There is a global challenge to retain qualified beginning teachers across the school system. In the first 10 years of entering the profession, a large number of beginning teachers exit altogether. While high-income countries have been designing policies and discussing effective ways to retain beginning teachers, the African share of such deliberation is scanty. Using Mason and Matas' (2015) four-capital teacher retention model (structural, social, psychological and human capital) as a conceptual framework, we studied the predictors of retention of beginning teachers in Ethiopia. A questionnaire designed on the basis of the tenets of the conceptual framework was used for the data collection. In total, 204 beginning teachers who had graduated from elite teacher training institutions were recruited for this study. The data were analysed using t-tests, analysis of variance and structural equation modelling to estimate the strengths of the relationships and direct logistical and linear regressions. The results show a positive relationship between the four indicators and the demographic variables, such as gender, pre-service training, access to professional development, level of teaching and living with family in the community, which provided additional insight into teacher retention. We discuss the need for a multifaceted approach to retaining beginning teachers in Ethiopia as well as other implications.