Private for-profit higher education has been rapidly expanding in developing countries worldwide since the early 1990s. This global trend has been particularly evident in Ethiopia, where only three public universities existed until 1996. By 2005, about 60 private for-profit higher education institutions had been founded in Ethiopia. This has led to mixed feelings among the Ethiopian public. While some laud the opportunities and advantages these new institutions bring, others are apprehensive that the quality of education might be compromised by an expansion motivated by monetary gain. This article sheds light on these paradoxes and provides suggestions for policy and practices.