This study examines the legislative framework of the Ethiopian higher education sector in light of the corresponding roles and expectations it assigns to and the distinctions it draws between public and private institutions of higher learning. The findings reveal that public and private institutions are equally expected to deliver similar responsibilities that largely pertain to the three major missions of teaching, research and community services. However, despite ascribing similar missions and roles, government legislations provide greater leverage and privileges to the public and inadvertently marginalize the private sector. The manners in which public and private institutions exercise their broadly designated roles show significant divergences that can impinge on the proliferation of the private higher education sector that is expected to assist government policy goals of increasing access to higher education in Ethiopia. It is argued that unless mechanisms are sought to redress the existing dichotomy, the national goals of promoting economic and human resource development through the participation of private higher education institutions will continue to face challenges.