This article was first published on the 42nd Edition of our magazine, released June 2025
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In a shock move, Addis Ababa’s education cabinet has cleared the way for private schools to add up to 65% to their tuition fees for the 2018 school year. In practice, only one school was approved to go that high. Under regulation No. 194/2017, up to 1,227 of the city’s 1,585 licensed private schools can apply the full increase, but many schools urged the hikes to be 75% and above due to inflation. With just 10% having initially proposed 50%, the rest are pushing far beyond the official cap, blaming inflation and rising costs.
National Exam Results: Private vs. Public
How do private school graduates fare in national exams compared to their public school peers? The data is both surprising and sobering.
Overall, only 5.4% of students nationwide scored ≥ 50% on the 2023 Grade 12 exam.
Private-sector candidates lag: just 21% of first-time test-takers from private institutions passed, compared to a healthy 69% from public schools. Even for repeat exam takers, private still lagged (15% vs. 33%). So far, private schools aren’t delivering better results for the higher cost.
Pros and Cons of the Price Hike
Pros
Potential for improved resources: Schools claim the fee hike will go towards teacher training, new technology, and better infrastructure.
Differentiation through tiers: Schools are now categorized from Level 1 to Level 4 based on quality; higher tiers justify higher fees.
Regulation brings structure: The city’s official cap system (up to 65%) provides at least some clarity and control.
Inflation response: With costs rising across the board, schools argue this adjustment helps them survive and maintain operations.
Cons
Financial burden on families: Parents already struggling with rising living costs are now expected to pay significantly more for the same education.
No guaranteed quality improvement: Despite the extra cost, private schools continue to underperform in national exams.
Widening inequality: Middle-income and lower-income students may be priced out, creating an education gap between rich and poor.
Mental and emotional strain: More families may turn to tutoring, side hustles, or loans, impacting both student well-being and family stability.
Profit over performance will concern this hike is more about boosting school income than actual investment in student outcomes.
What This Means for Ethiopia
Educational justice dilemma. If better schools charge more without a guarantee of quality, social stratification ramps up. Heads up, regulators. The education bureau needs to monitor results, not just enforce fee ceilings.
Price‑quality linkage, without measurable gains (e.g., exam passes), appears as little more than a cash grab. What’s more, Public‑private rivalry intensifies. Public schools got a big credibility boost by outperforming private schools. This may drive more families into the public system, but public schools don’t have room for everyone.
Long‑term growth gambit meaning: Quality education drives the economy. If investments yield real results, higher fees could be a step forward; if not, we’ve just priced ourselves into inequality.
Bottom Line
A 65% (or even more) tuition hike isn't inherently bad, provided there's accountability and measurable educational payoff. Addis Ababa has a rare chance to turn private education into a genuine value add. But absent real results, especially given that private grads still underperform, we risk deepening inequality while padding pockets. Time for smart tracking and tough questions, are we getting smarter kids or just richer schools?
