PurposeThis research aims to explore stakeholder perspectives on Ethiopia’s occupational competency assessment and certification systems.Design/methodology/approachThe study utilized a mixed-methods strategy within a concurrent embedded design and adopted a pragmatic perspective. Data collection involved questionnaires, interviews, and focus group discussions, selecting respondents via purposive sampling for their significant experience and deep understanding of competency assessment. Analytical methods included descriptive and inferential statistics, as well as narrative techniques.FindingsThere is a generally positive perception of the value of competency assessments. However, the study finds several major limitations: inadequate candidate competency assessment, lack of skill gap analysis in TVET institutions for improved training, failure to maintain assessment standards, a high candidate-to-assessor ratio, and assessment tools that do not meet occupational standards. These issues show that the existing method misjudges TVET candidates' skills. To increase employer acceptance of competency assessments, the Center of Competence (CoC) agencies should integrate industry expertise, highlight their benefits, and emphasize the importance of training quality and career goals for candidates and trainers.Practical implicationsA study reveals that African nations like Ethiopia, Ghana, South Africa, Rwanda, Morocco, Benin, and Senegal have been implementing competency-based training (CBT) for around two decades, with support from countries like Canada, France, Belgium, Germany, Switzerland, Australia, Luxembourg, and Japan. However, the programs are often inconsistent and disorganized, with little private sector participation. There is a significant difference between the goals of quality assurance entities and the resources allocated. Although competency assessment is a fundamental part of CBT, there is a lack of research demonstrating its practice. Therefore, we conducted this research in Ethiopia, the second most densely populated nation in Africa. The results apply to other comparable nations implementing CBT programs (IIEP-UNESCO, 2021).Originality/valueThe research on stakeholders' perceptions of competency assessment is still in its early stages, with most studies focusing on training quality-related issues. This study expands on our knowledge of occupational competency assessment by analyzing perspectives from a comprehensive stakeholder perspective, considering contextualized assessment practices, addressing stakeholder needs, providing practical implications, and identifying future research directions. Furthermore, it offers valuable perspectives on developing competency-based education in Africa and other regions.