Where we work

CIPS HPA in Ethiopia

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CIPS HPA began its support in Ethiopia in 2024 with a comprehensive diagnostic assessment of procurement maturity at the Ethiopian Pharmaceutical Supply Service (EPSS). Since then, CIPS HPA has continued to assist EPSS in implementing priority improvements based on the diagnostic findings.

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Methodology

CIPS HPA’s work follows the proven CIPS Procurement Excellence methodology

Our methodology comprises of  4 steps.
1.

Diagnostic to assess the health procurement agency’s level of performance within the CIPS Procurement Excellence framework

2.

Improvement plan to address gaps and improve overall performance

3.

Technical assistance in addressing performance gaps

4.

Skills development for procurement staff

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Diagnostic assessment

Key areas for improvement identified through the diagnostic included: 

The diagnostic identified several key areas requiring enhancement, including:

The need for clearer procurement policies

Strengthened implementation and use of standard operating procedures

Improved category management

More robust contract management

Enhanced supplier performance management

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technical assistance

CIPS HPA has provided targeted support to EPSS procurement staff to operationalise the recommended improvement measures. Key areas of assistance include:

Strengthening Contract Management
CIPS HPA supported EPSS in conducting an in-depth contract review, assessing cost and lead-time data to identify opportunities for efficiency gains. The team also helped establish a tracking framework to monitor these metrics for all future deliveries, ensuring continuous oversight and performance improvement.
Review of Standard Documents
CIPS HPA assisted in revising standard bidding documents and contract templates to align with the latest procurement directives. The team is also supporting the development of Standard Operating Procedures for common procurement processes to promote consistency, transparency, and operational efficiency.
Supply Market Analysis
To address inconsistent supplier deliveries that were disrupting the availability of essential health products, CIPS HPA supported EPSS in conducting a detailed supply market analysis and supplier assessment. This enabled EPSS to identify and source alternative suppliers in cases where existing suppliers faced raw material challenges or lacked sufficient quality assurance.
Multi-Vendor Sourcing Strategy
CIPS HPA is supporting EPSS in implementing its new multi-vendor sourcing strategy—a hybrid procurement model that combines centralized vendor selection and pricing control at the EPSS level with decentralized contracting by health facilities. This approach aims to increase flexibility, strengthen supply security, and improve overall procurement responsiveness.
Impact

CIPS HPA has achieved the following impact in Kenya:

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40% increase in availability of critical maternal health products
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Price reductions of up to 67% for critical medicines: For example, pricing analysis together with improved tendering practices resulted in estimated annual savings of more than USD450K on just four MNCH products
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Improved budget absorption rate (the ability to utilise the available budget within the budget window, which is an issue in healthcare procurement as budget that is not used is returned to Treasury) in one county
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Reduction in turnaround time (the time between a requisition and the completion of a contract with a supplier) of 33.3% from an average of 180 to 120 days, improving the ability to use the budget in the budget window as well as the reliability of critical medicines being in stock.
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50-75% improvement in overall procurement effectiveness (this is calculated independently, repeating the CIPS Diagnostic to measure procurement maturity across 23 related procurement capabilities following CIPS HPA intervention).
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An audit carried out by USAID on KEMSA’s supply chain following CIPS HPA engagement gave KEMSA’s vendor management a score of 83% and procurement procedures a score of 93.5%, reflecting the impact of the support provided
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Advocacy for increased budget allocation led to increases in the budget for healthcare products and technologies of 26-75% across four Kenyan counties.
Additionally, CIPS HPA provided technical expertise for a 3-year quantification & forecasting activity that led to the review of HPT budget allocation from $1,059M to $1,548M for 25/26 financial year. (convert to dollars). The 44% budget increment translates to an estimated 6% improvement in product availability.
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Reduced turnaround time for the contracting process from 2 months to 1-2 weeks at KEMSA
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Support for KEMSA to improve working capital management by holding lower stocks and replenishing more frequently (4 times per year vs. once), enabling outgoings to be better match with incoming revenue.
This in turn enables faster payment of suppliers due to better capitalisation. KEMSA has targeted an improvement in speed of supplier payments of three times. KEMSA estimates these changes will result in stock availability of 85%.
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