Ethiopia Country Profile

Public Procurement and Contracting

Business Corruption

According to the US Department of State 2008, the Ethiopian government reviews investment proposals in a non-discriminatory manner and foreign investors do not regard the screening process as an impediment to investment or a limit to competition. Most, but not all tenders, issued by the Privatisation and Public Enterprises Supervising Agency (PPESA) under the country's privatisation programme are open to foreign participation. Some sectors of the economy are closed to foreign investment and several sources have voiced suspicions that the frequent cancellation of telecommunications, power and other infrastructure tenders may be the result of corruption.

Companies are recommended to use a specialised public procurement due diligence tool in order to help mitigate corruption risks related to public procurement in Ethiopia. For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 3.5 on a 7-point scale (1 being 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 3.2 on a 7-point scale (1 being 'always show favouritism' and 7 'never show favouritism').

The World Bank & IFC: Enterprise: Surveys 2006:
- Almost 12% of the companies surveyed expect to give gifts to secure a government contract.