Ethiopia's republican system places day-to-day executive leadership in the hands of the government, with a separate head of state performing constitutional duties. Abiy Ahmed serves as Prime Minister of Ethiopia and leads the national government.

Ethiopia is a federal parliamentary republic. Executive government is led by a prime minister or chancellor who depends on parliamentary support, while a president or comparable head of state performs mainly constitutional and representative functions. The federal design also gives constituent states or regions an institutional role in national governance.
Legislative authority is exercised through a bicameral national parliament. The two chambers share responsibility for passing laws and approving public finances, with their precise powers and methods of selection defined by the constitution. Parliamentary committees and plenary sessions provide formal mechanisms for scrutiny, while the courts are institutionally separate and may review government action as permitted by law.
Ethiopia is organized on a federal basis, so constitutional authority is divided between national institutions and constituent states, regions, provinces, or other federal units. Those subnational governments have their own legally protected responsibilities, while defense, foreign affairs, national finance, and other sovereign functions remain principally at the federal level. Political authority is exercised through the constitutional institutions described above, with elections, parliamentary confidence, or other constitutional procedures determining who holds office.