Skilled Manpower Shortage in Ethiopia's Interest-Free Banking: Causes, Impacts, and Solutions

AbstractThis article investigates the shortage of skilled workers in Ethiopia's Islamic banking sector, concentrating on the underlying causes, consequences, and potential remedies. Individuals who want to succeed in Islamic banking require a combination of formal education, professional certifications, and practical experience, but the sector is struggling to meet these demands. This study takes a qualitative case study approach, collecting data through semi-structured interviews with six unit managers and four senior officers from various banks in order to identify the key drivers of the manpower shortage. The findings show that educational, institutional, and market-related issues are central to this shortage, reducing both organizational efficiency and overall economic development. The paper also discusses how the shortage affects financial resilience and sustainable growth. To address these issues, the study proposes targeted solutions such as educational reforms, strengthened industrial alliances, and policy changes. This study ultimately intends to give stakeholders with actionable information to improve workforce development and financial stability in Ethiopia's Islamic banking sector.