Foucault's work is full and rich in its conceptual insight for philosophers to work on. Among his works one of the most essential contributions for the philosophical concern is the one taken up as the basis for this paper that is "Power and Knowledge Nexus". Foucault discussed the relationship that exists between power and knowledge in terms of the response they have to social, political, medical and legal reality as a "discourse". The study was focused on this area, with the general objective of making situational analysis at three levels which are "Globalization" at world scale "African situation" at regional scale by examining present Africa both economically, politically and culturally and the idea of "Neo -liberalism in the Ethiopian Context" at country level. The study attempted to devise a three step approach setting out theoretical constructs, collecting relevant practical evidence that finest fit to the theory, and drew conclusions through interpretive perceptive by making critical analysis.