Mandatory Membership Plan Sparks Dispute Over Metropolitan Chamber's Autonomy

Jan 5 , 2025

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The Addis Abeba Chamber of Commerce, long regarded as a rare pillar of the private sector, is bracing for a general assembly in less than two weeks, an event that could redefine the institution’s identity and the degree to which it can speak freely for the city’s private sector. Founded more than seven decades ago, anchoring in voluntary membership, the Chamber is now at a crossroads. With proposed amendments to its bylaws, its revised constitution will compel all licensed businesses in Addis Abeba to sign on.

This radical approach risks turning a once-independent entity into a government-aligned institution.

The debate intensified at a press conference on December 23, 2024, when the Chamber's President, Mesenbet Shenqute, heralded a “radical transformation reform.” Praising the internal auditor, recently elevated to Deputy Secretary General for Resources & Innovations, for uncovering 23 alleged policy violations, she singled out resource misuse and unauthorised hiring practices as manifestations of the problems she claims to be remedying.

The findings, which have not been independently verified, prompted the creation of a reform team, which is now entering a second phase of restructuring.

Central to the restructuring process are proposals to drastically change the Chamber’s constitution, replacing its voluntary character with automatic enrollment. Chamber leaders say most of Addis Abeba's 483,000 licensed businesses remain on the sidelines, undermining the organisation’s legitimacy. They hope that imposing membership will expand the Chamber’s influence and representativeness.

Yet, the plan has sparked an outcry from longstanding members who see it as an affront to a longstanding principle enshrined in laws governing chambers of commerce. No less are legal experts unsettled, arguing that the proposed change violates the federal Constitution (Article 31), which protects the right to free association.

Opponents of the amendments draw parallels to practices sometimes observed in regional states, where membership in similar chambers is forced. Though widely seen as unlawful, these practices have spread with the blessing of leaders who compare them to policies under the Dergue regime, when chambers were systematically aligned with the government. Critics insist such moves rob business associations of their credibility, warning that a body forced to accept every business under legal compulsion would end up serving political interests over private-sector concerns.

The looming general assembly adds urgency to the dispute.

Initially set for January 3 and then postponed to January 11, the gathering was abruptly moved to the Adwa Museum, a change widely interpreted by critics as a bid to manipulate voting or facilitate outside interference. The Chamber’s board of directors, whose tenure expired in September 2024, has dismissed several senior officials, replacing them with junior staff seen as more likely to be sympathetic to external agendas.

Amid these shake-ups, fear is growing that non-members may influence the Chamber’s internal affairs, reinforcing suspicions of political meddling by government agencies. Dismissing this as a baseless fear would be unwise, though. Some leaders of the Ethiopian Chamber of Commerce, Addis Abeba Trade Bureau officials, and groups within the ruling Prosperity Party (PP) have been singled out for endorsing, if driving, the proposed transformation. Their involvement, critics say, shows an intent to consolidate influence over one of Ethiopia’s most prominent business groups.

For decades, the Addis Chamber prided itself on standing apart from government-aligned associations, upholding a robust model of volunteer-driven membership. By prioritising its constituents' commercial needs rather than the government's political priorities, it earned a reputation for authenticity that has been amiss in many corners of civil society. This reputation lies in jeopardy.

If the proposed amendments become a reality, sceptics contend the Chamber will be relegated to a shell of its former self, reminiscent of organisations under the EPRDF regime that nominally represented traders but ultimately followed the state’s lead. The fear is that adding hundreds of thousands of businesses under a mandatory framework, combined with the directors' recent personnel reshuffles, could lead to decisions favouring government objectives rather than the grassroots interests of local entrepreneurs.

In a last-ditch attempt to halt the amendments, legal experts advise longtime members to seek an injunction suspending the Board and appointing a caretaker administration until an inclusive general assembly can be held. Supporters argue this could ensure compliance with the Chamber’s constitution and restore some semblance of member-driven decision-making. Whether the courts would intervene in an organisation that has historically been left to manage its affairs independently remains an open question.

However, observers note that the broader challenge reflects a familiar struggle in the civil society scene. Groups that try to remain genuinely independent can face pressure from multiple fronts, including government entities eager to bring them under a more unified policy umbrella.

The Addis Chamber has weathered years of upheaval, including shifting political climates demanding associations' loyalty. It has repeatedly chosen the difficult path of maintaining a voluntary membership system and resisting overt political allegiance. Many local business owners saw this as a refreshing counterweight to state-led institutions, an arrangement that also boosted the Chamber’s credibility. Should mandatory membership take hold, that credibility could disappear, replaced by an organisation that is broad in numbers but narrow in genuine representation.

Emotions run high among the Chamber’s current and prospective members as the general assembly approaches. In private discussions and on social media forums, some vow to confront the Board at the assembly, pressing leaders to abandon the proposals in favour of a collaborative approach. Others advocate for overhauling the Chamber’s governance to end what they see as counterproductive meddling by outside interests. Several businesses could also consider legal remedies or official complaints to higher authorities.

Whether the Addis Chamber will endure as the country’s largest voluntary membership-based association, defending the interests of business owners who joined voluntarily, or become a top-heavy organ leaning toward government priorities is out for the jury. The institution’s future depends on the upcoming general assembly, where the competing forces of autonomy and control will collide in a decisive moment.

If dissenters block the amendments, the Chamber may preserve the autonomy that has defined it for decades. If not, its metamorphosis into a more tightly controlled structure could be a foregone conclusion that echoes far beyond Addis Abeba’s city limits and into the broader civil society.

The identity of the author has been withheld upon request.

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PUBLISHED ON Jan 05,2025 [ VOL 25 , NO 1288]

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