KEBS MD: Harmonization of standards can unlock AfCFTA’s $3.4tn market

The African Continental Free Trade Area (AfCFTA) holds the promise of transforming the economic landscape of the continent by promoting intra-African trade. However, the success of this ambitious initiative hinges on the harmonization of trade standards among African countries, as highlighted by Esther Ngari, Acting Managing Director of the Kenya Bureau of Standards (KEBS). According to Ngari, the current intra-African trade stands at a mere 15 percent, far below the envisioned growth projection of 52 percent by 2025. Several challenges, including trade barriers and technical obstacles, have impeded the realization of this potential. Ngari emphasized that to boost intra-African trade, harmonization of standards is crucial. Standard harmonization would eliminate technical barriers to trade, allowing for seamless movement of goods and services within the continent. Ngari underscored the role of national standards bodies in coordination with the African Organization for Standardization (ARSO) in harmonizing standards across Africa. The objective is to create a unified standard that is recognized and accepted throughout the continent, streamlining certification processes and enhancing trade efficiency. Ngari stressed the importance of stakeholders' engagement and awareness programs to educate traders and regulators on the benefits of standard harmonization. Through initiatives like webinars, KEBS and ARSO have been working to sensitize stakeholders and foster a common understanding of the significance of harmonized standards. Despite the progress made, challenges persist in the full implementation of AfCFTA, particularly in sectors where standard harmonization gaps exist. Ngari pointed out that gaps in understanding and recognition pose significant obstacles to compliance with trade standards. Mutual recognition agreements are essential to enable countries to accept the certification marks of other nations, avoiding redundant testing and expediting trade processes. Establishing mutual recognition frameworks, similar to those within the East African Community, will be pivotal in facilitating seamless trade flows across African borders. Ngari highlighted the need for continued collaboration and cooperation among African nations to bridge standard harmonization gaps and fully leverage the potential of AfCFTA. By aligning trade standards and enhancing mutual recognition mechanisms, African countries can unlock the $3.4 trillion market envisioned by the initiative. As Ngari aptly stated, 'Harmonization of standards is very, very key to increase the intra-African trade.' The journey towards realizing the transformative impact of AfCFTA requires a concerted effort to harmonize standards, foster cross-border collaboration, and streamline trade processes, ultimately propelling Africa towards economic growth and prosperity.