How the tobacco industry circumvented CSR laws in Ethiopia

Although corporate social responsibility (CSR) activities have been banned for tobacco companies in Ethiopia since 2019, the national operator took advantage of a resale of shares to Japan Tobacco to establish partnerships with the government and reintegrate itself into the decision-making process.

Along with other anti-smoking measures (taxation, smoke-free public places, graphic health warnings, bans on advertising, promotion and sponsorship, and the sale of tobacco to minors), the Ethiopian government passed laws in 2019 and 2020 prohibiting the tobacco industry from engaging in corporate social responsibility (CSR) activities. To comply with Article 5.3 of the WHO Framework Convention on Tobacco Control (FCTC) and to raise cash, it also sold the National Tobacco Enterprise (NTE), which holds a monopoly on tobacco production, importation and distribution, to Japan Tobacco International (JTI, 71 %) and the Yemeni Sheba Company (29 %) in 2017.

Noting that, despite significant legislative progress, the NTE developed numerous CSR activities in 2020 and 2021, a team of Ethiopian and Australian researchers explored the mechanisms by which tobacco manufacturers managed to establish new partnerships with the government.

Increase in CSR activities after the adoption of the law

The researchers studied news articles, social media conversations and internal documents from government and public agencies responsible for tobacco issues.[1]They were thus able to identify that the CSR activities undertaken by the tobacco industry increased over the period 2019-2021.

For example, NTE was heavily involved in the reforestation program set up by the Prime Minister. It provided free seeds and phytosanitary products to small farmers to encourage them to grow tobacco. As in other countries, it took advantage of the COVID-19 crisis to promote itself by distributing hydroalcoholic solutions to populations near its headquarters. NTE also offered training on the fight against illicit trade to members of the Customs Commission and police officers. It announced that it had provided 3,000 homes with drinking water, without specifying the site(s) concerned. It also funded a university exchange program in Japan for Ethiopian students.

An agreement facilitating the participation of the NTE in public policies

The researchers were able to identify several levers that allowed NTE to carry out these activities without being worried. It appears in particular that, during the sale of NTE's assets, a memorandum of understanding (MOU) was signed with the Ethiopian Food and Drug Administration (EFDA) and the Customs Commission, without including the Ministry of Health. This MOU contained clauses allowing NTE to participate in the development of tobacco laws, to collaborate with authorities fighting illicit trade and to extend its monopoly until 2025. NTE not only took advantage of this situation to engage in more CSR actions with impunity, but was also able to interfere in the increase in taxes and position itself as an actor in the fight against illicit trade, while using the latter to promote its brand and products.

The use of third parties, a common tactic of the tobacco industry, was also highlighted. The role of a law firm in reforestation operations and that of the Japanese embassy in student exchanges thus composed factors of valorization and renormalization of the tobacco industry.

Keeping the tobacco industry out of public policy

Public health actors, such as the Mathiwos Wondu Ye-Ethiopia Cancer Society (MWECS), have attempted to alert the authorities to these practices, with varying degrees of success. For example, MWECS drew attention to a “loyal taxpayer” award given to NTE by the Ministry of Budget, in the presence of the Prime Minister; this distinction was subsequently removed from the list of decorations. However, MWECS was not heard on the subject of illicit trade and student exchanges. The EFDA, for its part, was able to obtain a halt to the distributions of health supplies, reported by MWECS.

The authors of this study conclude that the 2019 and 2020 laws have not been respected and that the tobacco industry has gained influence by resorting to CSR activities. They advocate the cancellation of the MOU signed with the NTE and stricter compliance with Ethiopian law and Article 5.3 of the FCTC, which requires that public policies be protected from the tobacco industry. The authors believe, however, that public policies would benefit from better integrating public health stakeholders. They also recommend the creation of a register of meetings with tobacco manufacturers or the development and dissemination among government representatives of a code of good conduct with regard to the tobacco industry.

Keywords: Ethiopia, CSR, NTE, JTI, MWECS.

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[1] Mengesha SD, Brolan C, Gartner CE, Tobacco industry corporate social responsibility activities and other interference after ratification of a strong tobacco law in Ethiopia, Tobacco Control, Published Online First: 15 September 2023. doi: 10.1136/tc-2023-058079