This article investigates how the Ethiopian People's Revolutionary Democratic Front's (EPRDF) attempt to build a developmental state influenced and shaped its relationships with the Ethiopian private sector. Through a case study of the chambers of commerce system in Ethiopia, the research reveals that the EPRDF's relationship to the private sector was characterised by the twin objectives of (1) curbing the private sector's power to prevent challenges to the EPRDF rule and (2) mobilising the private sector as part of the ruling coalition's developmental state programme. However, these twin objectives, were, in several cases, perceived as mutually exclusive by the EPRDF which, at times, led to a focus on control at the expense of developmental objectives. The ensuing lack of embeddedness posed problems for the operationalisation of the developmental state policies, reducing the EPRDF's ability to institutionalise collaborative relationships with the private sector.