proposed draft by the Ministry of Trade and Regional Integration concerning the establishment of chambers of commerce, which was opposed by the Chambers of Commerce and Sectoral Associations.
If the Ministry of Industry’s draft is approved, the consequences could be far-reaching. The current Chambers of Commerce, which unify trade and industrial sectors under one institutional roof, could be split into two separate councils — one for commerce and trade, and another for industry. Such a split would affect the very makeup, membership, and management of assets of these chambers, including their considerable fixed and movable property and financial holdings. There are growing concerns that the division could lead to the fragmentation of resources and power bases long held by the unified chambers.
The Proclamation on the Establishment of Chambers of Commerce, approved in 2003 and currently in force, has faced criticism for emphasizing support to the broad business sector while allegedly sidelining the manufacturing segment. While the Ministry of Trade and Regional Integration reportedly agrees that a combined decree governing both trade and industry chambers is desirable, the Ministry of Industry insists on a dedicated industrial council aimed at enhancing the competitiveness of the manufacturing industry — a sector it deems crucial for Ethiopia’s development trajectory.
Should the separation materialize, not only would the Ethiopian Chamber of Commerce and the Ethiopian Industry Council be distinct entities, but so would their regional and city-level counterparts, necessitating a renaming and reorganization of these local chapters.
The process of drafting these two competing bills has not been inclusive; reports indicate several regional and city chambers of commerce and sectoral associations did not participate in the consultations. There is also uncertainty about the legal trajectory of the draft proclamations — whether they will be jointly considered by the Council of Ministers, or independently reviewed by the House of People’s Representatives.
In a letter delivered to the Prime Minister’s Office, the Ministry of Industry underscored the urgency of approving its draft proclamation on the establishment of industrial councils and professional associations to accelerate manufacturing sector growth. The Ministry highlighted that it originally submitted this draft on November 3, 2024, following all legal procedures.
According to the letter, the Ministry of Justice was slated to facilitate joint consultations between the Prime Minister’s Office and the Ministry of Trade and Regional Integration on February 17, 2025, but was unable to do so due to the absence of clear directives from the Prime Minister’s Office as of February 25, 2025. The Ministry further attached reference letters from the Ethiopian National Council of Sectoral Associations dated February 8, 2024, and June 17, 2025, which both warned about the potential negative impacts on the manufacturing sector of delaying approval of the draft proclamation.
The Ministry of Industry emphasized that this draft aligns with national economic policies and initiatives by seeking to integrate and empower private sector actors in manufacturing for sustainable growth. Approval is seen as a necessary step to eliminate conflicts of interest that currently arise between domestic manufacturers and traders under the existing unified chamber structure.
Abebayehu Girma, Vice President of the Ethiopian Chamber of Commerce and Sectoral Association, offered a pragmatic perspective on the ongoing debate. He stated that his concern is less about whether one or two proclamations govern the chambers, and more about understanding why the current proclamation has not been approved.
Abebayehu detailed the historical origins of the current proclamation, referencing how the 2003 proclamation (No. 341/2003) was crafted to unify oversight of commerce and industry under a single ministry. However, after nearly two decades, changes in the government’s ministerial structure — particularly the 2022 split of the Ministry of Trade and Industry into two separate ministries — have complicated this arrangement.
He recounted how disputes over the governance structure intensified when the Ministry of Industry sought to draft its own decree to establish a dedicated chamber for manufacturers, citing problems of poor coordination and conflicts of interest. According to Abebayehu, the differing visions have led to confusion and rivalry: “They (industry and trade sectors) are building, but instead of cooperating, each views the other as an adversary. This is not a view held by a few individuals but reflects widespread concerns.”
While acknowledging that the current chamber proclamation is outdated and ineffective in representing sector-specific needs, Abebayehu warned of potential institutional conflict should the draft lead to separate chambers without resolving underlying tensions. He advocates for amending the existing law to better serve both trade and manufacturing interests within a single, cohesive framework.
Abebayehu also lamented that the government has yet to fully comply with international conventions on inclusive governance, pointing out that many industry voices remain unheard in the legislative impasse. He indicated that while he personally would prefer a unified chamber law, he would not oppose separate proclamations if they address past problems fairly and deliver clear lines of authority.
He attributed part of the delay in approving legislation to resistance from both industry factions and certain leaders within the Chamber of Commerce, citing disagreements over control and representation. He also disclosed attempts to bring the issue to the Prime Minister’s Office, noting a lack of clarity over the government’s stance on the matter.
The Ministry of Trade and Regional Integration reportedly prefers a single “Chamber of Commerce Establishment Proclamation,” while the Ministry of Industry advocates for a separate “Establishment of Chambers of Industry Proclamation.” Approximately a year and a half ago, the Prime Minister’s Office had agreed that a decree benefiting both sectors and the broader economy was necessary and feasible.
Recently, the Prime Minister himself addressed representatives of Ethiopia’s business community, ordering that the division between trade and industry chambers be resolved immediately. Following this directive, the Ministry of Trade and Regional Integration convened board members of key associations on July 7, 2025, presenting the draft proclamation to the Council of Ministers for decision. However, implementation remains stalled due to administrative and possibly political reasons.
The Ministry of Industry’s letter insists that the proclamation be issued expeditiously, arguing the delay hampers the country’s industrial growth ambitions and creates unnecessary conflicts between merchants and manufacturers.
The potential split of Ethiopia’s Chambers of Commerce and Industry represents a critical moment for the nation’s private sector governance. How this institutional restructuring unfolds could influence business operations, public-private cooperation, and industrial policy implementation for years to come.
The private sector, as well as government officials, now await a definitive resolution — either a unified law that balances the needs of commerce and manufacturing or a formal division that creates distinct institutions empowered and resourced to serve their respective sectors effectively.
