Autonomizing Public Universities in Ethiopia: Exploring the Potential Challenges

2.1 Principal-Agent Theory (PAT)

Principal-Agent Theory (PAT) examines the relationship between a principal (authority) and an agent (subordinate), where the agent is entrusted to act on behalf of the principal. However, conflicts often arise because the agent may have different goals or preferences than the principal, leading to issues of trust, accountability, and control. In the context of university autonomy, the government acts as the principal, overseeing public universities, while the universities function as agents tasked with carrying out academic, administrative, and financial responsibilities.

For administrative autonomy, PAT is crucial in understanding the complexities of delegating decision-making powers to universities. Governments in many countries, including Ethiopia, often exercise significant control over public institutions due to concerns about accountability, national standards, and equity. This can result in universities having limited freedom to govern themselves. The theory suggests that to enhance administrative autonomy, universities must demonstrate that they can align their internal goals with the broader policy objectives of the state while maintaining operational independence (Shattock, 2019). However, political interference, bureaucratic regulations, and the legacy of centralized governance in Ethiopia continue to hamper universities’ ability to self-govern. By applying PAT, the study can examine how shifting more decision-making power to universities—while ensuring mechanisms for accountability—might lead to better governance and innovation within Ethiopian public universities.

In terms of academic autonomy, PAT also helps explore the extent to which universities can set their own academic standards, develop curricula, and manage quality assurance. The principal (government) often imposes rigid accreditation standards and curricular frameworks, which may conflict with universities’ desire for academic freedom and innovation. This tension can be analyzed through PAT by exploring how universities negotiate the balance between fulfilling government mandates and pursuing independent academic goals (Shattock, 2019).

2.2 Resource Dependency Theory (RDT)

Resource Dependency Theory (RDT) posits that organizations are dependent on external resources for their survival, and this dependency shapes their decisions, strategies, and autonomy. Universities, as organizations, are reliant on financial resources from the government, donors, and, in some cases, tuition fees. In the Ethiopian context, public universities are primarily funded by the state, which creates a dependency that limits their financial autonomy.

RDT is highly relevant for understanding the financial autonomy of Ethiopian universities because it emphasizes how financial dependence on the government restricts institutional flexibility. Universities that depend heavily on government funding often face tight controls over how funds are allocated and spent, which can hinder their ability to make independent financial decisions (Pfeffer & Salancik, 2003). For example, limited access to diversified revenue streams forces universities to comply with governmental priorities, limiting their ability to invest in innovative research, infrastructure, or program expansion. The study could apply RDT to explore how Ethiopian universities might overcome these limitations by developing alternative sources of revenue, such as industry partnerships, alumni donations, or income-generating programs (Bourgeois & Nizet, 2019).

The theory also highlights the importance of strategic alliances and collaborations to mitigate resource dependency. In the case of Ethiopian universities, RDT can help analyze potential partnerships with international organizations or private sectors that could reduce their overreliance on state funding, allowing for more independent financial decision-making and, consequently, more autonomy.

2.3 Institutional Theory

Institutional Theory focuses on how organizations are influenced by the institutional environments in which they operate. It suggests that organizations are shaped by formal structures, cultural norms, and external pressures, which can either promote or constrain their autonomy. This theory is particularly useful for examining both administrative and academic autonomy within Ethiopian public universities.

For administrative autonomy, Institutional Theory helps explain how universities are embedded in a broader governance framework shaped by governmental policies, legal structures, and historical norms. In Ethiopia, universities have long been subject to centralized control, which is reinforced by institutional norms and expectations about state oversight. This institutionalized centralization can limit the scope for universities to develop their own governance systems, as deviations from government-prescribed practices are often seen as noncompliant or inefficient (DiMaggio & Powell, 1983). Institutional Theory allows the study to explore how universities can navigate these constraints and carve out spaces for autonomy while remaining compliant with national and regulatory standards. It also sheds light on the cultural and political barriers that may hinder the decentralization process, such as resistance from established bureaucratic institutions.

In the case of academic autonomy, Institutional Theory highlights how external forces, such as accreditation bodies, quality assurance agencies, and international rankings, shape academic policies and decision-making within universities. These external pressures often force universities to conform to standardized models of academic governance, even when such models may not align with the institution’s specific needs or goals (Meyer & Rowan, 1977). For Ethiopian universities, this means that while they may aspire to greater academic freedom, they are constrained by the need to meet externally imposed standards, such as those related to curriculum development and faculty qualifications. Institutional Theory can help explore how Ethiopian universities might balance the demands for academic conformity with their desire for innovation and flexibility in teaching and research.

3.1 Description of the study area

This study is designed to be conducted at the national level with specific limitations. To enhance manageability and facilitate meaningful comparisons of results, as well as to derive valuable insights and findings that can be applied to other universities across the country, the study focuses on three first-generation universities. These universities, namely Addis Ababa University, Hawassa University, and Arba Minch University, have been purposefully selected for several reasons, including their roles in the first and second phases of public university autonomy in Ethiopia.

Addis Ababa University (AAU), established in 1950 as the University College of Addis Ababa (UCAA), stands as Ethiopia’s oldest and largest institution for higher learning and research. Over the years, AAU has been a leading center for teaching, research, and community services. From a modest beginning with 33 students in 1950, AAU now boasts a student body of 48,673 (including 33,940 undergraduates, 13,000 master’s students, and 1,733 PhD candidates) and a staff of 6,043 (comprising 2,408 academics and 3,635 support staff ). The university offers 70 undergraduate and 293 graduate programs across its 14 campuses, including 72 PhD and 221 master’s programs. Since its inception, AAU has witnessed over 222,000 graduates (AAU Official Website, 2023).

Hawassa University (HU) has its origins in the mid-1970s with the establishment of “Awassa College of Agriculture” (ACA) in 1976, and it became a full-fledged university in 1999. Prior to this transformation, ACA was part of Debub University, which also included two other colleges: Wondo Genet College of Forestry (established in 1978) and Dilla College of Teacher Education and Health Sciences. In 1999, these institutions merged to form Hawassa University. As of 2018/19, HU comprises two institutes and eight colleges, spread across seven campuses. The university serves more than 40,000 students in regular, continuing, and distance education programs, offering a wide array of undergraduate, postgraduate, and PhD programs (HU Official Website, 2023).

At the moment, Hawassa University (HU) is one of the first-generation universities in Ethiopia encompassing 9 colleges, 3 institutes, and 7 campuses set in and outside of Hawassa City. Hawassa University in Ethiopia comprises several colleges, each offering various academic programs (Hawassa University Official Website, 2023). College of Agriculture, College of Business and Economics, College of Computing and Informatics, College of Education and Behavioral Sciences, College of Engineering, College of Medicine and Health Sciences, College of Natural and Computational Sciences, College of Social Sciences and Humanities and college of Law and Governance.

Arba Minch University (AMU) is a national university located in Arba Minch, within the Southern Nations, Nationalities, and Peoples’ Region of Ethiopia. Its roots can be traced back to the Arba Minch Water Technology Institute, established in September 1986 and later transferred from the Water Resource Commission to the Ministry of Education in 1993. The official establishment of Arba Minch University took place on September 20, 2004, following a government proclamation (Council of Ministers 111/2004). Initially composed of the Water Technology Institute, Faculty of Engineering, Faculty of Science, Faculty of Social Science and Humanities, Faculty of Business and Economics, and the School of Graduate Studies, AMU now offers a diverse array of 74 undergraduate programs, 115 graduate programs, and 27 PhD programs. The university is organized into three institutes, six colleges, and four schools, each distributed across its six campuses: Main Campus, Abaya Campus, Chamo Campus, Kulfo Campus, Nech Sar Campus, and Sawla Campus (AMU Official Website, 2023).

3.1.1 Research Design and Approach

The study employed a descriptive research design to explore the challenges associated with achieving autonomy in Ethiopia’s public universities. This approach allowed for a detailed examination of the administrative, academic, and financial obstacles faced by these institutions, utilizing qualitative data from interviews, focus group discussions, and observations (Creswell, 2014).

In the study, a combination of qualitative data collection methods—including semi-structured interviews, key informant interviews, focus group discussions (FGDs), observations, and document analysis—were employed to address the research questions on institutional autonomy in public universities. Each method was strategically selected to align with the specific research questions, ensuring a comprehensive understanding of the perceptions and challenges surrounding institutional autonomy in the selected universities.

Semi-structured interviews and key informant interviews were used to examine the perceptions of universities regarding institutional autonomy, focusing on both expectations and the actual realities experienced. Semi-structured interviews allowed for the exploration of personal insights, capturing the nuanced perspectives of individual participants, such as university faculty and administrative staff, regarding their expectations of autonomy and the actual practices observed in their institutions. Key informant interviews targeted high-ranking officials, policymakers, and experts knowledgeable about governance structures and policies influencing institutional autonomy. These interviews provided valuable insights into the decision-making processes and the broader institutional context, facilitating a deeper understanding of how autonomy was conceptualized and operationalized in practice.

Focus group discussions (FGDs) were employed to evaluate the challenges related to academic autonomy in the selected public universities. FGDs encouraged group interaction and allowed participants to reflect on shared experiences and concerns. Faculty members and students, as key stakeholders in academic autonomy, participated in these discussions. The collective nature of FGDs facilitated the identification of common themes and challenges faced by different participants, promoting a more holistic understanding of the barriers to academic freedom and autonomy within the university setting. For the interviews and focus group discussions (FGDs), the researcher utilized interview guide to articulate the data collection process (Mohammed, 2024).

Observations were conducted to identify the challenges related to administrative autonomy. By observing the day-to-day administrative processes and decision-making practices, the researcher gained firsthand insights into how autonomy was exercised in practice. Observations allowed the researcher to assess the extent of administrative decentralization, the level of involvement of different university actors in decision-making, and the constraints imposed by external bodies such as government agencies. This method provided a practical and grounded understanding of the challenges hindering effective administrative autonomy. Additionally, observation checklists were employed for the direct observations to ensure a systematic and comprehensive assessment of the phenomena under study (Mohammed, 2024).

Document analysis was essential for examining the challenges related to financial autonomy in the selected public universities. The method involved the systematic review of financial reports, policy documents, university budgets, and other relevant documentation that shed light on the financial governance and autonomy of universities. By analyzing these documents, the researcher identified patterns in funding allocation, decision-making authority regarding financial resources, and the financial constraints faced by universities. This approach was crucial for understanding the broader financial context in which public universities operated and the extent to which financial autonomy was realized or constrained. Table 1 shows the equal representation of participants from the three universities, along with the inclusion of Ministry of Education officials.

Observations were made on academic, administrative, and budget plans using standardized checklists. Document analysis focused on university autonomy guidelines, reports, and administrative and teaching-learning facilities to diversify data sources and gain a comprehensive understanding of the situation.

Data management focused on ensuring quality assurance through integrated systems for data collection, cleaning, storage, and monitoring (Gibbs, 2018). Cross-referencing interviews with documents also played a key role in verifying the reliability of the data (Yin, 2018). Participants were given detailed explanations of the research questions to ensure clarity and facilitate meaningful responses (Silverman, 2020; Yin, 2018).

3.2 Data analysis

The qualitative data collected for this study were analyzed using a combination of thematic and comparative techniques. Specifically, Braun and Clarke’s (2006) six-step thematic analysis approach was adopted, which involves the following stages: (1) familiarization with the data through repeated reading, (2) generating initial codes by identifying relevant features across the dataset, (3) searching for themes by grouping codes into broader patterns, (4) reviewing themes to ensure coherence and relevance, (5) defining and naming themes to capture their essence, and (6) producing the final report that connects the themes to the research questions (Braun & Clarke, 2006).

Quantification was not used in this analysis, as the primary focus was on the depth and richness of qualitative insights rather than numerical representation (Creswell, 2013). Instead, the themes were developed inductively, emerging from the data rather than being pre-determined. Key themes that emerged included university autonomy, administrative challenges, academic freedom, and budgetary constraints.

In terms of comparative techniques, this refers to the process of systematically comparing data from different sources and categories to identify similarities and differences (Flick, 2018). For this study, comparisons were made between the interviews, observational data, and document analysis. Observations, conducted on academic, administrative, and budget plans using standardized checklists, were cross-referenced with university autonomy guidelines, reports, and other administrative documents. This comparative approach helped to reveal gaps between policy intentions and actual practice (Miles, Huberman, & Saldana, 2014).

Observations were analyzed by matching the data collected using checklists against set criteria from the guidelines and reports, thus providing a structured evaluation of academic and administrative performance (Patton, 2015). Document analysis was performed on university autonomy guidelines, institutional reports, and teaching-learning facilities. The integration of these various data sources helped diversify the data and offered a more comprehensive understanding of the situation under study (Bowen, 2009).

4.1 Potential Challenges to Institutional Autonomy in Ethiopian Public Universities

Based on the data gathered from study participants, it was emphasized that institutional autonomy stands out as a fundamental aspect of our university’s values. Participants highlighted how this autonomy serves as the foundation upon which the university operates, allowing it to chart its own course and make decisions that align with its unique mission and values. Institutional autonomy empowers our university to maintain control over academic and administrative affairs, fostering an environment where creativity, innovation, and academic freedom thrive.

Participants emphasized that this autonomy enables the university to respond dynamically to the evolving needs of students, faculty, and the broader community, ultimately contributing to the institution’s success and reputation. They noted that safeguarding and promoting institutional autonomy will remain a priority to ensure the continued excellence and relevance of our university in the academic landscape (Interview, Hawassa, Addis Ababa, Arbaminch, 2023).

Additionally, Maassen et al. (2017), highlighted that the autonomy to determine the internal organization of the university, to decide its internal financial affairs, its management, salaries, recruitment of staff and its actions on admissions and its academic content, including its programs, language of instruction and quality assurance, are all crucial elements of institutional autonomy (Maassen et al., 2017). Universities have an obligation to society to safeguard and promote independent institutional decision-making, planning and management, and to rise with their governance bodies the importance and value of institutional autonomy as the necessary pre-condition for the conduct of scholarship and higher education (Maassen et al., 2017).

Coming to the challenges, institutional autonomy in Ethiopian universities presents potential challenges when it comes to implementing key governance and structural reforms. Historically, Ethiopian universities have been highly dependent on the government for decision-making in areas like leadership appointments, academic structures, and partnerships with external stakeholders. This dependency has led to a limited capacity for self-governance and flexibility in responding to academic and societal needs (Salmi & Saroyan, 2007). As universities begin to navigate the transition toward greater autonomy, they encounter several challenges related to leadership selection, stakeholder inclusion, and the establishment of partnerships.

One of the critical issues is the university’s mandate to elect its president, prepare criteria for selection, and potentially dismiss presidents when necessary. While this shift could empower universities to select leaders aligned with their vision, the lack of experience in autonomous decision-making raises concerns about transparency and accountability (Castelló-Climent & Hidalgo-Cabrillana, 2012). According to findings from semi-structured interviews with university administrators, one participant emphasized, “The challenge lies in ensuring that the selection process remains free from political influence, given the long-standing culture of state intervention in university affairs.” Such perspectives echo the broader scholarly concern that newly autonomous institutions may struggle with establishing robust governance practices (World Bank, 2012).

Moreover, the inclusion of civil society and private sector representatives on university boards is intended to broaden perspectives and improve responsiveness to community needs. However, focus group discussions (FGDs) conducted with faculty members revealed apprehensions about potential conflicts of interest and the influence of external actors over academic decisions. One faculty member noted, “Bringing in private sector representatives might shift the focus from academic values to profit-driven motives, risking the university’s commitment to research and education.” Similar findings have been reported by Brezis (2019), who argued that integrating external stakeholders into university governance could undermine academic independence if not carefully managed.

Deciding the academic structure of the university also presents challenges. Traditionally, academic structures in Ethiopian universities have been dictated by national policies, which has led to standardized curriculums and limited flexibility. As universities gain the power to determine their academic programs, they must navigate the challenge of balancing innovation with quality standards. Veugelers (2009) highlighted that rapid shifts in academic structures without adequate preparation can lead to inconsistency in educational quality, which could diminish the credibility of institutions. Interviews with university officials underscored this concern, with one respondent mentioning, “We need to ensure that our newly designed programs meet international standards while also addressing local needs—it’s a difficult balance to strike.”

The establishment of profit and non-profit entities, both locally and internationally, introduces another layer of complexity. While such initiatives could potentially enhance financial sustainability and innovation within universities, they also come with risks of misaligned priorities. Salmi and Saroyan (2007) found that universities with new profit-oriented ventures often faced tensions between maintaining academic integrity and pursuing financial gains. Document analysis of past university initiatives in Ethiopia indicates that previous attempts to establish income-generating projects were often poorly managed, leading to financial losses and reputational risks.

Overall, the shift toward institutional autonomy for Ethiopian universities is fraught with challenges that require careful navigation. Without the development of strong internal governance frameworks, transparency mechanisms, and capacity-building measures, the risk of missteps in leadership selection, stakeholder engagement, and financial management remains high. As the World Bank (2012) noted, successful institutional autonomy requires a balanced approach, where universities gain freedom but also develop internal checks and balances to ensure their long-term stability and growth. Addressing these challenges is crucial for Ethiopian universities to transition effectively into autonomous entities that can contribute meaningfully to national development.

4.2 Challenges to Administrative Autonomy in Ethiopian Public Universities

The quest for autonomy within Ethiopian universities has been a long-standing issue, tracing back to the establishment of Addis Ababa University in 1950. Historically, these institutions have operated under a centralized governance structure that has consistently limited their independence (University World News, 2023). Despite various legal frameworks advocating for autonomy—such as the 2019 Higher Education Proclamation—the implementation of these policies has often been inconsistent due to ongoing governmental interference (Capital Ethiopia, 2024). This interference manifests in various forms, including stringent oversight over administrative decisions and curriculum development, which undermines the intended autonomy of universities (Kifle, 2022).

As noted by the Ethiopian Ministry of Education, while universities are granted some level of self-governance, they remain subject to government regulations that restrict their operational freedoms (Capital Ethiopia, 2024). The gap between policy and practice reveals significant challenges; for instance, many universities lack the authority to determine student admissions or develop curricula tailored to local needs (University World News, 2023). Consequently, while formal recognition of autonomy exists, the practical realities hinder universities’ ability to operate independently and effectively respond to academic and societal demands.

The observation results show that, according to university meeting minutes, most decisions still required approval from higher governmental authorities. This centralization was particularly evident in budget allocations and hiring processes, further reinforcing the lack of administrative autonomy (Observation, 2023).

Supplementing the above, Interview results confirmed that:

The quest for autonomy within Ethiopian universities has been a long-standing issue, tracing back to the establishment of Addis Ababa University in 1950. Historically, universities in Ethiopia have operated under a centralized governance structure, which has consistently limited their independence. Despite the enactment of various legal frameworks advocating for autonomy, such as the 2019 Higher Education Proclamation, implementation has often been inconsistent due to governmental interference. As noted by Abebaw (2021), “Any gap between regulatory promises and realization will defeat the purpose of the current exercise and the long-term interests of the sector.” Furthermore, the Ethiopian Ministry of Education’s recent announcements regarding increased oversight have raised concerns about the future independence of these institutions (Capital Ethiopia, 2024).

On the other hand, focus group discussion participants highlighted that:

As articulated in a recent report, “Universities have always deplored the limitations they face in terms of exercising their full power and the unlawful interference from the government which disrupts their normal functions” (KII, Arbaminch, 2023). Furthermore, an interview with a university faculty member revealed, “We have seen many proclamations aimed at granting autonomy, yet in practice, the government’s oversight is pervasive” (Interview, 2024). This sentiment is echoed in the findings of Abebaw (2021), who emphasizes that governmental interference fundamentally undermines institutional independence.

Consistent with the above assertions, interview results attested that:

Recent developments indicate a tightening grip on university autonomy by the Ethiopian government. In June 2024, the Ministry of Education announced increased oversight over autonomous universities. The Education Minister asserted, “The fact that autonomous universities have their own guidelines does not mean that they operate without law,” indicating a persistent emphasis on governmental oversight despite promises of independence (Capital Ethiopia, 2024).

This shift towards tighter government control raises significant concerns among education experts regarding the future independence and competitiveness of Ethiopia’s higher education system. A higher education analyst noted, “The government’s decision to tighten control is alarming, as it goes against global trends where institutions are granted more independence to foster innovation and responsiveness” (Interview, Addis Ababa 2024). This regression undermines the foundational principles of higher education, where academic institutions are typically expected to operate with a degree of autonomy that fosters critical thinking and innovation.

On the other hand, political ideology significantly shapes university governance in Ethiopia. The appointment of key administrative positions is often influenced more by political affiliations than by meritocratic criteria. A higher education policy expert commented, “The political landscape heavily influences the appointments of faculty and administrative leaders, resulting in a lack of diversity and stifling innovation” (KII, Arbaminch, 2023). This dynamic not only threatens academic freedom but also compromises the integrity of academic institutions.

Expert from the Ministry of Education emphasized that an authorized university must possess both academic freedom and organizational autonomy: “An authorized university has a higher responsibility beyond conventional duties … having authority beyond academic freedom” (Interview, Addis Ababa, 2022). However, despite these proclamations, many institutions still face substantial state interference that limits their operational freedoms. A university administrator remarked, “While we are expected to be independent, the reality is that our governance is heavily dictated by the government” (Interview, Arbaminch, 2024).

Moreover, resistance to change is another critical barrier to achieving administrative autonomy. Many stakeholders within universities are accustomed to existing governance structures and may fear instability or job losses associated with reforms. An interviewee expressed, “There’s a sense of comfort in the status quo; people are afraid that changes could lead to their job losses” (Interview, Hawassa, 2024). This reluctance is compounded by bureaucratic inertia and complex administrative frameworks that hinder effective governance initiatives.

Supplementing the above assertions, Key informant noted that:

The situation in Ethiopia reflects broader global trends regarding university autonomy. Many countries have recognized the importance of granting greater independence to higher education institutions as a means to foster innovation and responsiveness to societal needs. However, Ethiopia’s unique historical and political landscape presents distinct challenges.

Global examples, such as the experiences of institutions like Oxford and Harvard, illustrate how institutional autonomy can lead to improved academic performance and resilience. These institutions benefit from diverse funding streams and robust governance mechanisms that allow for greater flexibility and efficiency. A comparative analysis reveals that Ethiopian universities could benefit significantly from adopting best practices in governance and funding, which would enable them to become more competitive on the global stage.

Thus, the potential challenges to administrative autonomy in Ethiopian public universities reflect a complex landscape shaped by historical legacies, political dynamics, and ongoing government control. Insights drawn from interviews reveal that achieving genuine autonomy requires addressing these multifaceted challenges through structural reforms and effective policy implementation.

While recent proclamations suggest a movement towards greater independence for universities, the reality remains fraught with obstacles that undermine both academic freedom and institutional effectiveness. A university faculty member poignantly stated, “We need a shift in mindset, both from the government and the institutions, to create a culture that values true academic independence” (KII, Hawassa, 2024). Addressing these issues will necessitate a concerted effort from all stakeholders involved—government officials, university administrators, faculty members—to cultivate an environment conducive to genuine academic independence and responsiveness to societal needs.

Consistent with the above findings, Principal-Agent Theory (PAT) and administrative autonomy justify and support the analysis of the challenges Ethiopian public universities face in gaining independence from centralized control. PAT examines the relationship between the principal (the government) and the agent (the universities), wherein the principal delegates authority but retains significant oversight. This theory helps explain why the Ethiopian government, as the principal, is reluctant to fully transfer decision-making powers to universities due to concerns about accountability, political stability, and maintaining national standards.

In the context of administrative autonomy, PAT highlights how universities are constrained by government regulations and political interference, limiting their ability to self-govern. The theory suggests that the government’s tight control over key administrative functions—such as hiring, governance structures, and operational policies—prevents universities from fully exercising autonomy. While universities act as agents tasked with managing their internal affairs, their ability to do so independently is restricted by the government’s need to ensure that their operations align with national priorities (Shattock, 2019). PAT thus provides a critical framework for understanding the root of these administrative autonomy challenges, demonstrating how the tension between government oversight and university independence continues to impede the full realization of administrative self-governance in Ethiopian public universities.

Administrative autonomy is vital for universities to maintain a competitive academic environment by attracting and retaining qualified staff. This autonomy allows for flexibility in recruitment, remuneration, and career development, which are key to building a vibrant academic community.

Major Challenges:

4.3 Challenges Academic Autonomy in Ethiopia Public Universities

Academic freedom, often referred to as academic autonomy, is a fundamental principle that underpins the operations of higher education institutions. It asserts that academic personnel—faculty and researchers—should have the freedom to make independent decisions regarding their core activities, particularly in teaching and research. This autonomy is crucial for fostering an environment where scholars can pursue knowledge without undue influence or restrictions from external entities, including governmental bodies, administrative structures, or commercial interests (Nussbaum, 2021).

In similar vein, focus group discussion participants highlighted the struggle between granting universities autonomy and ensuring accountability is one of the challenges. While many agreed that autonomy could enhance decision-making and responsiveness, concerns were raised about the potential lack of oversight. One participant stated, “Autonomy should not mean independence from accountability; rather, it should be about institutions managing their affairs while adhering to national standards (FGD, Arbamich, 2023. Moreover, FGD discussion results, the major challenge will be the tension between standardized curricula and academic freedom. Several participants pointed out that universities are constrained by rigid national accreditation requirements, which limit their ability to innovate academically. “We want to design programs that respond to local needs, but the centralized accreditation system makes it difficult,” remarked one academic leader (FGD, Addis Ababa, 2023).

In the realm of teaching, academic freedom allows educators to explore diverse pedagogical approaches, develop curricula, and select materials that align with their scholarly expertise and values. This flexibility encourages innovation in the classroom and promotes a richer educational experience for students, who benefit from exposure to various perspectives and methodologies (Krause et al., 2020; Trowler, 2022). Similarly, observations in academic departments revealed limited flexibility in curriculum design. Faculty members expressed frustration over the rigid approval processes for new courses and programs, which stifled creativity and adaptability to emerging academic fields and local contexts (Observation, 2023).

Similarly, in research, academic freedom empowers scholars to investigate and address topics of their choosing, contributing to the advancement of knowledge in their fields. It supports the exploration of controversial or unorthodox ideas, which can lead to significant breakthroughs and societal progress. By safeguarding researchers from censorship or retaliation for their findings, academic freedom enhances the integrity and credibility of the academic community (Bennett et al., 2020; Association of American Colleges & Universities [AAC&U], 2022).

The discussion on academic autonomy, particularly in the context of Ethiopian universities, highlights significant challenges and considerations that must be addressed to safeguard the independence of these institutions. Based on the data gathered from key informants, it is evident that academic autonomy is crucial for universities to exercise control over their curricula, academic standards, and research agendas (KII, Arbaminch, 2023). However, the ongoing autonomization process presents a series of hurdles that could potentially undermine the essence of academic autonomy.

A central challenge identified is the tension between standardization and diversity in academic offerings. As Ethiopian universities move toward automation and seek to streamline processes, there is a risk that standardization could overshadow the unique academic approaches and curricula that institutions need to tailor to their specific contexts (KII, Hawassa, 2023). This concern echoes findings from previous studies, which also stress the potential suppression of academic diversity in favor of efficiency (Aboye, 2021; Getu, 2021). In their efforts to meet national and institutional benchmarks, universities may find their academic autonomy constrained, preventing them from addressing the diverse educational needs of their students and the community at large (Teferra, 2018).

Another critical issue is the implementation of the new higher education proclamation, which emphasizes various aspects of governance, academic affairs, and accountability. While the proclamation sets clear standards for financial audits and administrative responsibilities, it leaves key aspects of academic autonomy under-examined, particularly in terms of quality assurance and curriculum diversity. The two-year timeline set for the implementation of these reforms further compounds concerns, as it raises questions about whether institutions will have the time and resources to fully adapt without compromising their autonomy (Aboye, 2021).

The study participants pointed to quality assurance as another significant challenge. While academic autonomy allows universities to establish their own standards, the lack of centralized oversight could lead to inconsistencies in the quality of education across different institutions. This variability may pose challenges in terms of accreditation and the recognition of degrees both nationally and internationally (Interview, Hawassa, 2024). This issue is especially pertinent in Ethiopia’s higher education system, where the rapid expansion of universities has placed immense pressure on traditional governance and oversight models.

Technological dependency further complicates the autonomy debate. As universities integrate automation technologies into their academic and administrative processes, they may become overly reliant on specific platforms and tools. This dependency could limit their flexibility in curriculum design and research methodologies, ultimately restricting their ability to innovate and pursue diverse academic goals. Informants highlighted that such technological constraints could diminish the freedom that academic autonomy is meant to provide (Interview, Arbaminch, 2024).

The relevance and responsiveness of academic programs also emerged as key considerations. With Ethiopia’s diverse socio-political landscape, maintaining academic programs that reflect the country’s needs while preserving student diversity is a complex task. This challenge is compounded by the government’s growing difficulty in regulating the expanding number of higher education institutions. Universities are thus faced with the dual responsibility of fostering academic freedom while ensuring that their programs remain relevant and inclusive (Interview, Addis Ababa, 2023).

The expansion of higher education in Ethiopia has brought both opportunities and risks. On one hand, greater institutional autonomy holds the potential to improve the quality of education, research, and community engagement. On the other hand, the challenges outlined—standardization pressures, quality assurance gaps, technological dependence, and governance constraints—pose serious threats to the effective realization of academic autonomy. Addressing these issues requires universities to adopt adaptable governance structures, encourage stakeholder engagement, and foster ongoing dialogue to ensure that autonomy strengthens, rather than weakens, the quality of education.

Thus, while academic autonomy in Ethiopian universities is seen as a vehicle for innovation, excellence, and institutional resilience, its full potential remains hindered by various challenges. A careful balance between automation and autonomy, diversity and standardization, and flexibility and accountability is essential to empower universities to thrive in a rapidly changing academic environment. Only through robust governance mechanisms and collaborative decision-making processes can academic autonomy be truly realized and sustained.

Previous research emphasizes the fundamental role of academic autonomy in fostering institutional innovation and quality education. For instance, Belgaroui and Hamad (2021) argue that autonomy allows universities to make strategic decisions independently, which is crucial for their ability to develop contextually relevant curricula, research agendas, and academic standards. However, studies also show that academic autonomy often comes into tension with governmental control, especially in countries where education is seen as a critical tool for national development. This tension reflects similar concerns identified in this study, where the Ethiopian government’s new higher education proclamation raises fears of excessive standardization and the suppression of diversity in academic offerings (Aboye, 2021).

In line with these findings, Teferra (2018) argue that while efforts to improve efficiency through standardization are necessary, they often come at the cost of institutional autonomy. Their research shows that universities in Ethiopia and other African countries frequently struggle to maintain the balance between adhering to national standards and preserving their unique academic identities. The concern that automation could drive uniformity in academic programs, thereby limiting universities’ ability to address local needs, is a recurring theme in both past studies and the current findings.

The issue of quality assurance, another significant challenge raised in this study, has also been highlighted in earlier research. Aboye (2021) and Getu (2021) stress the difficulties associated with ensuring consistent educational quality across decentralized and autonomous institutions. Without adequate oversight mechanisms, the risk of disparities in academic rigor and the quality of instruction increases, potentially undermining the credibility of degrees awarded by autonomous universities. This aligns with the concerns expressed by key informants in this study, who emphasized that the lack of centralized quality assurance could lead to accreditation and recognition issues both nationally and internationally (KII, Hawassa, 2024).

Moreover, past studies highlight the risks associated with the technological dependency of universities. As automation becomes more prevalent, the flexibility and innovation in academic programs may be constrained by the limitations of the technology used. Similar to the current findings, previous studies have pointed out that over-reliance on specific automation platforms can reduce universities’ ability to pursue diverse research agendas and curricula that do not align with the capabilities of the tools at hand (Teferra, 2018). This challenge is especially pertinent in Ethiopia, where technological infrastructure is still developing, and universities may struggle to keep up with the demands of modern automation tools.

In terms of governance, the rapid expansion of Ethiopia’s higher education sector has put immense pressure on traditional governance models, as highlighted in both this study and earlier works. According to Teferra (2018), the proliferation of universities in Ethiopia has made it increasingly difficult for the government to effectively regulate the sector, leading to governance challenges that undermine institutional autonomy. This study echoes those findings, with key informants pointing out that the rapid growth of higher education institutions has led to governance strain and has highlighted the need for more adaptable and flexible governance frameworks (Interview, Arbaminch, 2024).

Consistent with the above findings, Institutional Theory best fits the analysis of challenges to academic autonomy in Ethiopian public universities. This theory explains how universities are shaped by external pressures, formal structures, and cultural norms, which can either support or constrain their academic independence. In the context of Ethiopian universities, academic autonomy refers to the ability to independently determine curricula, research agendas, and quality assurance processes without external interference.

Institutional Theory highlights how academic autonomy is often limited by government-imposed standards, accreditation bodies, and international benchmarks. These institutions impose rigid frameworks that universities must follow to maintain credibility and compliance. As a result, Ethiopian universities face challenges in innovating or tailoring academic programs to their specific contexts, as they are required to conform to national education policies and quality standards. The theory also points out how deeply embedded cultural and bureaucratic norms can hinder efforts to break away from these centralized academic controls (DiMaggio & Powell, 1983).

Thus, Institutional Theory helps explain why Ethiopian universities struggle to achieve full academic autonomy, as they are constrained by both formal governmental structures and the institutionalized norms of higher education governance. It underscores the tension between the desire for academic freedom and the need to meet external expectations, highlighting how these external pressures shape the academic decisions universities make.

Academic autonomy is fundamental for universities to develop and manage their educational programs, ensuring that they can innovate and adapt to societal needs. This autonomy allows institutions to control admissions, program design, and quality assurance measures, thus shaping their academic identity.

Major Challenges:

4.4 Challenges Financial Autonomy in Ethiopia public Universities

Financial autonomy for universities refers to their capacity to generate and manage independent revenue streams, allowing them to ensure sustainability without over-reliance on government funding. Key informants underscored the importance of financial autonomy for the sustainability and growth of universities, stating that it enables efficient resource allocation, investments in infrastructure and technology, and the pursuit of strategic partnerships that enhance academic programs and research initiatives. One informant articulated, “By managing our finances independently, we can ensure fiscal responsibility while pursuing our mission of providing accessible and high-quality education to our students” (KII, Arbaminch, 2023). This perspective aligns with the literature emphasizing that financial independence is critical for enhancing institutional effectiveness and adaptability.

FGD participants expressed concern over the lack of financial autonomy, particularly the limited avenues for generating independent revenue. “Universities are overly dependent on government funding,” one participant explained. “This dependency makes it hard to explore alternative revenue streams and build sustainable financial models” (FGD, Hawassa, 2023).

Campus observations showed that universities had minimal engagement in revenue-generating activities beyond tuition fees. University enterprises, such as research consultancies and service provision units, were either underdeveloped or lacking entirely, indicating weak financial autonomy. In addition, observations of campus facilities highlighted infrastructural challenges, particularly in the maintenance of teaching and research facilities. Poor resource management was a recurring theme, with several buildings and equipment in need of repair, further limiting the capacity for universities to function autonomously (Observation, 2023).

The financial sustainability of Ethiopian universities, particularly Addis Ababa University, Hawassa University, and Arbaminch University, relies heavily on the budget allocated from the government. They have week and insignificant internal revenue generation experiences and strategies. Thought it is insignificant, these institutions employ various approaches to generate income, which insignificantly contributes to their operational budgets. Recent estimates indicate that Addis Ababa University generates approximately 50 million Ethiopian Birr (ETB) from internally generated revenues, while Hawassa University and Arbaminch University produce around 25 million ETB and 10 million ETB, respectively (Ethiopian Ministry of Education, 2023). The various strategies and sources for generating internal income are discussed below.

4.4.1 Distance Education Programs

A major revenue source for these universities is distance education programs, particularly in the social sciences. For example, Addis Ababa University reported that distance education accounts for approximately 35% of its total internal revenue (Addis Ababa University Financial Overview, 2023). The cost structure for distance education varies, with self-sponsored students paying between 40 to 55 ETB per credit hour, while government-sponsored students pay 50 ETB (World Bank, 2020). However, the nature of these programs limits the inclusion of practical-oriented courses, which may affect student enrollment and revenue potential.

Key informant interviews with university administrators revealed that while distance education provides a significant revenue stream, the universities face challenges in maintaining the quality and relevance of these programs. One administrator stated, “We need to innovate our curriculum and delivery methods to attract more students and improve our revenue from distance education” (KII, Hawassa University, 2023).

4.4.2 Short-Term Training for Organizations and Consultancy Services

Short-term training programs also contribute to revenue generation, albeit to a lesser extent. These programs typically focus on skills such as computer literacy and management. At Addis Ababa University, they account for about 5% of total revenue (Hawassa University Annual Report, 2023). However, there is significant potential for growth in this area. Administrators noted the need for enhanced marketing and diversification of training topics to attract more participants. Interviews with training coordinators highlighted the importance of aligning training offerings with market demand. A coordinator mentioned, “If we expand our training programs to include in-demand skills, we could significantly increase our revenue from this source” (KII, Arbaminch University, 2023).

Consultancy services are another underutilized revenue stream for these universities. Despite having qualified experts, revenue from consultancy services constitutes less than 5% of their internal revenue (Ethiopian Ministry of Education, 2023). The lack of institutional support and promotion for consultancy services limits their effectiveness. For instance, while Arbaminch University has established a consultancy bureau, Addis Ababa and Hawassa Universities have not yet institutionalized similar frameworks.

A key informant from Addis Ababa University commented, “There is a wealth of expertise within our faculty that could be monetized through consultancy, but we lack the organizational structure to make it happen” (KII, Addis Ababa University, 2023). This suggests a need for improved institutional frameworks to facilitate and promote consultancy services.

4.4.3. Revenue from Physical Facilities and from Registrar Office Services

Revenue from physical facilities, including workshops and agricultural lands, varies among the universities. Hawassa University’s furniture workshop, for instance, contributes approximately 20% of its total internal revenue (Hawassa University Annual Report, 2023). Furthermore, while all universities possess agricultural lands that can be utilized for revenue generation, Hawassa University excels in mechanized farming, contributing about 18% of its internally generated funds. Rental income from university facilities also serves as a revenue source. Addis Ababa University, for example, generates around 7% of its internal revenue from leasing spaces for conferences and events. In contrast, Arbaminch University could enhance its revenue generation by expanding its leasing strategies and promoting its facilities to external stakeholders.

Registrar office services, which include documentation fees, transcripts, and application fees, generate varying levels of revenue across the universities. In Arbaminch University, these services account for approximately 0.02% of total revenue, whereas they contribute about 6% at Addis Ababa University (Addis Ababa University Financial Overview, 2023). By enforcing fee structures consistently across all universities, these institutions could transform registrar services into a more reliable revenue source.

The internally generated revenue contributes insignificantly to the operational budgets of the selected universities. Addis Ababa University’s internal revenue accounts for approximately 13% of its recurrent budget, while Hawassa University and Arbaminch University contribute around 5% and 3%, respectively (Ethiopian Ministry of Education, 2023). This financial contribution highlights the pressing need for these universities to enhance their income-generating strategies to attain greater financial autonomy.

According to the World Bank’s Task Force on Higher Education and Society (2000), successful revenue diversification in universities requires a conducive legal framework, institutional capacity, and market responsiveness. In Ethiopia, universities are allowed to own property and engage in consultancy services; however, effective implementation of these opportunities remains a challenge.

The Ethiopian government has decentralized various responsibilities to public universities, enabling them to explore alternative funding sources. Despite this progress, significant barriers persist in realizing the full potential of financial autonomy. Interviews with university leaders emphasize the need for institutional support and strategic planning to capitalize on existing opportunities. One university leader stated, “Achieving financial autonomy is a long-term goal, but we must take concrete steps now to diversify our revenue streams” (KII, Hawassa University, 2023).

Study participants highlighted that:

Despite efforts to generate internal revenue, these universities have struggled to produce sufficient income to alleviate their dependency on government support. One of the key challenges in enhancing financial autonomy is the insufficient diversification of revenue generation strategies. Although these universities employ various methods—such as distance education, short-term training programs, and consultancy services—these initiatives have not yielded adequate income to substantially reduce reliance on government support (KII, Expert from Minister of Education, 2024). For example, while distance education contributes significantly to revenue at Addis Ababa University, it remains inadequate for addressing the institution’s comprehensive financial requirements (Jemal, 2023). Moreover, consultancy services, despite their potential for income generation, have been largely underutilized across these institutions, with revenues contributing less than 5% of internal income (Federal Ministry of Education, 2023).

Other studies indicate a critical need for strategic planning and implementation to improve revenue generation capabilities. Universities should consider exploring innovative approaches that expand training programs, increase the scope of consultancy services, and enhance marketing strategies for distance education. Additionally, fostering partnerships with industry stakeholders and leveraging faculty expertise can create further funding opportunities (World Bank, 2020).

Furthermore, the financial constraints experienced by these universities have notable implications for the quality of education and student access. Limited internal funding can hinder the development of essential infrastructure, faculty recruitment, and the availability of learning resources. Such financial limitations may ultimately compromise the educational experience for students, reducing the overall effectiveness of higher education institutions in Ethiopia (Tadesse, 2022).

However, the pursuit of financial sustainability presents several challenges. A primary obstacle is the limited revenue sources available to universities, which often leads to overdependence on tuition fees and government grants. This reliance can render institutions vulnerable to fluctuations in enrollment numbers and changes in government funding policies (KII, Hawassa, 2023). As previous studies have indicated, the challenges of transitioning to financial autonomy from government dependency are multifaceted. Getu (2021), Feleke (2014), and Gebru et al. (2020) identify the perceived low financial autonomy of Ethiopian public universities as a significant hurdle. Despite promises of increased independence, these institutions continue to experience substantial government control, which restricts their capacity to manage resources effectively and make timely, context-specific decisions.

Moreover, financial challenges are exacerbated by high administrative and non-instructional costs, poor management practices, and a lack of transparent procurement processes. Feleke (2014) argues that these issues not only contribute to financial inadequacy but also negatively impact the core missions of universities, such as teaching, learning, and research activities. Additionally, Aboye (2021) highlights that the shift toward greater autonomy within the public sector, aimed at reducing reliance on public funds, introduces further complexities. Universities often struggle to exercise their financial autonomy effectively due to managerial inexperience, fear of decision-making, and reluctance to assume necessary financial risks, which collectively hinder effective financial management.

In addition to these internal challenges, universities face stiff competition for funding from various external sources, including research grants, philanthropic donations, and corporate partnerships. Securing these funds necessitates significant investments in research capabilities and fundraising infrastructure, which can be particularly burdensome for institutions in developing countries. The ongoing operational costs and the necessity for state-of-the-art infrastructure can strain financial resources, potentially impacting investments in faculty development and student support services (Interview, Hawassa, 2023). Furthermore, while increasing tuition fees may appear to be a straightforward solution for revenue generation, this approach must be considered in light of its implications for affordability and accessibility, particularly for students from disadvantaged backgrounds. Achieving a balance between financial sustainability and equitable access to education requires careful consideration and innovative approaches to tuition pricing and financial aid.

Consequently, with financial autonomy comes the responsibility for transparent and accountable financial management. Establishing robust governance structures, financial controls, and oversight mechanisms is crucial to ensuring effective management of revenue in alignment with institutional priorities. Key informants contend that addressing these challenges requires proactive strategic planning, collaboration with stakeholders, and a willingness to innovate in revenue generation and financial management practices. Potential strategies include exploring alternative revenue sources, such as the commercialization of research outcomes, continuing education programs, and partnerships with industry and government agencies. Furthermore, fostering a culture of financial literacy among faculty, staff, and students can contribute to long-term financial sustainability (KII, Hawassa, 2023).

Investing in building institutional capacity for revenue generation, financial management, and entrepreneurial activities is crucial. Providing training and support for faculty, staff, and administrators to develop skills in fundraising, budgeting, financial analysis, and risk management will enhance the overall capacity of universities to achieve financial autonomy. Furthermore, forging strategic partnerships with industry, government agencies, non-profit organizations, and international institutions can leverage resources and expertise for mutual benefit.

Consistent with the above findings, Resource Dependency Theory (RDT) best fits the analysis of challenges to financial autonomy in Ethiopian public universities. This theory posits that organizations depend on external resources for survival and that their financial decisions are heavily influenced by these dependencies. In the context of Ethiopian public universities, financial autonomy refers to their ability to independently secure funding and allocate resources without being overly reliant on government support.

RDT highlights how Ethiopian universities face significant challenges in achieving financial autonomy due to their dependence on government funding, which is often insufficient and unpredictable. This reliance constrains their ability to make independent financial decisions and develop diverse revenue streams. As universities depend primarily on state allocations, they are subject to governmental priorities and budgeting processes, which may not align with their institutional goals (Pfeffer & Salancik, 2003). This situation often results in a reactive approach to budgeting, limiting universities’ capacity to invest in innovative programs, infrastructure, or research initiatives.

Furthermore, Resource Dependency Theory underscores the importance of developing alternative funding sources to mitigate financial constraints. However, Ethiopian universities often struggle to attract private investments, secure research grants, or foster partnerships with industry, further limiting their financial autonomy. The inability to diversify funding creates a cycle of dependency that inhibits operational flexibility and hinders long-term planning.

Thus, RDT provides a crucial framework for understanding the challenges of financial autonomy in Ethiopian public universities. It illustrates how their reliance on government funding shapes their financial strategies and highlights the need for universities to develop innovative revenue-generating mechanisms to enhance their financial independence and sustainability.

Financial autonomy is essential for universities seeking to strengthen their ability to manage resources, make independent strategic decisions, and respond effectively to emerging academic and infrastructural needs. Several aspects of financial autonomy, including negotiating project timelines, managing diverse funding sources, and controlling surplus income, are fundamental for enhancing institutional flexibility.

Major Challenges: