RECOGNIZING, the major role that ensuring operational freedom and self-governance in institutions of Higher Education in enhancing their effectiveness and competence, the country’s development, production of competent trained human resources, and the advancement of their international competitiveness plays;

WHEREAS, it has become necessary to reestablish Higher Education Institutions that are competitive internationally and that are places where knowledge is acquired through profound teaching-learning and research; innovative ideas and works flourish; quality and appropriate health and other services are provided extensively to communities via community engagement; where faculty, researchers, employees, and students are committed to human growth and development and who carry out their works with full freedom;

WHEREAS, it is believed that letting institutions of Higher Education expand the sources of their revenues and thereby increase their revenues would enable achieving national development goals;

WHEREAS, it has become necessary to grant autonomy to institutions of higher education to enable them to attain the objectives stated above and to put in place systems for better academic, financial and administrative freedom to existing institutions of higher education and to design mechanisms for the establishment of new ones;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows.