By DMR Law Firm
On 9 September 2024, Ethiopia enacted Proclamation No. 1333/2024 – the Federal Public Procurement and Property Administration Proclamation, published in the Federal Negarit Gazette No. 66. The new law repeals and replaces the former Proclamation No. 649/2009, introducing significant reforms aimed at addressing long-standing gaps in public procurement and property administration .
Key Objectives of the New Proclamation
The Proclamation was adopted to:
• Address substantive and implementation weaknesses identified under the previous legal framework;
• Enhance transparency, accessibility, and accountability in public procurement and property administration; and
• Clearly define administrative responsibility and consequences arising from violations of procurement and property management rules .
Expanded Scope of Application
One of the most notable changes is the expanded scope of application. The Proclamation now expressly applies not only to federal government organs and institutions, but also to federal government-owned public enterprises. This extension brings state-owned enterprises fully within the public procurement compliance regime, significantly increasing regulatory oversight of their purchasing and property disposal activities .
Clarified Procurement Framework
The Proclamation provides detailed definitions and rules governing:
• Procurement of goods, works, consultancy services, and non-consultancy services;
• Strategic and centralized procurement mechanisms;
• Framework agreements and turnkey procurement; and
• Contract administration and life-cycle cost analysis.
These provisions aim to standardize procurement practices across federal entities and improve value for money in the use of public funds .
Strengthened Oversight, Accountability, and Remedies
The law reinforces oversight by re-establishing the Federal Public Procurement and Property Authority and a specialized Procurement Appeals Board. It introduces clearer procedures for complaints and appeals by bidders and candidates, as well as administrative measures against suppliers or bidders that violate procurement rules or prejudice public interest .
Practical Implications for Clients
For contractors, suppliers, consultants, and public enterprises, the new Proclamation means:
• Stricter compliance requirements and closer scrutiny of procurement conduct;
• Greater reliance on standardized bidding documents and electronic procurement systems;
• Expanded opportunities to challenge unlawful procurement decisions through structured complaint and appeal mechanisms; and
• Increased exposure to administrative sanctions for non-compliance.
Conclusion
Proclamation No. 1333/2024 represents a major step in modernizing Ethiopia’s public procurement and property administration regime. Businesses engaging with federal institutions and government-owned enterprises should review their procurement strategies and compliance frameworks to align with the new legal requirements.
Our firm continues to monitor developments and implementing directives under this Proclamation and is available to advise clients on compliance, bidding strategies, and dispute resolution arising from public procurement processes.
