Regional Conference on Private Military and Security Companies (PMSCs), 11-12 November 2015, Addis Ababa

1. Perspectives and experiences of the Ethiopian
PMSCs: challenges and opportunities for its
regulation
November 12, 2015

2. THE EVOLUTION OF PMSCS IN
ETHIOPIA
 No evidence of the establishment of private security structures
during the Derg regime (kinfe, 2004).
 The growth of PMSCs in Ethiopia follows the continental dynam-
ic: fits into a global process of commodification of security.
 The evolution of PMSCs can be attributed to three periods;
 1. Changing of government (early part of the 1990’s, initial period)
high demobilized soldiers plus high unemployment. (Tila; 1992, and
Sebhatu and his Sons Security Service, created in 1992)

3. CONT,,,
 2. Economic growth and high privatization since 2005 (expansion
period) increased demand for security
 3. 2008-2009 (intensification period). This comes following the
government’s introduction of BPR,
Four categories of PMSCs owners:
1. Senior ex-police officers including the former commissioner of the
A.A. police and retired generals;
2. A group of demobilized soldiers and ex-service men who organized
themselves and opened PMSCs;

4. CONT,,,
 3. Supervisors who used to work the bigger PSCs and decided to
resign and open their own;
 4. Business people who forcefully and indirectly joined the sector.

5. II. Size of the industry;
 It is difficult to estimate the size of the sector with accuracy. The
estimated number of PSC would be anything from 100 to 130; (about
100 in Addis).
 Some of the big companies have an annual cash flow of 40 to 50
million birr each (they employ from 2800 to 9, 000 employees).
 The sector is estimated to run multibillion birr.
 Majority of the companies are of middle size meaning each of
them employs not less than 1,000 guards. )

6. R ECRUITMENT, WOR KING CONDITION
T R A INING A ND LOG IST ICS
 Grade eight and above (female) grade six and above for male “The least
educated the better.”
 Training of personnel (none, to one day, (small PSCs) one week to one month
(big ones).
 Working condition: The guards are deployed following a shifting system; a guard
after 24 hours of service is off duty for the following 48 hours
 No proper and regular logistics; uniforms, rain-coat, torches, shoes and night
dresses.

7. CONT,,,
 Kind of service provision; guarding, VIP protection, screening;
admitting customers to clients’ premises; ID checking, surveillance,
property and infrastructure protection.
 The absence of gun license law seen by some in the sector as a key
challenge.
 Selective arming; not arming at all and arming together with
regulation advocated as a future models,

8. SALARY AND BENEFITS
 most estimates converge around similar sums (700 birr per
month).
 While the minimum salary in the smaller companies is 500 birr in
the bigger ones it ranges from 800 to 1300 birr with the maximum
being 3600 plus medical insurance and other benefits .
 High unemployment+ youth population= low salary and poor
bargaining capacity.

9. LICENSE REQUIREMENTS
 The Ethiopian Trade proclamation no 020/2/6056/2008 does not specify the
guarding and security provision sector as a type of business,
 As per Federal Negarit Gazeta proclamation No. 720/2011 Article 28 “the FP
can issue certificates of competence to private institutions wishing to engage in
providing security service”.
 The request to getting a license has to be submitted to the FP Professional
Counseling and Arms License Division together with a form prepared to this effect.

10. CONT,,,
 Categories of Certificates; There are two types of certificates stated
by the FP; level one and two.
 Level one covers those PSCs that provide protection for embassies,
INO, NGOs, big gov’t infrastructure, diplomats, Banks, five star hotels,
and all clients mentioned in level two.
 Level two certificates only allow security provision for individuals that
are not covered in level one.
 No objective criteria stated in terms of a minimum capital or
equipment (except owning one car and three room building)

11. BEST PRACTICES TO BE TAKEN
FROM THE ETHIOPIAN SECTOR;
 Reserving the sector to nationals only during the period where
there is no proper legislation and regulatory mechanisms;
 Close working relationship with local community (e.g Rail way
route)
 Not directly arming the sector in the absence of proper regulation

12. CHALLENGES FACED;
 Absence of a regulatory regimes; lack of professionalization and little
application of international best practices; unstructured or poor
partnership with the police (little sharing of info); little or no training for
personnel;
 There is almost no working relationship between the different PMSCs.
 Lack of the required capacity by the FP to effectively discharge its
duties; (no continuous background checks, monitoring compliance with
terms of license or sanctioning bad actors.

13. CONT,,,
 The FP is under staffed; less than 20 staff involved in the licensing
monitoring and controlling of PMSC that have close to five hundred
thousand personnel.
 Unhealthy competition in the sector due to the lack of standard,
this limits the growth of the sector and the provision of a quality
service.

14. A D O P T I N G T H E M O N T R E U X D O C U M E N T
 This can help the Ethiopian gov’t review the conformity of domestic legislation and
practice with international humanitarian and HR laws.
 Can help to establish a procedure for the selection and contracting of PMSCs and
ensure that it is transparent and is supervised;
 To select PMSCs according to; past conduct, possession required authorizations;
personnel and property records, adequate training in international humanitarian law and
human rights law; lawful acquisition and use of equipment (in particular weapons)
 It could be used for monitoring compliance and ensuring accountability; for
contractual sanctions commensurate to the conduct (immediate or graduated termination
of the contract; financial penalties etc)

15. T HE WAY FORWA R D A ND
R ECOMMENDA TIONS
 The declaration of tighter regulations and legislation and the
inclusion of international best practices (Montreux Document).
 The imposition of sector-wide standards for training.
 The introduction of minimum wage for the guards, to be raised
over time.(like that of employees in other sectors).
 The allocation of adequate financial and human resources to the
FP .

16. CONT,,,
 The FP should develop a registration system and maintain a computerized data
base consisting of all registered security officers and PMSCs;
 It should undertake finger print classification of all those wanting to enter the
industry,
 The PMSCs should be required to assure clear identification of staff and
vehicles (IDs, clearly distinguishable uniforms, special number plates for vehicles);

17. CONT,,,
 Working conditions; set a minimum amount of capital required to start
a security firm; set minimum wages, academic qualifications, codes of
conduct,
 The kind of client and service that is required by the PMSCs should
be specified.
 The introduction of a license fee by the PMSCs has been suggested as
a remedy to increase ownership by the PMSCs and the monitoring
capacity of the FP.

19. THANK YOU !