What level of competition are offset contracts subject to?
Score
SCORE: 0/100
Rubric
Benin score: 0/100
Score: 0/100
Single source offset contracts are rarely (if ever) justified.
Score: 25/100
There is little open competition in offset contracts, with most contracts being single-sourced.
Score: 50/100
Offset contracts are generally conducted as open competition, but circumstances are not always clearly defined. Single source contracts are often conducted without clear justification.
Score: 75/100
Offset contracts are conducted as open competition, except in clearly defined circumstances. However, single source contracts are sometimes conducted without clear justification.
Score: 100/100
Offset contracts are conducted as open competition, except in clearly defined circumstances. All single source contracts are justified and subject to external scrutiny (such as parliament or the external audit office), who have the power to reject the purchase.
Assessor Explanation
There is no provision from the Public Procurement Code about offset contracts [1]. In practice, procurement officials do not use this type of contract [2][3] [4].
Assessor Sources
1. Law 2020-26 of 29 September 2020 on the Public Procurement Code in the Republic of Benin.
2. Interview 12, interview with an Auditor at the Ministry of Defense, June 24, 2024 &.
3. Interview 30, interview with a Person Responsible of Public Procurement 1, September 15, 2024
4. Interview 31, interview with a Person Responsible of Public Procurement 2, September 15, 2024.
Compare scores by country
Please view this page on a larger screen for the full stats.
Relevant comparisons
Select custom
Country
72.
Benin
There is no provision from the Public Procurement Code about offset contracts [1]. In practice, procurement officials do not use this type of contract [2][3] [4].
0 / 100
Burundi
Single-source offset contracts are not justified . They are entered into at the discretion of senior military officials, who issue directives to procurement officers without seeking to justify anything [1] [2].
0 / 100
Cameroon
Cameroon has not explicitly prohibited offset contracts in the defence sector. It has neither defined them nor scheduled a legal provision related to this commercial practice [1] [2].
0 / 100
Cote d'Ivoire
Offset contracts in the defence sector are not regulated within the legal framework for public procurement in Côte d’Ivoire [1]. Nor are they common practice in Côte d’Ivoire [2].
0 / 100
Ghana
Because there are no regulations on offset contracts, there are no formal policies or procedures (1).
0 / 100
Kenya
There is no explicit reference in Kenyan law or defence procurement regulations to competition requirements for offset contracts. Offset agreements, where they exist, appear to be managed via bilateral defence cooperation arrangements or direct procurement methods, particularly for strategic acquisitions. In such cases, competition is often bypassed. For example, as a background, the 10th Parliament’s investigation into the Kenya Defence Forces Modernisation Programme highlighted several contracts awarded through non-competitive methods, including direct procurement. These were not framed as offset contracts per se, but may have involved countertrade or industrial participation elements that resemble offset practices [1].
However, these arrangements lacked transparency and value-for-money safeguards. There is no evidence that such offset-like contracts were subject to open, competitive tendering, nor are there formal provisions requiring this [2].
0 / 100
Liberia
Liberia does not regulate or practice offset contracting in its defence procurement. As such, there is no evidence of offset contracts being awarded on a single-source basis, nor of any justification processes. While bilateral arrangements exist in other policy domains (such as climate finance agreements supervised by the EPA),[2] these are not defence procurements and do not constitute offset contracts under the PPCC.
0 / 100
Madagascar
The Public Procurement Code does not mention the existence of compensation markets [1]. Specialists in the field also confirm this absence [2][3].
0 / 100
Mali
There are no formal policies and procedures related to offset contracts.[1]
0 / 100
Mozambique
The Regulation on Equipment and Armament of the Defence and Security Forces in Mozambique that addresses the issue of compensation contracts does not address competition levels [1]. Thus, if this type of contracts exists, they are treated as Classified Documents and it was not possible to obtain information and justifications on the subject [2, 3].
0 / 100
Niger
Niger does not impose any competition requirements or restrictions on the use of agents and intermediaries in offset contracts, as there is no legal framework regulating such agreements. A review of the 2013 decree on defense and security procurement found no provisions ensuring competitive bidding or restricting the involvement of intermediaries in offset contracts [1]. Additionally, there is no evidence that Niger has publicly committed to regulating the use of agents and intermediaries in defense procurement [2]. Given the lack of legal safeguards and oversight mechanisms, any offset contracts—if they were introduced—could be awarded arbitrarily, with no requirement for transparency, competition, or anti-corruption controls.
0 / 100
Nigeria
Offset contracts are excessively secretive arrangement in the defence procurement realm. As such, it is hardly made public. However, government officials can mention ongoing bilateral discussions that are suggestive of offset agreements that will bolster technological transfer to the country. Recently, Ministry of Defence in Nigeria announced collaborative discussions between NEANY and DICON to establish assembly lines in Nigeria for the production of advanced military equipment [1].
25 / 100
Senegal
Offset contracts are explicitly prohibited under Senegal’s Public Procurement Code (Decree No. 2020-1235), so there is no competitive process for them. No legal framework exists for the competitive bidding of offset contracts, as they are not allowed [1] . This aligns with previous information stating no regulatory framework for offset contracts is in place. Therefore, this indicator is marked as Not Applicable.
NA
South Africa
In terms of the “Arms Deal”, the responsibility for the selection of subcontractors related to offsets rests with the main contractor with the caveat that Armscor can mandate that the main contractor subcontracts with enterprises owned by designated groups. A joint investigation into irregularities related to the “Arms Deal” found that main contractors did not follow formal or competitive procurement processes for the selection of subcontractors that would benefit from offsets agreements [1]. Although the case is from 2001, this is the most recent case of offsets and corruption. The 2022 report of the Zondo Commission revisited aspects of the Arms Deal and confirmed that the lack of transparency in subcontracting persists due to outdated procurement rules and absence of new offset agreements in two decades [2].
25 / 100
South Sudan
Offset or compensatory contracts in the South Sudanese defence sector are handled with virtually no transparency and minimal competition. Investigative reporting by the Organized Crime and Corruption Reporting Project (OCCRP) uncovered that in 2018 the Defence Ministry awarded an $81 million no-bid contract for military vehicles and communications equipment to Lou Trading, a single private firm, without formal competitive tender— the firm submitted the only bid and the Defence Ministry negotiated directly with it. Even internal legal advisors acknowledged the lack of urgency or justification for skipping open bidding, yet the finance ministry still approved the deal despite contradicting standard procurement rules and budget limits. [1] These offset-like contracts bypassed basic competitive standards, lacked documentation of alternate bids or evaluative criteria, and were driven by internal patronage networks rather than transparent, regulated processes [2].
0 / 100
Uganda
Offset contracts are not conducted as open competition, as there is no formal framework governing offset contracts, and defence procurement practices often lack transparency. Defence-related contracts, including potential offset agreements, are frequently single-sourced and rarely subject to adequate justification or external scrutiny. For example, the procurement of fighter jets was awarded to an Israeli businessman without any tendering or bidding process, highlighting the lack of transparency and oversight in such dealings[1][2].
0 / 100
Zimbabwe
There is no information on off-set contracts because the defence forces does not make the contracts available to verify this information [1][2].