To improve the government’s procurement process Ministry of Finance (MoF) has begun implementing a pilot program on Electronic Government Procurement (EGP).
The government hopes this will improve the way they obtain equipment. The process has been also criticized by the partners like the World Bank, because it has been subject to corruption.
MoF says they have already purchased the network equipment they need additional hardware and software is in the bidding process. At the same time the experience of other countries that have better knowledge about electronic procurement has been looked at, according to HaJi Ibsa, Public Relation Head of MoF. They have already examined four countries’ experience.
About 70 percent of the government’s budget has flowed to procurement. Therefore, it’s concerning that it is one of the areas that experiences the most audit discrepancies. The Office of the Auditor General has reported many problems. First the EGP will be implemented in a pilot level during the current budget year in selected government offices.
The scheme would cut direct connection in the procurement process, while some challenges like skilled labour and related technological problems could become issues.
The government has stated that it is interested in expanding electronic trading and has even invited companies to start operating in the country. Alibaba has recently expressed an interest in starting its electronic market in Ethiopia.
To improve their ease of doing business ranking, public procurement is expected to be improved. Work in this area may be extended until 2020 since the World Bank will come up with new programs in this area.
The Ministry has tried to implement the Integrated Financial Management Information System (IFMIS) which is also designed to increase clarity in government offices. However, that program failed to meet expectations.
Since the implementation process, which has taken eight years so far, only 52 public offices have been integrated under IFMIS. However in the past budget year 78 additional offices started using IFMIS, which is an automated method that enhances efficiency in planning, budgeting, procurement, expenditure management and reporting in Ethiopian government offices, supported by international partners.
Electronic Procurement to improve audits
Addis’ homeless come from elsewhere
A recent study from the Addis Ababa City Administration Bureau of Labor and Social Affairs indicates that 92 percent of people who are homeless in Addis Ababa have come from other regions outside the Capital.
Most people begging on the street have come from the Southern Nations, Nationalities and People’s region, Oromia and Amhara Regional states. Only eight percent of those grew up in Addis. There are around 51,000 beggars and street children living in Addis. Of these 78 percent are between 13 and 45 years of age. In many cases these people end up in prostitution. Most street begging occurs in Kikos, Ledeta, Arada and Bole Sub Cities.
According to the city’s draft law, prostitutes, homeless children and beggars cannot ask for money in public places including transport services and parking areas as well as along the streets of Addis Ababa. A person giving money to beggars will face a 2,000 birr fine.
Endashaw Abera, Social Welfare Director at the Bureau told Capital that begging on the city streets is a disease that eats into the fabric of social, economic, religious, political and educational structures.
“We are in trouble, the number of street children is increasing and some able-bodied people who instead of doing some work, undertake to begging as their profession. We are drafting a law to stop it and returning some to their families and for others we will provide jobs,” he said.
“Street begging affects not only the geographical and social structure of urban areas; it also portrays the country in a bad light to tourists and foreign visitors. The simplest and most humane way to get rid of beggars is to stop giving them money. As soon as begging is not profitable, they will find something else to do to earn a living. If you have a culture of begging, it means that you also have a culture of giving money to beggars. You must educate the people who are giving the money to organize and find a more constructive way to help,” he said.
Some sociologists recommend that the government build the economy and create jobs before banning the beggars from the street. Currently the city administration is building a shelter at Kality for elders, young girls and women and children who are on the street. So far 250 people have joined the shelter but there is room for more. Eight NGOs have agreed to work with the city administration to help people transition from begging.
Street vendors hawking contraband products
The Addis Ababa City Trade Bureau says most clothing, shoes and electronic items being sold by street vendors are sourced from contraband trade.
According to the Bureau, boutiques also negotiating with illegal street vendors to sell their items on a commission basis. The Bureau says many customs offices are culpable because they sell reimbursed properties to traders who also give the items to street vendors.
Contraband trade gets a high volume of items to street vendors illegally.
Kasuahn Mulatu, Informal trade monitoring team head at the Bureau told Capital that illegal street vending is still a major problem even though some progress has been made.
“Some shops give their products to people so they can sell them on the street. We need to work together to solve this problem. This not only includes ten institutions but land management as well. All stakeholders need to improve their efforts.”
“Sidewalk vending is currently illegal in Addis, although the Bureau is working on a comprehensive sidewalk vending program that would fully regulate it. There are 7, 168 vendors working in 121 city areas legally. However over 50,000 are still selling illegally so there is a lot of work to be done.”
To register, street vendors must present identification cards from a Kebele, and have less than 10,000 birr in capital. A registration fee of 70 Br is also mandatory. Upon registration, the vendors receive a taxpayer identification number and a badge to wear at all times while working in the marketplaces.
Conference focuses on making democracy work
A two day long high-level dialogue conference on the challenges of transition, the reform process, current dynamics, future opportunities and challenges and risks of change was held at UNECA on August 22nd and 23rd, 2019.
The conference was opened by President Sahle Work Zewde and former South African President Thabo Mbeki who made the keynote address.
“Restoring rule of law is essential in order to maintain peace and sustain the ongoing reform process in the country,” the President underscored. Adding that there was a need for dialogue among stakeholders to have a solid ground for a strong system that could entertain unity in diversity.
The President also called for integrated efforts of all by taking advantage of the current opportunities in order to overcome challenges of transition.
Scholars from Tunisia, Yemen and the USA shared global experience on the challenges and opportunities of peaceful democratic political transition and lessons they have learned.
The theme of papers focused on the integrity and political participation of the elites, how to lead civilized competition among political parties, dealing with mechanisms of creating check and balance systems, and neutrality of security forces presented in a way to structure democratic transitions.
Two other well-known Ethiopian scholars also presented papers on the current dynamics on current Ethiopian political dynamics.
The conference was organized by the Ethiopian Foreign Relations Strategic Studies Institute, Inter African group, Centers for Dialogue, Research and Cooperation, Amani Africa and Berghof Foundation with the support of the German Federal Foreign Office.
About 200 participants from across the political, ethnic, geographical, and civic spectrum attended the event and discussed the challenges of transition and opportunities of Ethiopia’s reform process and mechanisms for managing a peaceful transition in an open and constructive manner.
“Ethiopia’s peace is important for the stability of region,” the president emphasized.
