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Public Procurement in Ethiopia
Public procurement in Ethiopia is a cornerstone of government operations and national development planning. Given the country’s large population, expanding infrastructure needs, and state-led development model, public procurement represents one of the most significant channels of public expenditure and market access for suppliers and contractors.
The Ethiopian public procurement system is legally defined, institutionally structured, and centrally coordinated through federal authorities. Procurement activities are governed by national directives that apply across ministries, agencies, and public institutions, with a growing emphasis on transparency, competition, and value for money.
For domestic firms and international bidders alike, Public Procurement in Ethiopia offers access to a large and diversified market. Government tenders in Ethiopia span goods, works, and services across multiple sectors, making procurement a key entry point for businesses seeking engagement with the Ethiopian public sector.
Country & Economic Overview
| Country | Ethiopia |
| Region | Sub-Saharan Africa |
| Population | 132.1 million |
| Income Level | Low-income economy |
| Currency | Ethiopian Birr (ETB) |
| Exchange Environment | Managed exchange rate regime |
| GDP | USD 149.74 billion (2024) |
| GNI | USD 142.60 billion (2024) |
| GNI per Capita | USD 1,100 (2024) |
Ethiopia’s scale and development priorities make public procurement a major driver of economic activity and public investment.
Public Procurement Governance Framework
The public procurement governance framework in Ethiopia is centrally coordinated, with policy, regulatory, and operational oversight vested in designated federal institutions.
| Public Procurement Agency (PPA) | The FDRE Public Procurement & Property Administration Agency |
| PPA Website | http://www.ppa.gov.et/ |
| PPA as Central Purchasing Body | Yes |
| Relevant Ministry | Ministry of Finance |
| Central Purchasing Body (CPB) | Ministry of Finance and Economic Development |
| CPB Sector Coverage | Financial sector |
| CPB Geographic Coverage | National |
Line ministries, public agencies, and regional entities conduct procurement in accordance with federal directives and under the supervision of the central authorities.
Legal & Regulatory Framework
Public procurement law in Ethiopia is governed by federal legislation and detailed implementing directives issued by the Public Procurement & Property Administration Agency.
- Value for Money: Federal Public Procurement Directive, paragraph 16.8.3
- Most Economically Advantageous Tender (MEAT): paragraph 21.10.8
- Sustainability considerations: paragraph 16.7.3
- SME participation: paragraph 16.20.5
- Bid securities: paragraph 16.16
- Public bid openings: paragraph 16.18
- Domestic preference: paragraph 16.20
The legal framework also defines complaint resolution, bid validity, standstill periods, and disclosure requirements through specific directive clauses.
Procurement Procedures & Thresholds
| Aspect | Regulatory Reference |
| Complaint Resolution Period | Directive paragraph 48.4 |
| Standstill Period (Goods) | Directive paragraph 16.27.7 |
| Standstill Period (Works) | Directive paragraph 16.27.7 |
| Standstill Period (Services) | Directive paragraph 16.27.7 |
| Bid Validity Period | Directive paragraph 16.15.3 |
| Contract Award Disclosure | Directive article 6(5) |
| Direct Contracting Thresholds | Directive paragraph 17.2 |
Procurement methods include open tendering and direct contracting, with advertisement timelines governed by Directive article 16/4/2.
E-Procurement System Overview
Ethiopia has introduced a national electronic procurement platform to support transparency and efficiency in public procurement.
| eProcurement System Name | e-GP Ethiopia |
| System Website | http://www.ppa.gov.et/ |
| Launch Year | 2022 |
| Supported Functionalities | ePlanning, ePublishing, eTendering, eEvaluation, eAuctions, Contract Management, eCatalogues, ePurchasing, Vendor Management, eComplaints |
| Supported Languages | Amharic, English |
| World Bank Use of System | No |
The eProcurement system is currently under pilot implementation at the national level.
Procurement Market Characteristics
Ethiopia’s procurement market covers a broad range of goods, works, and services aligned with public investment priorities.
- Goods procurement for public administration and service delivery
- Works procurement for infrastructure and construction
- Services procurement including consultancy and operational services
Domestic participation dominates procurement activity, with international participation primarily associated with large-scale or donor-funded projects.
Transparency, Complaints & Oversight
The procurement framework provides for administrative complaint mechanisms and public reporting.
- Formal complaint resolution procedures defined in procurement directives
- Published procurement and audit reports
- Central oversight by the Public Procurement & Property Administration Agency
Annual procurement reports and audit documents are publicly accessible through official government portals.
Sustainability & Green Public Procurement
Sustainability considerations are referenced within the federal procurement directives. Environmental and sustainability criteria may be applied during evaluation, depending on the nature of the procurement and sector requirements.
Further development of green public procurement practices is expected to align with broader national policy objectives.
Social & Ethical Procurement Considerations
Social and ethical considerations in Ethiopian public procurement are addressed through general procurement directives and legal obligations.
- Provisions supporting SME participation
- Domestic preference mechanisms
- Compliance with national labor and legal standards
Key Challenges & Practical Insights for Bidders
- Complex administrative and documentation requirements
- Ongoing transition to electronic procurement systems
- Strong emphasis on compliance with federal directives
Bidders are advised to closely follow federal procurement directives, monitor announcements from the Public Procurement & Property Administration Agency, and prepare for both manual and electronic procurement processes.
Public Procurement in Ethiopia offers access to one of Africa’s largest public markets. With a defined legal framework, centralized oversight, and expanding eProcurement capabilities, the system provides structured opportunities for qualified suppliers able to navigate regulatory and procedural requirements.
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