Neural retrieval methods using transformer-based pre-trained language models have advanced multilingual and cross-lingual retrieval. However, their effectiveness for low-resource, morphologically rich languages such as Amharic remains underexplored due to data scarcity and suboptimal tokenization. We address this gap by introducing Amharic-specific dense retrieval models based on pre-trained Amharic BERT and RoBERTa backbones. Our proposed RoBERTa-Base-Amharic-Embed model (110M parameters) achieves a 17.6% relative improvement in MRR@10 and a 9.86% gain in Recall@10 over the strongest multilingual baseline, Arctic Embed 2.0 (568M parameters). More compact variants, such as RoBERTa-Medium-Amharic-Embed (42M), remain competitive while being over 13x smaller. Additionally, we train a ColBERT-based late interaction retrieval model that achieves the highest MRR@10 score (0.843) among all evaluated models. We benchmark our proposed models against both sparse and dense retrieval baselines to systematically assess retrieval effectiveness in Amharic. Our analysis highlights key challenges in low-resource settings and underscores the importance of language-specific adaptation. To foster future research in low-resource IR, we publicly release our dataset, codebase, and trained models at https://github.com/kidist-amde/amharic-ir-benchmarks.