Government Overhauls Ministerial Mandates as Cabinet Reshuffle Looms

Prime Minister Abiy Ahmed (PhD) has unveiled a major institutional overhaul of Ethiopia’s federal bureaucracy as he begins his new five-year term, proposing a significant realignment of executive mandates without expanding the overall number of cabinet seats. A draft proclamation submitted to the House of Peoples’ Representatives (HPR) keeps the total count of ministry-level institutions at 22, but reallocates responsibilities and renames key ministries to align the federal government with its updated policy priorities. 

Approved by the Council of Ministers during its regular meeting on September 28, the draft serves as the primary structural blueprint for the incoming administration following the June 2026 general election. It replaces the framework established under Proclamation No. 1263/2021, aiming to streamline overlapping duties, establish clearer institutional mandates, and improve inter-agency coordination across the executive branch.

Under the proposed legislation, four federal ministries undergo significant structural changes. One of such is the Ministry of Transport and Logistics. The logistics portfolio is separated from transport to create a standalone Ministry of Logistics, while the Ministry of Planning and Development transforms into the Ministry of National Strategy. Meanwhile, the Ministry of Tourism is reconstituted as the Ministry of Culture and Tourism, leaving youth affairs to pair directly with sports under the renamed Ministry of Youth and Sport.

This administrative shift follows PM Abiy’s swearing-in earlier this week after the ruling Prosperity Party secured victory in a June election marked by opposition boycotts. Attention has now turned to who will lead the reconfigured ministries, with several key leadership transitions already taking place. Former Finance Minister Ahmed Shide, who steered the country’s economic agenda for nearly eight years, has been elected Speaker of the parliament , while former Labour and Skills Minister Muferihat Kamil now heads the House of Federation.

Additional reassignments have further reshaped executive leadership. Chaltu Sani, former Minister of Urban and Infrastructure Development, has been appointed to lead the Federal Housing Corporation following the departure of former CEO Reshad Kemal, who was named Vice President of Oromia Regional State. Meanwhile, former Minister of Irrigation and Lowland Abraham Belay has been reassigned to head the Nuclear Commission.

These high-profile reassignments leave at least four ministerial positions currently vacant, with the new administration widely expected to undertake broader reshuffles across the remaining eighteen ministries in the coming days. Financial observers and international partners are watching the selection of the next finance minister particularly closely, as the appointee will inherit an economy undergoing critical foreign exchange reforms, complex debt restructurings, and ongoing negotiations with global financial institutions.