Wednesday, November 12, 2025
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Procurement authority urges suppliers to get on board the eGP platform, before it’s too late

The Public Procurement and Property Authority (PPPA) urges suppliers to take haste measures with regards to signing on to the electronic government procurement (eGP) platform in order for them not to be locked out of the system when all public offices are added to the procurement system in the coming budget year.
Currently, 74 public offices have taken part in the modern procurement system to which the PPPA target to add the remaining offices in the 2023/24 budget year.
Haji Ibsa, Director General of PPPA, said that because of the partial implementation of eGP, suppliers didn’t take appropriate measures to fully register on the system.
“The lag was evident since suppliers were able to be involved on the procurement of other public offices, which are not part of the electronic procurement. At the moment, one public office can procure through eGP while the others, who are not part of the scheme, are procuring through the manual traditional means giving room for laxity of suppliers to join the system,” he said.

(Photo: Anteneh Aklilu)

“But when we include the remaining offices there will be no chance for traditional procurement. So we urge the supplier to join the platform if they want to continue providing their services,” the Director General added.
Currently about 8,000 suppliers are registered through the eGP portal; however, there are about 30,000 suppliers.
“So far we have less than 50 percent of suppliers registered on the eGP but when the remaining public offices get on board, suppliers will be forced to register on the new system,” Ibsa elaborated.
The new system is stated as a modern scheme for public procurement and will carry out its works swiftly with ample competition and lack of misdemeanor.
The scheme was originally introduced as a pilot about two years ago courtesy of nine public offices.
This budget year, the PPPA has rolled out the eGP to 74 public offices and so far over 1080 tenders and purchases have been published on the locally developed portal.
According to the plan, by the end of the budget year, about 490 billion birr worth of procurement will be undertaken through the eGP.
In the coming budget year, the public offices that will conduct their procurement procedures through eGP are said to be about 169.

ESL devices strategy for global markets breakthrough

The Ethiopian Shipping and Logistics (ESL) eyes local and international breakthrough as a new strategy is under works to expand its operation on new verticals. With the logistics enterprise in recent weeks having welcomed new leadership at the helm, the new boss has promised to keep the growth trajectory and staff handling as they were.

(Photo: Anteneh Aklilu)

Berisso Amallo who is the incumbent CEO of ESL, replacing the long serving logistics guru Roba Megersa, said that the enterprise is currently carrying out a strategic plan that will specify the public enterprise’s growth in the coming years.
“We are on the way to accomplish the strategic plan that was designed years back. We are now designing a new map that will define our future path,” he stated during his first press conference as a CEO of ESL, the sole flag carrier in the continent and multimodal monopoly in Ethiopia.
“We are now concluding a new strategic plan. When it is approved and comes to effect, we will have wide operations than the current status,” Berisso said, adding, “Our route will expand to Europe, middle and eastern gulf countries, India and other destinations.”
Expanding technology based services and expanding owned vessels are also strategies that ESL targets to deploy in the near future.
According to Wondwossen Kassa (Cap), Deputy CEO of ESL, the coming of new vessels will allow ESL to expand its operation and will be pivotal to its strategy going forward.
“With these new big size vessels, we shall have voyage to new routes like Europe, Australia and other continents besides the existed lines we operate,” he added concurring with the CEO’s statements.
As Wondwossen further elaborates, the details of the new strategy, which is currently concluded, will be disclosed when it receives approval from the board of directors. Nonetheless, he pointed out that the strategy targets to increase accessibility and considers changing the sector to attain big goals as a more profitable enterprise, “Our area, Indian Gulf and East African Coast has a gap on container feeder service, so if we invest more and increase our container ownership in terms of type, number and size we shall tap this huge benefit. If Djibouti’s SGTD, a container terminal, make minor adjustments at its facility we shall also expand our operation jointly with the partnership of Djibouti port operator as a feeder hub in the region.”
“We believe that our bulk vessels should work in destinations like America, Europe and Australia, so we are working to meet this vision,” Wondwossen added.
Siraj Abdulahi, Deputy CEO for Maritime Service at ESL, said that in the budget year that started July 2022, the operation has expanded in different ports of the region, “We are currently fully serving the Somaliland population through Berbera Port.”
Regarding capacity building and expanding skilled labour, ESL has also projected to expand its verticals on that front.
The CEO similarly highlighted that in terms of skilled labour, ESL academies will have big stake in the success of capacity building.
As Berisso explains, the aftermath of COVID 19 and Russia-Ukraine conflict has continued to be a bad repercussion for the sector and has likewise affected ESL’s business much like other actors affected globally.
Even though there are serious challenges on the sector, the CEO said that in the first nine months of the 2022/23 budget year, the enterprise has handled the operation of over 4.13 million tons that is 101 percent of the target.
Berisso said that in the stated period, ESL targeted to generate close to 35 billion birr as revenue, while the actual achievement clocked in at almost 31 billion birr or 88.3 percent of the target.
“Regarding profit before tax, the enterprise has secured over 4 billion birr that is 108 percent of the target,” he added.
The CEO said that his leadership style will be inclusive. He said that he has met with staff about the operation in the enterprise and the next forward moving journey, “We will exercise a modern leadership style that is aligned with the 21st century and as per the government strategy.”
He hinted that the new structural change will be based on educational readiness and experience, to steer the logistics enterprise to newer heights.

Trade Ministry lifts restrictions imposed on Hararge Khat

Ministry of Trade and Regional Integration (MoTRI) lifts restrictions imposed on the supply of the stimulant leaf, khat, from eastern Ethiopian producers to the local market.
The ministry which undertook a detailed study to implement its restrictions on the way to tackling the illicit khat trade imposed a system to limit the locally sold product supply which came to effect on January 2023.
In the new system, the product sourced from eastern Ethiopia, which is a long established hub for production of the stimulant and market for the export commodity faced limited supply which led to a lot of contraband activities to ensue.
In a bid to settle the issue, MoTRI has now issued a letter which has been sent to the Customs Commission, to relinquish the applied restrictions as from April 21.
As per the system that was applied on January 27, 2023, it emplaced a quota for the supply of local market on the aim to boost the legal export market and to make farmers beneficiaries of the trade.
However, the latest announcement stated that the system has created a repercussion on farmers’ market.
“Due to that the government has decided that the scheme that was applied in January must be lifted starting from April 21,” the letter that was signed by Kassahun Gofe, State Minister of MoTRI, reads.
It added that as per the decision the khat export trade system and a quota of daily consumption at border areas are now to be carried out as per the prior ways of doing business in contrast to the system imposed in January.
Khat products from eastern Ethiopia that is popularly known as Hararge khat, which is mainly supplied to Somalia and Djibouti consumers.This product is arguably one of the major hard currency resources for the country, while in the past few years the market and revenue was disrupted due to illegal activities.
Those who abuse the trade are smuggling khat to bordering countries, while the commodity was predestined to be originally sold for local consumption.
To curb the recently emerging challenges, MoTRI has now introduced several controlling mechanisms and taken legal actions including revoking export license for some of the traders who are alleged on the involvement of illegal activity.
However the case is still said to pose a challenge and has had its toll on the hard currency generation from the sector.

“We are not a pyramid scheme business,” ETCARE declares

Local beauty product producer and supplier, Etcare Beauty Products Sales Pvt. Ltd, defends its line of business and states that it is by no means a pyramid scheme. The skin and health care provider has further taken inquiry steps for the legal clarification of the difference between direct sell and a pyramid scheme as pertained in the country’s trade proclamation.
The proclamation in question is the Trade Competition and Consumers Protection Proclamation No. 813/2013 which at the time of ratification banned pyramid scheme sales in Ethiopia owing to the number of companies which were applying pyramid schemes surging.
“It is prohibited applying or attempting to apply a pyramid scheme of sale, based on the numbers of consumers, by announcing the granting of a reward, in cash or in kind, to a consumer who purchases goods or service or makes financial contribution and where other consumers through his/her salesmanship purchase the goods or the service or make financial contribution or enter into the sales scheme,” the proclamation clearly highlights.

(Photo: Anteneh Aklilu)

Etcare on its end argues that the proclamation has identifiable gaps in defining a pyramid scheme and direct sells, and the clear difference between the two.
“Direct sales refer to the process of selling products directly to consumers through a network of independent sales representatives, while pyramid schemes involve recruiting participants who are promised payments or rewards for enrolling others into the scheme, rather than for selling products or services,” said Matios Meba founder and managing director of the company.
“Organizations that follow the direct sales system have a known and legally registered address and business license; they pay the appropriate taxes to the government. Those who follow the pyramid scheme, however, do not pay taxes to the government and operate in the air because their address is unknown and they do not have a legal license,” Matios further elaborated indicating that his company cannot be labeled as such since his company engages in producing and distributing locally manufactured beauty and health care products using local raw materials.
Moreover, as the managing director signaled, Etcare only pays commission for only those who sale lots of products not for those who brings members.
“Lack of clarification in the law is affecting our operation as people are taking our business as pyramid,” stated officials of the company.
As Solomon Abay, assistant professor at Addis Ababa university school of law explains, pyramid schemes are illegal but marketers are aware of this hence the business is often disguised as direct sell or multi-level marketing programs (MLM), “The difference between a pyramid scheme and MLM is that there is no real product that is sold in a pyramid scheme, and commissions are based only on the number of new individuals one introduces into the scheme. The main idea behind the MLM strategy is to promote maximum number of distributors for the product and exponentially increase the sales force. In the case of pyramid schemes, money is charged simply for enrolling other people into the scheme and no real product is actually sold. The difference between MLM and pyramid schemes is that MLM offers products whereas Pyramid schemes do not, commissions are paid on sale of products and not on enrollments, and company buys back inventory from participants at the time of termination.”
Solomon said that policy makers should set guidelines that help consumers discern legitimate plans from illegal ones.
“It is important for consumers to understand the difference between the two and be cautious of any opportunities that seem too good to be true.” Solomon added.
As the managing director indicated, Etcare which was established 10 months ago has so far created job opportunities for about 100 people and paid 10 million birr in taxes to the government in the last 10 months. It was also learned that the company has paid 50 million birr in commissions to the sales staff in the same period and has made the sales staff to issue licenses and pay taxes to the government.