Ethiopia is an independent Federal Democratic Republic with a President as head of state and a Prime Minister as the head of government. The constitution was established in 1994, following the over-throw of the Mengistu military dictatorship in 1991.

Ethiopia is a federal republic under the 1994 constitution. The executive branch includes a president, Council of State, and Council of Ministers. Executive power resides with the prime minister. There is a bicameral parliament; national legislative elections were held in 2005. The judicial branch comprises federal and regional courts.

Political parties include the Ethiopian People's Revolutionary Democratic Front (EPRDF), Unity for Democracy and Justice (UDJ), Oromo People's Congress (OPC), Arena Tigay for Democracy and Sovereignty, Oromo Federalist Democratic Movement (OFDM), Coalition for Unity and Democracy Party (CUDP), the United Ethiopian Democratic Forces (UEDF), All Ethiopia Unity Party (AEUP), and other small parties. Suffrage is universal at age 18.

The EPRDF-led government of Prime Minister Meles Zenawi has promoted a policy of ethnic federalism, devolving significant powers to regional, ethnically based authorities. Ethiopia has nine semi-autonomous administrative regions (Tigray, Afar, Amhara, Oromia, Somali, Benishangul-Gumuz, Southern Nations (SNNPS), Gambella and Harari) and two special city administrations (Addis Ababa and Dire Dawa), which have the power to raise their own revenues.