In recognising the Benefits of Standards, ARSO Joins the International Community in Celebrating the World Standards Day 2024, with a focus on leveraging the opportunities under the AfCFTA, the potentials of Regional Value Chains, the SGD Agenda 2030/AU Agenda 2063, and the 4th Industrial Revolution.

Standards Harmonisation Activities in Togo

Having harmonised 1840 African Standards (within Africa/AfCFTA Trade Priority Sectors such as Agribusiness, Pharmaceutical, Automative, Textile and Leather), and with different Conformity Assessment Guidelines, and with such programmes as ARSO Consumers Committee, ARSO DISNET (for Transparency), ARSO Awareness Creation and Capacity Building (ARSO Monthly Webinar Series,), and with the anticipated standards to be harmonised by ARSO is comparable to the 4,547 HS6, Tarif lines for the AfCFTA, ARSO joins the international community in celebrating the 2024 World Standards Day under the theme,  Shared Vision for a Better World: Standards for the Changing Climate.  The chief principal mandate of ARSO is to address the challenges of the TBS through harmonisation of Standards and Conformity Assessment, and create greater awareness and capacity building on the challenge of the TBTS in Africa, to facilitate Intra -Africa Trade and Sustainable development in Africa. These Developments have taken place as ARSO continues to reposition itself to address the TBTs challenges in Africa and while empowering member States, SMEs and the Policy Makers on the role of Standards, not only in enhancing Africa’s integration Agenda, but also Africa’s industrialisation and Integration Agenda and the competitiveness of the African regional Value Chains.

ARSO joins the international Community in celebrating the World Standards Day, 2024, with the Changing Narrative and perspective of Standardisation in Africa to facilitate Trade and Sustainable Development and with a great support from the standardisation Stakeholders, partners and Institutions playing Active Role, with increased reference to standardisation (and its attendant Compliance Infrastructure) in trade and economic policies and as a regulatory instrument and development tool, in Africa by Development Partners and Institutions, Political actors, Policy Makers, Economists and Industrialists, and the African Union in its Summit decisions, and the bold initiatives being undertaken by the standardisation stakeholders and Partners (Afreximbank, AfDB, UNECA, UNCTAD, TMA, UNIDO, ASTM Inte., ANSI, OSP, WTO, ITC) in Africa, as  clear pointers on the future prospects of Africa in embracing standardisation as a Key Pillar in Africa’s Industrialisation, Integration and sustainable Development, in the context of the SDGs 2030 and Agenda 2063, with ARSO playing a an eminent role of ARSO.  For Example, UNECA and the African Union have undertaken to emphasise on the responsibilities of the African countries on the need for effective Quality Infrastructure Since the Lagos Plan of Action 1980, Chapter VII, Trade and finance, Trade, Intra- African trade expansion, paragraph 250 (k and I), and Abuja Treaty of 1991 Establishing the African Economic Community, under Chapter XI on Standardization and Measurement Systems, Article 67 Chapter XI, and the approval and adoption of the African Quality Policy (AQP) by the African Union (AU) Executive Council on 2nd – 3rd February 2022 and the African Continental Technical Regulatory Framework (ACTReF) by the African Union Specialized Technical Committee (AU/STC) on 17th May 2024, to facilitate the establishment of the Common Regulatory Framework in Africa in the context of the TBT Annex 6 and SPS Annex 7, is exemplary. As a policy instrument, the AfCFTA Agreement, under the TBT Annex 6 and SPS Annex 7, addresses the TBTs and SPS issues, and binds all State parties to commit to their progressive elimination and calls for cooperation in their development, harmonisation and implementation.

UNECA in its Economic Report of Africa 2015 highlights the importance of such institutions as PAQI (AFRAC, AFRIMETS, AFSEC, ARSO) in addressing the TBT issues, appreciating the fact that “stringent standards and sanitary and phytosanitary measures, due to Africa’s lack of quality-assurance and easily accessible standard setting and monitoring bodies, increase costs for African producers, particularly in developed country markets, highlighting the self-evident need for a coordinated continental actions. The African Development Bank’s (AFDB 2019) African Economic Outlook projected Africa’s GDP growth to accelerate to 4.0 percent in 2019 and 4.1 percent in 2020 but only if there will be increased intra-African Trade spurred by growth of industrial activities and concerted efforts towards addressing the Technical Barriers to Trade (Standards and the associated Compliance systems) that have been a great hindrance to the free movement of Goods and services in Africa (AFDB 2019). The UNCTAD (2015), the 2015 Economic Development in Africa Report on Unlocking the Potential of Africa´s Services Trade for Growth and Development cites the need for better regulation and policies (Ref. Quality Policy) to unleash the potential of Africa’s services economy and propel the continent as major global player in services trade, for sustainable Development. The World Bank (2013) highlights the need for improving quality assurance and management systems by firms, and better monitoring, evaluation, product testing and packaging methods to respond to changing technical requirements of Global trading partners and sustainable development. UNIDO (2016) is categorical that setting up a standardisation system, standards and related infrastructure for compliance (Quality Infrastructure System) is one of the most positive and practical steps that a developing nation (African countries) can take on the path forward to developing a thriving and sustainable economy as a basis for prosperity, health and well-being. USAID (2016) advices on the inclusion of the standardisation systems (metrology, accreditation, standards, certification, and quality (MAS-Q) in the development of economic policies as understanding the link between standardisation (MAS-Q) and global trade, industrialization and export competitiveness should be an integral part of economic development and trade policy.  UNCTAD (UNCTAD/ITE/TEB/2005/1) highlights the need for developing policies that address the standardisation needs and challenges of the SMES in Africa, as with Globalization, the TBTs (e.g. regulations, product standards, testing and certification procedures), and sanitary and phytosanitary standards, and SPS (e.g. food safety and animal and plant health standards), pose the greatest challenge to the SMEs in developing regions such as Africa in participating in regional and global value chains and accessing new markets, unlike the SMEs in the developed regions.

Standards Harmonisation Activities in Accra, Ghana

On a wider Scale, various Authors and Experts ((Dr. Sarwar Hobohm, UNIDO; Robert H. Allen, 2000; Utterbac J.M., 1994; Uwe Miesner, 2009; Christina Tippmann- World Bank, 2013; UNCTAD 2015; Farahat, 2015; unido, 2006; Eoin O’Sullivan, 2012; Ramachala, 2013; COMESA (Cheelo et al., 2012); EAC (Karingi et al., 2016; KAM, 2017); ECOWAS & UEMOA (de Roquefeuil, 2013; Laski et al., 2014); SADC & SACU (Edwards et al., 2008; Cheelo et al., 2012); AfCFTA (UNECA, 2018); Japanese Industrial Standards Committee, 2005; Fiona Stokes, 2011; BSI, Standards matter to consumers, How standards benefit us all, every day ; USAID, 2016; UNIDO 2016; ISO 2014, Economic Benefits of Standards; Jae-Yun Ho, 2013; ARSO, 2013, Benefits of Standards)) have highlighted the crucial role of Standards in promoting trade and Sustainable Development, for example:

• In expanding trade, in particular, standards and technical regulations are essential for market access. Standards (voluntary) and technical regulations (mandatory) define what goods and services can and cannot be exchanged, and outline procedures under which such exchanges are and are not permissible. Standards define how products, processes, and people interact with each other and their environments. They enhance competitiveness by offering proof that products and services adhere to requirements of governments or the marketplace. When used effectively, they facilitate international trade and contribute to technology upgrading and absorption.
• Globally relevant standards make it easier for many companies’ particularly small and medium enterprises to get their products certified and on the shelves in countries around the world, allowing them to take part in global value chains, benefit from technology transfer, and compete on a more equal footing. Similarly, nations that incorporate harmonised standards into their policies and regulations allow their citizens access to a wider selection of high-quality goods, while also providing protection against dangerous or faulty products and services.
• The provision of Standards contributes to economic growth by increasing the volume of trade, and promoting innovation through the dissemination of research and technology. Standards help companies to reduce costs and increase the quality of the goods and services they produce. They allow companies to develop new markets for existing goods and services, as well as create new goods and services for existing markets.
• Standards enhance product reputation and provide for lesser market risks for companies introducing products to the market. Standards provide a vital link to global trade, market access and export competitiveness, enhance product reputation and provide for lesser market risks and simplify large-scale production processes thus reduce costs.
• Standards help in developing the market for products and services based on the newest technologies. Companies that participate actively in standards work have a head-start on their competitors in adapting to market demands and new technologies, and enjoy reduced research risks and development costs.
• When used effectively, standards play an important role in global trade, contributing to technology upgrading and absorption, and protecting consumers and the environment. Minimum quality and safety standards allow consumers to assess the quality or safety of a product before purchasing it and enable regulators to exclude unsafe products from the market.
• Adherence to widely recognized international or inter-company standards can help the sectors, which earlier had been segmented by variable standards, to enjoy economies of scale by reducing conformity assessment costs and increasing output due to the emergence of new potential customers.
• Standards are used to codify the technical characteristics and market preferences for products and processes, facilitating knowledge absorption and technological change. Standards ensure safer, healthier, more environmentally sound and market-ready products, improved quality and reliability, better operational compatibility between products, greater consistency in the delivery of services, easier access to and greater choice in goods and services, better product information, suitable products for vulnerable populations, lower costs and greater competition hence lower prices for consumers.

In celebrating the World standards day, 2024, ARSO remain focused on the fact that the goals (with their targets) of the A2063 – 20 goals with 174 targets; SDGs- 17 goals with 169; the AfDB (AfDB – Hi5s 10-year strategy (2013-2022) broadly converge on social-political and human capital development, inclusive economic growth, peaceful societies, accountable institutions, and environmental sustainability dimensions, in which standardisation plays a key role, in ensuring the economies of scale, exposure to competition and the diffusion of technological knowledge. For this, Standards remain the invisible architecture and essential building blocks, of markets, manufacturing, technology, health care, Education and trade, and controls, entirely, the industries and every sector of life on a global scale.

Globally relevant standards make it easier for many companies to take part in global value chains. Since value chains, over time, become larger, more complex and increasingly need to function efficiently, GV, production in multiple countries requires a sufficient amount of coordination and communication between the collaborating market actors. Formal standards are one means to help fulfil these requirements and are therefore essential for production in today’s GVCs (Gereffi, Humphrey, & Sturgeon, 2005; Nadvi, 2008). Standards facilitate the process of integration, because of the information they provide about the properties of goods and services. In other words, they are the “glue” that keeps GVCs together. Standards ensure collaboration between firms and allow for the diffusion of innovation. New technologies are often codified in standards and are thus made publicly available (OECD, WTO, and World Bank 2014). By supplying the proper flow of information, standards make it possible for GVCs to exist (WTO 2005).

In celebrating the World Standards Day, 2024, the keenness for Sustainability standardisation initiatives by ARSO are informed by the global focus on the need for sustainable trade and closer partnerships in the implementation of the United Nations Sustainable Development Goals 2030 (SDG 2030) and which represents a major challenge especially in terms of an effective continental standardisation infrastructure, Capacity Building and Awareness Creation, and Transition into Sustainable Production and consumption methods that sensitive to Climate change initiatives. This forms the basis for ARSO Strategic Direction as summarised in its Vision, Mission and Goals, under the current strategic Plan 2022-2027 and as per Aspiration 1 of AU Agenda 2063, where Africa is aspiring for a Prosperous continent “Based on Inclusive Growth and Sustainable Development, while ensuring that “the environment and ecosystems are healthy and preserved, and with climate resilient economies and communities” and advocating for strategies to ensure that “Africa participates in global efforts for climate change mitigation”. In both SDGs 2030 and the Africa Agenda 2063, and with such regulations as the EU Deforestation Regulation (EUDR), the Corporate Sustainability Due Diligence Directive (CSDDD), there is currently a rapid shift towards Sustainable Consumption and Production (SCP) patterns, which are intended to promote social and economic development within the carrying capacity of ecosystems as per the UN 2015 SDG 2030, SDG 12, guidelines on Responsible consumption and production. The Challenge therefore remains on how to make production, Trade and consumption sustainable, with a focus on internalising social, economic and environmental concerns in production and trade, taking into account social and environmental requirements in the production and Manufacturing process. In recognition of the role of standards in Production and Trade policies and with the rapid shift towards Sustainable Consumption and Production (SCP) patterns, already, the standardisation community have witnessed the emergence of the Voluntary Sustainability Standards (VSS) comprising eco-certification schemes, labelling programs and private standards (like Global Gap, Fairtrade, Rainforest Alliance and Organic certification, and ARSO’s Eco Mark Africa (and sustainability standards)) which provide the opportunity by ensuring that the negative social and environmental consequences are addressed and which contributes to better protection of the environment and the ecosystems and ensuring sustainability in the production/ systems/Value Chains.

In celebrating the World Standards day, 2024, and while highlighting, conclusively, that, though, the International trade and investment provide a path for African countries to reach their full economic potential, the Experts and Scholars (Trade and Economists) highlight the need for tapping into the potentials and sustainability of the regional value chains across the continent, and for which regional trade agreements, like the AfCFTA, the effective Quality Infrastructure (with already a guiding African Quality Policy and ACTReF) with a strong standardisation Community under PAQI, ARSO, included, provide the best mechanisms. Experts’ opinion about the sustainable regional value chains is centred on the fact that:

1. The RVC strategy envisages a production system which is comparable to the global-scaled one of the GVCs, but differs in that it is regionally aggregated and results in end products exported by a country within the region. The idea is to leverage, due to the African population, urbanization, growing middle class level and resources endowment, the growing local demand for finished goods to shape regional production chains that are not constrained by the demanding norms required in GVCs, and that centre on the specificities of local demand and consumption practices.
2. While less dynamic than linkages to GVCs due to the smaller size of the end-markets, RVCs could trigger sustainable industrialisation by enhancing integration, productivity, and division of labour in the region and incorporate indigenous firms into a region-wide logistical system that will be gradually optimised. Once the RVCs are established, the end products can also be exported globally, particularly to other developing markets, and this lays foundations for consolidating and upgrading the process so as to link it, as a next step, to GVCs.

• In the regulatory context, African firms face non-tariff restrictions, including highly demanding standards to be complied with, in the GVCs. By contrast, dealing with the regional regulations, including standards and conformity assessment, in which they are embedded offers them far more opportunities to grow, with the ability to navigate local institutions, including informal ones, giving them a major competitive advantage over extra-regional competitors, hence the growth in intra-regional and intra-African Trade.

1. Likewise, the cultural dimension of manufacturing production is a key determinant of RVCs’ relevance in Africa, since one major aspect is the focus on the regional consumption markets, for which the African Standards are harmonised to suit. This gives regionally based manufacturers the opportunity to design and produce differentiated products adapted to the cultural preferences of regional consumers and the needs created by their environment, which provides significant added value in terms of market capture, and indeed goods for the intra-regional and intra-African Trade.
2. Lastly, RVCs are vehicles for sustainable industrialisation through quantitative spillovers resulting from industrial development, such as jobs and enterprise creation, and increased exports and government revenues. In addition, qualitative spillovers are expected, as greater inter-firm linkages throughout the RVCs (trade and investment) can result in technology and knowledge transfers, enterprise formalisation, and business professionalization.

And as per the theme of the 2024, World Standards, understandably, the Artificial Intelligent and the Fourth Industrial Revolution (4IR) characterized by the fusion of the digital, biological, and physical worlds, as well as the growing utilization of new technologies such as artificial intelligence, cloud computing, robotics, 3D printing, the Internet of Things, block chain and advanced wireless technologies, among others, presents significant opportunities as well as challenges for Africa (Landry Signé, 2020).  Under the AfCFTA, with aligned policies and procedures, the continent can adapt to the rapid changes of the 4IR and leverage it to accelerate the development of RVC and participation in global value chains. Already, with the 4 IR Standardization Strategy (A4IRSS), launched Officially on 9th December 2021, ARSO seeks to provide direction on standardization to leverage on the opportunities provided by the 4IR. Through the preferred Theory of Change (ToC), the strategy should help in the identification of activities that would contribute to improved approaches and coordination of standardization in the 4IR in Africa. The strategy seeks to bridge the gap between the physical and digital world, through collaboration of standardization experts, technology communities, stakeholders and regulatory agencies in assessing industry standards and policy harmonization that enhances for leveraging the 4IR opportunities.

Happy World Standards Day, 2024

Shared Vision for a Better World: Standards for the Changing Climate.