Ethiopian public universities have undergone successive policy reforms premised on expanded institutional autonomy, with the landmark University Autonomy Proclamation No. 1294/2023 constituting the most expansive formal autonomy regime in the country’s higher education history. Yet substantial evidence documents a persistent implementation deficit in which formally granted autonomy rights remain unrealized in practice. This systematic review pursues three integrated objectives: to systematically map and classify the dimensions of university autonomy formally granted by Ethiopian higher education policy, to critically analyze institutional capacity deficits that impede implementation, and to evaluate the nature of the policy-capacity mismatch while synthesizing evidence into a conceptual framework for sustainable autonomy implementation. Following PRISMA 2020 guidelines, a systematic search was conducted; 43 empirical and policy-analytical studies meeting full inclusion criteria underwent thematic and narrative synthesis. The review reveals four major autonomy dimensions in Ethiopian policy: legal-structural, financial, staffing, and academic, each formally codified yet functionally constrained by key capacity deficits including weak governance structures, limited financial management competencies, inadequate leadership readiness, and entrenched centralization norms. A uniformly high policy-capacity mismatch is documented across all four dimensions, with the financial autonomy dimension exhibiting the most severe implementation deficit. The autonomy-capacity mismatch in Ethiopian public universities reflects institutional, cultural, and political economy barriers requiring simultaneous capacity investment and policy devolution. The capacity-conditioned autonomy framework provides actionable guidance for policymakers, institutional leaders, and development partners navigating the critical implementation phase of Ethiopia’s 2023 autonomy legislation.
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