ARSO Secretary General speaks on AfCFTA adoption

Presidents from Africa have been urged to fast-track the implementation of the Africa Continental Free Trade Area, which is poised to see the continent increase trade by nearly 50 per cent by 2025. CNBC Africa recently spoke to the Secretary General of the African Organization for Standardization (ARSO), Hermogène Nsengimana, who expressed concerns over the slow pace of adoption of harmonized trade standards across the continent. Nsengimana emphasized the importance of having one standard for the entire continent to facilitate seamless trade among African nations. He stressed that the adoption of harmonized standards is crucial to promoting intra-Africa trade and economic growth. The interview shed light on the significant impact that differing trade standards have on businesses and the economy. Having multiple standards across the 55 countries in Africa hinders the ease of exporting goods to other nations, thereby impeding intra-Africa trade, which currently stands at a mere 16 percent. Nsengimana highlighted the importance of harmonizing standards under the Africa Continental Free Trade Area (AfCFTA) agreement to promote trade harmonization and boost various value chains, such as the automotive and agricultural sectors. Harmonization of trade standards is essential to ensuring compatibility and connectivity within these value chains, ultimately enhancing trade efficiency and increasing export volumes. Moving forward, ARSO has outlined three key priorities to drive the harmonization of standards and promote intra-Africa trade. Firstly, the organization is aligning national quality policies with the Africa quality policy, endorsed by the heads of state. This alignment aims to streamline the work of standards bureaus and regulators in African countries. Secondly, ARSO is collaborating with other quality infrastructure institutions to develop an Africa continental technical regulation framework, with the goal of establishing uniform technical regulations across the continent. Lastly, the organization is focusing on priority sectors such as automotive, agriculture, food products, pharmaceuticals, textiles, and leather to prioritize standard harmonization and drive growth in these key industries. Nsengimana emphasized the significant economic losses incurred due to the lack of harmonized standards in Africa. Citing a study by the Economic Commission for Africa (UNECA), he noted that successful implementation of the AfCFTA and harmonized standards could potentially increase trade in the agriculture sector by 41.5% by 2045, compared to the current intra-Africa trade of 16%. Similarly, the manufacturing industry could see a 39% boost by harmonizing standards and enhancing trade practices. The adoption of harmonized trade standards not only facilitates trade among African nations but also fosters economic growth, enhances competitiveness, and creates numerous opportunities for businesses and industries across the continent.