Prime Minister Hailemariam Desalegn resigned on Thursday after weeks of anti-government demonstrations and growing splits within the country's ruling Ethiopian Peoples Revolutionary Democratic Front (EPRDF) coalition.
With the EPRDF and its allies controlling every seat in parliament, it is unclear what difference Hailemariams departure will make, said prominent opposition leader Merera Gudina, chairman of the opposition Oromo Federalist Congress (OFC).
"What the people are demanding is fundamental change," Merera told AFP, saying that Hailemariams departure was a matter of internal party politics.
However, Merera said he was "cautiously optimistic," that Hailemariams departure could offer an opening for them.
"There are, after all, possibilities... to move forward," Merera said.
"The EPRDF as an organisation has a serious problem and really blocked the democratisation of the Ethiopian state and society -- and is really responsible for many of its crisis," he added.
Hailemariam will remain in office until parliament and the EPRDF coalition confirm his resignation from the most powerful post in Africas second most-populous nation.
Merera was released from jail in January, when the government began pardoning and dropping charges against hundreds of prisoners including many high-profile dissidents.
Hailemariam said it was a way "to improve the national consensus and widen the democratic platform".
The OFC chairmans release was a key demand of dissidents from the Oromo people, whose campaign of anti-government protests that began in December 2015 are seen as a key reason why Hailemariam resigned.
Earlier this week, young men wielding sticks and stones blocked roads leading out of the capital Addis Ababa and businesses shut in Oromia.
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