Driving Health Procurement Excellence - HPA recognised Support in EPSS's Procurement System Reform and Modernisation

The Ethiopian Pharmaceutical Supply Service (EPSS) is on an ambitious journey to become one of Africa’s leading supply chain institutions. This transformation is not just about technology—it’s a comprehensive overhaul of infrastructure, workforce capacity, and governance frameworks to deliver world-class standards in pharmaceutical supply.

Driving Change Through Innovation

At the heart of this transformation is the successful deployment of SAP, an integrated end-to-end system designed to streamline operations and improve efficiency. But technology alone isn’t enough. EPSS has complemented this digital leap with legal and structural reforms, including:

• A revised establishment proclamation
• A new human resource manual
• The development and implementation of a pharmaceutical-specific procurement directive

Why a New Procurement Directive Was Needed

Previously, Ethiopia relied on a generic national procurement directive, which posed several challenges for pharmaceutical procurement. It lacked:

• Flexibility for the unique nature of medical supply chains
• Incentives for local manufacturers
• A global outlook for partnerships and collaboration

Recognising these gaps, the Public Procurement Authority, through Regulation No. 1333/2024 (Article 87, Subsection 3), authorised EPSS to create a dedicated directive for centrally procured medical supplies, equipment, and related services.

Building on Global Best Practices

The new directive was developed after extensive consultations with key stakeholders, including the Ministry of Justice, Ministry of Finance, Federal Public Procurement and Property Administration, suppliers, and local manufacturers. It incorporates global best practices and introduces several ground-breaking initiatives:

• Mandatory e-procurement for all procedures
• Competitive electronic reverse auctions to ensure value for money
• Subsequent negotiations on competitive tenders
• Alternative procurement strategies, such as lease procurement and product-service systems

One major efficiency gain is the reduction of procurement cycle times. For example, the international bid flotation period has been cut from 35–45 days to just 20 days.

Endorsement and Implementation

The directive has now been endorsed by the Ministry of Finance and made publicly available, marking a significant milestone in Ethiopia’s healthcare supply chain reform. With these changes, EPSS is setting a new benchmark for efficiency, transparency, and innovation in pharmaceutical procurement.

Ethiopia’s transformation is more than a national achievement—it’s a model for Africa. By combining technology, policy reform, and stakeholder collaboration, EPSS is paving the way for a stronger, more resilient healthcare system.