The drug supply chain may soon see its most important overhaul in years as a proposed directive transfers full procurement authority for pharmaceutical supplies from the Public Procurement & Property Authority to the Ethiopian Pharmaceutical Supply Service (EPSS). According to officials familiar with the directive, it is designed to give the EPSS a broader mandate and accelerate critical decision-making.

The Ministry of Finance (MoF) proposed the latest bureaucratic manoeuvre while frustrations build up with long-standing processes and delays that have left hospitals and health centres chronically understocked.

For years, the existing arrangement has been blamed for persistent medicine shortages. According to Awol Jemal, director of quality control at the EPSS, the convoluted system of oversight, coupled with overlapping layers of approval, has made it difficult to respond promptly to urgent supply demands. If passed, he says the draft directive will streamline the process and help ensure more reliable access to essential drugs.

“The current arrangement delays our decision-making and disrupts the supply chain,” he said.

Two years ago, the EPSS distributed medical and pharmaceutical supplies worth 51 billion Br to over 420 hospitals, 4,100 health centres, and 18,500 health posts nationwide. Awol hopes that the EPSS will gain the authority to sign off on procurement deals without resorting to slow-moving procedures that frequently prove incompatible with a sector as time-sensitive as medicine distribution.

The draft directive includes a notable shift designed to help local bidders.

Domestic manufacturers have long complained about a requirement that forced them to quote their prices in the local currency, even as foreign competitors offered prices in foreign exchange. Due to Ethiopia’s volatile exchange rates and import-heavy market conditions, many suppliers felt this disadvantaged them. The proposed bill would permit domestic manufacturers to quote in foreign currency, potentially giving them a "fairer footing" and allowing them to hedge against currency fluctuations. Industry operators consider the measure a recognition of the domestic sector’s role in meeting the growing pharmaceutical needs.

Domestic manufacturers are upbeat about the proposed changes. Among them is Daniel Waktole, president of the Ethiopian Pharmaceuticals & Medical Supplies Manufacturers Association (EPMSMA) and a major shareholder of Kilitch Estro Biotech Plc, a company that recently secured a 522 million Br contract with the EPSS.