Introduction and Historical Background
The notion of civil society organizations was introduced to the country following the promulgation of the 1960 civil code. Before the civil code came into effect, there were traditional community-based institutions resembling civil society organizations, such as Iquib, Idir, and Mahiber. However, the legislative introduction was necessary because traditional institutions could no longer adequately meet the growing needs of society. The civil code acknowledged civil, non-profit associations and provided provisions for their establishment and registration.
During the Ethiopian military regime from 1974 to 1991, the establishment and functioning of civil society organizations were actively discouraged and restricted. It was only after the downfall of the Derg regime that the 1995 FDRE constitution explicitly recognized the freedom of association, guaranteeing it as a democratic right for citizens (Article 31). Subsequently, in 2009, the Charities and Societies Proclamation No. 621 was adopted to regulate the civil society organization sector until 2019.
While the promulgation of the proclamation was viewed as a positive step for the operation of civil society organizations in the country, it significantly deviated from both constitutional and international standards, both in letter and in spirit. The inclusion of several restrictive provisions posed challenges for the existence and operation of CSOs. Notably, it prohibited foreign CSOs from engaging in human rights and political advocacy and imposed restrictions on funds from foreign sources. The limitations imposed on funding became a major obstacle to the very existence of CSOs.
As a response to the shortcomings of the 2009 proclamation and the increasing calls for legislative revision, Ethiopia took a significant step on February 5, 2019, by adopting a new law governing civil society organizations: Proclamation No.1113/2019. This new legislation replaces its predecessor, Charities and Societies Proclamation No.621 of 2009.
Proclamation No.1113/2019 introduces a range of progressive changes, expanding the right to freedom of association to align with the standards enshrined in the constitution and international instruments.
2.1 The meaning of Civil Society Organizations (CSOs) under Ethiopian Law.
The concept of civil society organizations (hereinafter referred to as CSOs) is distinctive due to two key characteristics in most legal systems: establishment for nonprofit purposes and formation by individuals with a common purpose and interest. Similarly, under the Ethiopian CSOs proclamation, CSOs are defined as any non-governmental, non-partisan, not-for-profit entity established by two or more individuals on a voluntary basis and registered to carry out legally recognized activities (Article 2(1) of Proclamation Number 1113/2009) (hereinafter referred to as the proclamation). CSOs are non-governmental organizations; they do not form part of governmental administration.
2.2 Recognized forms of CSOs under the Ethiopian Law
The Proclamation acknowledges four primary legal forms of civil society organizations:
A. Local organization: This can be established by Ethiopians, foreigners residing in Ethiopia, or a combination of both.
B. Foreign organization: Referring to non-governmental organizations formed under the laws of foreign countries and seeking registration under the laws of Ethiopia.
C. Charity organization: Referring to organizations established with the aim of working for the interests of the general public or third parties.
D. Professional organization: Formed based on a specific profession with the objective of protecting the rights and interests of its members.
2.3 Establishment requirement of CSOs
Article 16 of the proclamation outlines the governing principles for the establishment of CSOs, clearly stating that CSOs may not be established for the purpose of engaging in profit-making activities or distributing profits to their members. Regarding the timeframe, CSOs can be formed for a definite or indefinite period. Membership for any form of organization is voluntary, and any person has the right to become a member as long as they fulfill the criteria set out by the organization. The organization is free to determine the criteria for membership. Furthermore, the same provision asserts that the internal administration of the organization shall be based on democratic principles, non-discriminatory, and neutral.
Documentary requirements for the establishment of CSOs
As specified in Article 58 of the proclamation, the following are the essential documentary requirements:
A. Minutes of the formative meeting, including the names, addresses, and citizenship details of the founders.
B. Copy of the identity card or passport of the founders.
C. The chosen name of the organization and its logo, if applicable.
D. The stated objective of the organization and the intended sector of operation.
E. The designated region where it plans to operate.
F. The organization’s rules as approved by the founders.
G. The address of the organization.
In addition to the standard documents, the agency mandates additional documentation depending on the organizational structure of the CSO. For founders of professional associations seeking registration as a CSO in Ethiopia, proof of their educational or professional competence is required. Similarly, for applications from foreign non-governmental organizations, apart from the mentioned documents, a duly authenticated certificate of registration from the country of origin, an authenticated resolution from its competent organ to operate in Ethiopia, an authenticated power of delegation for the country representative, and an action plan for a minimum of two years are mandatory.
Upon completion of the documentary requirements and subsequent agency examination, the registration process will commence. Registration is a compulsory step outlined in the proclamation, and the agency is obligated to register an applicant and issue a certificate within 30 days from the date of application for local organizations and 45 days for foreign organizations, provided that all requirements are met.
2.4 Associated costs of establishment and license renewal of CSOs
Article 58(4) of the CSO proclamation stipulates that the applicant must pay a registration fee, the amount of which will be determined by the relevant regulation. As the draft Council of Ministers CSO regulation is currently under active consideration but not yet adopted, fees will be paid according to the annexed schedule on Regulation No. 168/2009. Consequently, local civil society organizations are required to pay 500 Ethiopian birr, and foreign CSOs will be charged 300 USD. The renewal fee for local civil society organizations is set at 400 birr.
3. Regulation of CSOs
The Agency for CSOs Regulation operates as a distinct entity, accountable to the Ministry of Justice. Its establishment is aimed at fostering an environment conducive to the full exercise of the freedom of association as enshrined in the constitution. The agency is tasked with overseeing CSOs to ensure they fulfill their registered objectives and supporting organizations in establishing robust internal governance systems to guarantee transparency, accountability, and active participation.
Crucially, as a regulatory body, it is empowered to:
A. Register CSOs.
B. Provide support and facilitate their activities.
C. Monitor and supervise organizations to ensure compliance with the law.
D. Examine the activities and annual reports of organizations.
E. Assist organizations in establishing a clear system of internal governance and self-regulation for transparency and accountability.
F. Collaborate with relevant government agencies to prevent money laundering and the financing of terrorism.