By Emmanuel Nduka Obisue
The World Bank Group has imposed a 21-month debarment on three African subsidiaries of PricewaterhouseCoopers (PwC) over misconduct linked to a major cross-border electricity project between Ethiopia and Kenya.
The affected firms are Mauritius-based PwC Associates Africa Ltd., PwC Kenya, and PwC Rwanda. They were sanctioned following findings of irregularities in their role in the Eastern Electricity Highway Project, a key initiative aimed at boosting regional power integration in East Africa.
According to the World Bank, the firms misrepresented the qualifications, availability, and employment status of key experts during the execution of a contract involving the Ethiopian Electric Utility. They also failed to fully disclose the use of subconsultants, breaching the institution’s integrity standards.
“The debarment makes PwC Associates, PwC Kenya, PwC Rwanda, and any affiliates they control ineligible to participate in World Bank Group-financed projects and operations,” the Bank said, noting that the companies admitted culpability as part of a negotiated settlement.
The Eastern Electricity Highway Project is expected to enable Ethiopia export surplus electricity to Kenya, helping to lower energy costs and improve supply stability across the region.
As part of the settlement, the sanctioned firms agreed to implement corrective measures, including internal disciplinary actions, enhanced compliance systems, staff training, and cooperation with ongoing oversight processes. The World Bank said the reduced duration of the ban reflects these remedial commitments.
However, the sanctions are expected to have broader implications. Ethiopia’s ambition to become a regional electricity hub could face heightened scrutiny from investors and development partners, particularly around procurement transparency and governance standards.
Any delays in project implementation may also affect anticipated export revenues for Ethiopia, while Kenya could experience setbacks in efforts to stabilise electricity supply and reduce costs.
The development may further place reputational pressure on the professional services sectors in Rwanda and Mauritius, where the affected firms are based, especially in engagements tied to international development financing.
The World Bank added that the sanctions could extend beyond its own operations through cross-debarment arrangements with other multilateral institutions, potentially restricting the firms’ access to a wider pool of publicly funded contracts.
Nonetheless, the Bank noted that reinstatement remains possible if the companies meet the agreed compliance conditions and continue to cooperate with its integrity oversight mechanisms.
