Introduces a direct PPP negotiation mechanism

On February 3, 2023, the Government of Ethiopia implemented Public Private Amendment Proclamation No. 1283/2023. This amendment introduces a direct negotiation mechanism for PPPs, which allows the Public-Private Partnership Board to endorse project proposals based on bilateral intergovernmental economic diplomacy or direct contact with foreign companies. Prior approval from the government entity or public enterprise and the Ministry of Finance is required, and the board must ensure that the project benefits the public service.

To be eligible for the direct negotiation mechanism, companies must meet the minimum requirements outlined in the new law. These requirements include experience in completing at least three projects in the sector and demonstrating good financial standing to prove their capability to deliver the project both financially and technically.

Additionally, the Amendment does not apply to businesses conducted by equity joint ventures between a public enterprise and a private investor, a foreign government, or a public enterprise of a foreign government.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • Government Portal, Public Private Amendment Proclamation No. 1283/2023 , https://www.mofed.gov.et/media/filer_public/3e/24/3e244d19-a9a9-4da5-bed2-82e5c8b549a0/ppp_amendment_proclamation_no_1283-2023pdf_1.pdf, 03 Feb 2023
  • Africa Legal Network, An Amendment to the Public/Private Partnership Proclamation is Published, https://aln.africa/insight/amendment-to-the-national-payment-system-proclamation-becomes-effective/#:~:text=The%20Amendment%20Proclamation%2C%20under%20article,issuer%20or%20payment%20system%20operator., 17 Feb 2023