For many families in Addis Abeba, the new school year has brought an unwelcome surprise. Rapidly rising tuition fees at some of the city’s most prominent international schools have prompted parents to voice alarm and, in some cases, outright anger as they face the prospect that their children’s education could soon become unaffordable.

The tensions brought forth the need to maintain high-quality schooling in a country where the Birr’s value has been sliding, compelling many "international" schools to hedge their operational costs in dollars and other foreign currency denominations.

Flipper International School (FIS) has become one of the battleground schools between aggrieved parents and administrators, who are responsible for pleasing owners with bottom lines.



Founded in 1998 by educators and now operating five branches in Addis Abeba, the school was acquired last month by ADvTECH Group, a South African private equity firm. Among parents at FIS, discontent has been building over what they describe as inconsistent and unpredictable fee structures. However, the school's administrators say they are only adjusting to the volatile currency value. Yet, the tensions between parents and administrators grew so intense that the Parent-Teacher Association (PTA), representing 3,000 students at FIS, filed a complaint with the Federal Education Training Authority (ETA).

At the heart of the dispute is a debate over foreign currency pricing. Parents had been paying tuition denominated in dollars for some time, with an exchange rate locked in at 57 Br to the dollar. Subsequent to the liberalisation of the foreign exchange market in late July this year, FIS's management opted to move to an exchange rate of 74 Br to the dollar, raising the cost for parents. Many families say they were caught off guard, looking at combined annual bills that could rise by hundreds of thousands of Birr.

Meron Asfaw, a 48-year-old mother who enrolled her three children at FIS in 2021 in search of high-quality education, is one of the parents with misgivings. She said the schools demanded to quote in dollars soon after she enrolled.

“I'm afraid I won’t be able to afford it if it goes on like this,” Meron told Fortune, considering the school's initial exchange rate of 57 Br a tolerable compromise.

But when it jumped to 74 Br, her total payment climbed by nearly 63,000 Br for one term. She elaborated that her childrens' term fees had been a combined 3,700 dollars, equivalent to 211,000 Br at the old rate. The bill climbed to 273,800 Br under the new rate.


She questioned why authorities had tolerated dollar-based pricing all along.

“In what sense is that okay?” she wondered.



Meron could not reconcile the practice with regular public statements from officials insisting that the Birr should remain the main instrument for transactions. She believes regulators such as the ETA should ensure the school applies a transparent and fair rate.

Other parents similarly question the fairness of charging tuition at fluctuating exchange rates. Another FIS parent, Tiblets Gebregziabher, is a mother of twins in first grade and pays 1,000 dollars per term for each child. She says the new exchange rates might soon stretch her household budget beyond its limit, but she feels she has few options for relocating her children.

“I've no choice but to keep paying as long as I can afford,” she said.

She worries that further depreciation of the Birr could move tuition beyond her reach.


Adding to the parent-led complaints is a belief that FIS has been charging varying amounts for the same grade level under different pricing categories. Parents cite several “fee categories” in which a grade eight student in category four or five pays around 100,000 Br per term, while a student in category one pays 35,000 Br, with categories two and three set at 40,000 Br and 48,000 Br, respectively. The parents’ association considers these disparities a violation of the principle of equity and has demanded that the school adopt uniform pricing for all students in the same grade.

The Federal Education Training Authority, which regulates private, international, and community schools, intervened when the dispute escalated. Its officials told FIS administrators to suspend the tuition increases until further notice. Parents and school administrators were directed to present separate proposals outlining acceptable fees, and the ETA pledged to settle on a rate that both sides could accept.


FIS General Manager, Getaneh Asfaw, insisted the school has not imposed a mid-year fee increases, arguing that it only applies the fees approved by regulators at the beginning of the school year. He attributed the higher burden on parents to the latest exchange rate of the Birr, which has caused operating costs to rise. According to him, FIS pays for campus rentals, curriculum accreditation, and expatriate staff salaries largely in foreign currency.

The school settled on an exchange rate of 74 Br, even though the official rate was above 125 Br last week. Getaneh argued that this policy effectively saved parents money compared to what they might pay elsewhere.

“Denominating school fees in foreign exchange is a common practice in international schools,” he said.

Yet, the ETA has instructed the school to unify its payment system, at least within each grade, so that parents do not pay vastly different amounts based on separate categories.

“Quoting fees in foreign currency is illegal, even if parents initially agreed to it,” said Wubeshet Tadele, deputy director of the ETA.

He acknowledged, however, that the arrangement resulted from an earlier agreement between parents and the school to pay in forex when the exchange rate was more stable. According to Wubshet, now that the situation has turned contentious, the Authority can only intervene if disagreements arise.

"If parents and schools have reached a consensus, the dispute over currency might remain off the regulator’s radar," he disclosed.

Federal authorities' concern over "dollarisation" by international and community schools is not new. In 2022, the Ministry of Education warned 26 such schools against quoting school fees in forex, calling the practice a violation of laws governing the legal tender. Yet, enforcement has proved difficult, especially when schools and parents initially concur in setting dollar-based rates. The recent shift in currency values, where the official exchange rate of the Birr lost value by 495pc to the dollar since 2016, though schools sometimes apply a lower internal rate, has surfaced new disputes, especially as inflation remains high.


Tuition fee pressures have also surfaced at other schools, including Kelem International School. Parents filed similar complaints, according to ETA’s Wubeshet, who declined to give details. Kelem’s management did not respond to requests for comment. However, the British International School (BIS) has reportedly revised its rates, applying an exchange rate of 93 Br to the dollar. According to a teacher at BIS, the new fees compelled at least two ninth-grade students to quit.

Observers from academic circles say the situation might have been averted had schools, parents, and regulators engaged in more rigorous consultations.

“Tuition increases should be made only upon consensus with parents,” said Jemal Mohammed (PhD), a development economist and education researcher. “They should also be in line with improvements in school services and quality.”

Many parents say their frustration comes partly from feeling blindsided by fast-moving decisions that appear to track the dollar’s climb more than the school’s actual operating costs.

For macroeconomist Tewodros Mekonnen (PhD), the root cause is a long-held loss of confidence in the Birr. Businesses have regularly quoted prices in foreign exchange because they lack confidence in the absence of monetary authorities stabilising the exchange rate.

“I foresee the Birr exchange rate against the dollar may stabilise, and then schools will quote prices in Birr,” he told Fortune.

Until then, parents say they will watch how educational institutions handle tuition, praying that future adjustments come with more transparency and far less shock.



PUBLISHED ON Jan 03,2025 [ VOL 25 , NO 1288]


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