The Public Procurement Service (PPS) has announced an upcoming directive aimed at enhancing the role of clients in securing procured goods and services, following the recent amendments to the procurement proclamation. This directive is expected to be issued in the coming weeks.
This development was discussed during a meeting with suppliers and central government offices to review operations for the first half of the 2024/25 budget year.
The PPS also emphasized its ongoing implementation of the electronic government procurement (eGP) system, a crucial initiative designed to modernize procurement processes and combat illegal activities.
Asmare Yigezu, the Director General of PPS, acknowledged that while the transition to eGP has faced initial challenges, it is a significant advancement in improving transparency and efficiency.
“We had planned to manage even more procurement during this period, but our limited experience with the new system slowed us down. Last year, we barely utilized the modern procurement scheme due to our unfamiliarity with it,” Asmare explained.
He also addressed concerns regarding delayed payments by some public offices for services or products received, expressing optimism that the new directive will help resolve these issues.
The forthcoming directive, expected to be issued by the Public Procurement and Property Authority within a month, will introduce call-off contracts.
These contracts will enable individual public offices to directly manage their procurement of commonly used items, while the PPS will oversee the process as the higher authority.
“The new directive will allow clients to communicate directly with suppliers for commonly used items, thereby reducing waste and minimizing delays in supply or payment,” Asmare told Capital.
The directive, which has undergone more than three years of revisions, is set to transform the public procurement system. This follows the ratification of a new proclamation last year, which amended the 2009 “Procurement and Property Administration Proclamation 649/2009.”
The updated proclamation aims to align Ethiopia’s procurement practices with international standards and improve the country’s procurement rating.
State-owned enterprises (SOEs), including Ethiopian Airlines, Ethiopian Shipping and Logistics, and Ethio Telecom, have expressed concerns about the applicability of the proclamation, particularly in relation to their competition with private sector players.
These concerns are anticipated to be addressed in the upcoming directive.
In the first six months of the 2024/25 budget year, the PPS successfully executed procurement worth 3.2 billion birr for central government offices and universities. Notably, all framework agreement procurements during this period were carried out through the eGP system, marking a milestone in the modernization of Ethiopia’s procurement processes.
Asmare acknowledged that although the PPS was intended to lead the adoption of the eGP system, delays linked to inadequate handling by previous leadership hindered its implementation.
He underscored the system’s significance in tackling challenges associated with framework agreement procurement, despite facing initial operational obstacles. “The eGP system was not originally designed with these specific procedures in mind, which led to some difficulties,” he noted.
Looking forward, Asmare expressed confidence that the new directive will address most existing issues in the public procurement system.
The eGP system is expected to streamline processes, reduce inefficiencies, and enhance accountability. As the PPS adapts to the new system, it aims to expand procurement activities and improve service delivery to government institutions and higher education facilities nationwide.
The shift to electronic procurement signifies a major transformation in Ethiopia’s public procurement landscape, aligning with global best practices and promoting greater transparency in government operations. With the new directive, Ethiopia is well-positioned to make significant strides in modernizing its procurement system and ensuring efficient service delivery.
