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Does Bureaucracy Hinder Energy Access Progress in Ethiopia?

  • April 6, 2025
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[Spread eepBp if you like it]. From 2007 to 2010, while working at the Ethiopian Electric Power Corporation (EEPCO), I was partly responsible for adhering to corporate policy

Does Bureaucracy Hinder Energy Access Progress in Ethiopia?
[Spread eepBp if you like it].

From 2007 to 2010, while working at the Ethiopian Electric Power Corporation (EEPCO), I was partly responsible for adhering to corporate policy and overseeing transformer distribution in one of the then utility’s major regions. Distribution transformers were in such short supply that subscribers had to pay and wait for months—or even years—to receive one. The corporate office frequently adjusted priorities based on government directives, which the regions were required to implement. One month, the focus might be irrigation; the next, processing plants or factories; and then other productive sectors. As subscribers kept paying for transformers and priorities shifted, the wait time for the less fortunate ones stretched on indefinitely.

Then, this happens.

Our office occupied a spacious floor, with the manager positioned in one corner and the engineers and secretary in the opposite corner, separated by a broad, open area.

One day, a farmer aspiring to become a subscriber visited our office. He approached the manager and shared his intentions. The manager, pleased to assist, directed him to me. He reached out to  me and explained that he planned to sell his cows to fund a grinding mill. He had initially gone to the utility’s district, where subscriptions are typically processed, but the district staff informed him that he needed to contact the regional office because his project required a transformer and distribution poles. They provided him with a cost estimate, and he was resolute about covering it with the proceeds from selling his cows, which brought him to us.

At that time, increasing subscriber numbers was a key performance indicator for my team and the organization. However, I was aware that the utility faced a severe shortage of distribution transformers, with previous subscribers already waiting years for resolution. I understood he would likely face an even longer delay, and in the meantime, he could put his cows to productive use until the transformer issue was resolved.

I personally dislike exploiting people’s lack of awareness or understanding, even if it benefits me. Going against the organization’s usual approach, I took it upon myself to clarify the situation for him. I informed him about the transformer shortage and warned that, despite making the payment, he might have to wait years for delivery. I explained that while providing a cost estimate was easy for me, he risked either a long delay or no refund once the funds were deposited into the organization’s account. I suggested he hold onto his cows and periodically check with us for updates before deciding.

What did he do.

He ignored my advice, shook his head and returned to the manager. As I stepped away from my desk to address other matters with colleagues on different floors, the manager sent him to another team member. My colleague calculated the cost, completed the necessary forms, and instructed him to return to the district to make the payment. The farmer went home, sold his cows, paid the amount, and I later received the transformer details from the district, which I then added to my existing records.

After that, he had to make weekly trips to the district. Following several months of these visits, they informed him that he should go to the regional office, as the district did not manage transformer-related matters.

One day, the farmer [ subscriber] showed up in our office and headed straight to the manager seated in the corner. The manager referred him to my colleague who had prepared his cost estimate. The farmer and my colleague discussed the matter for some time, and my colleague explained that he would need to wait until a transformer became available. I was quietly and sadly listening their discussion just a short distance away.

Finally

Eventually, he came to my desk and began speaking with me. He seemed embarrassed for disregarding my honest advice, believing I was the only one who could resolve his situation. Regrettably, I had to inform him that it was too late, and his only choice was to wait for a resolution. The least I could do was to treat him kindly.

By the time I resigned a year later, the farmer still hadn’t received the transformer, and his money remained in the bank, earning no interest. And I do not have the knowledge what really happened after that.

In an environment where mistrust prevails among all, even genuine goodwill loses its value, regardless of the personal risks you take.

For example, productive use of energy is a huge market opportunity in Ethiopia. Despite the need, I do not see Ethiopia on regional and continental discussions on the topic, even on the most notable ones. Dismayed by such underrepresentation, I once raised a question to a government executive why his organization was not represented to an important seminar, and he told me that the bureaucracy to access forex for travel made it impossible even if the seminar was good for the country.

Over the past few years [ and especially recently], conversations about the productive application of renewable energy have been gaining traction, even though the idea and its applications are not completely new, except that it serves the off-grid communities.  Ethiopia stays muted, in comparison.

Market actors often point to financing, tax, and regulatory issues, but they tend to overlook the costly impact of bureaucracy. From my perspective, informed by my experience in Ethiopia, it’s the slow bureaucracy at the policy level, in customs, and in logistics that truly inflates costs and hinders progress at every stage.

Consider the lost productivity and missed opportunities for the farmer in that situation. By the time the transformer finally arrived, his initial momentum might have waned. If bureaucracy hadn’t been an obstacle, he could have likely become operational sooner, hired more people, contributed more in taxes, and improved his overall economic standing.

Bureaucracy leads to delays, and each delay inflates the cost of goods and services for consumers and hinders overall investment. Despite this clear negative impact, bureaucratic hurdles seem to be increasing unabated in recent years. I urge everyone to speak out more against the unnecessary burden bureaucracy places on the energy market, with the same vigor we address policy, regulation, and taxes.

—-End——

Ethiopian Energy Portal is a digital energy magazine that strives in creating an energy active society in Ethiopia and beyond.

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