On the 16 October 2015
The workshop was designed to give the EALA MPs for the Agriculture, Tourism and Natural Resources Committee an insight into the elements of quality infrastructure, how they inter-relate and how they benefit developing economies as well as the role of ARSO and the Pan African Quality Infrastructure (PAQI). (In the picture, Hon. Christophe Bazivamo, Rwanda (Chair) addressing the workshop as Hon. Chris Opoka Okumu Uganda (l) and Hon. Saoli Ole Nkanae – Kenya looks on).
The Workshop was held within the framework of the fact that it is increasingly being emphasised that unlocking the full export potential of African countries requires access to effective Quality Infrastructure (QI) as QI and export competitiveness is at the forefront of trade policy.
The Workshop, supported by the PTB-Germany, and the first of its own kind, was held under the Guidance, expertise and professional presentations by Dr. Oswald Chinyamakobvu who is a Metallurgical Engineer by profession and a QI consultant for several African countries, COMESA, SADC and various international organizations, Mr. Reuben Gisore (left), the ARSO Technical Director and who holds Master’s Degree in Development Studies and is currently pursuing a PhD in Development Studies, and Mr Willy Musinguzi a Biochemist by profession and the current TBT Officer at the EACA who has been instrumental in guiding the process of development of regional TBT and QI policy in the EAC.
The EALA MPs present were Hon. Christophe Bazivamo – Rwanda (Chair), Hon. Chris Opoka Okumu – Uganda, Hon. Isabelle Ndahayo – Burundi, Hon. Jeremie Ngendakumana – Burundi, Hon. Judith R. N. Pareno – Kenya, Hon. Leonce Ndarubagiye – Burundi, Hon. Mike Kennedy Sebalu – Uganda, Hon. Mumbi A. Ng’aru – Kenya, Hon. Dr. Odette Nyiramilimo – Rwanda, Hon. Saoli Ole Nkanae – Kenya and Hon. Susan Nakawuki – Uganda. Also present were the EAC, Secretariat Staff, Ms. Beatrice Ndayizeye, Ms. Elizabeth Gitonga, Ms. Maria Ruhere and Mr. Victor Manzi.
The Workshop discussed the elements of Quality Infrastructure; The Pan African Quality Infrastructure (PAQI); the foundation role of ARSO; the role of QI in supporting trade, industry productiveness and regulation; PAQI Contribution to the CFTA; the Vantage Role of EALA in Spurring a Coherent Continental Standardization and Technical Regulatory Framework: A Political Economy Perspective. (Left, Dr. Oswald Chinyamakobvu).
This workshop could have not been held at a better time than now when Africa’s overall growth momentum continues, with GDP growth expected to accelerate to 4.6% in 2015 and 4.9% in 2016 (United Nations 2014) after subdued expansion in 2013 (3.5%) and 2014 (3.9% (AfDB et al. 2015). Recent trends in African total trade flows exports and imports highlight a shift in trade dynamics. Domestic demand continued to boost growth in many countries while external demand remained mostly subdued because of flagging export markets, notably in advanced countries and to a lesser extent in emerging economies.
More than ever before and taking into the example of the EU New Standardisation approach, removal of non-tariff barriers to trade and implementing a regulatory system that is WTO compliant and accepted internationally has become a central political task for many developing and transitional economies. In seeking to expand intra African and international trade, it is virtually impossible for African countries to underestimate the importance of adopting and implementing international recognised and accepted Quality Infrastructure practices as they provide a vital link to global trade, market access and export competitiveness by contributing to consumer confidence in product safety, quality, health and the environment.
A quality infrastructure is based on a number of components. These are closely related and form a network whose logical links are based on a technical hierarchy. This national network must be geared to international requirements. Only if these requirements are met, are international commodity trading and exchange of services possible.
A National Quality Infrastructure can be defined as a highly integrated network of people, systems and organisations involved in the research, definition, development and promotion of quality goods, services and processes under its four pillars of Metrology; Standards development; Conformity assessment systems (testing, inspection and certification) and Accreditation. (Jeremie Ngendakumana – Burundi (R).
Standards development is a main pillar in the NQI as it provides the reference framework and basis for comparison of products. Standards may also be referenced in mandatory technical regulations aimed at protecting the consumer and the environment, and also ensuring health and safety. Standards are only effective if they are utilized, hence Conformity Assessment tools such as inspection, testing and certification are used to demonstrate compliance to standards, either in the voluntary or mandatory sphere. Conformity assessment is an integral component of the NQI as conformity assessment provides the bridge between standards and the market. Conformity assessment when applied correctly, help businesses to improve competitiveness and facilitate trade, as customers have greater confidence and trust in goods and services purchased. The two pillars, Standards Development and Conformity Assessment, are dependent on reliable measurement systems which fall under the discipline of Metrology. Metrology is the pillar that deals with the development of national primary measurement standards that maintain the highest level of accuracy for the country and are traceable to the international measurement system.
Finally, Accreditation is then imperative to instill confidence and trust in the services offered by conformity assessment bodies. Accreditation is the process where an authoritative body issues formal acknowledgement that a body or person is competent (i.e. capable and qualified) to perform specific tasks relating to conformity assessment.
The importance of standards and conformity assessment in both domestic and international trade was prominently noted in the 1994 Agreement on Technical Barriers to Trade (TBT Agreement). The agreement recognises that harmonised standards and conformity assessment procedures can expedite or seriously hinder the free flow of goods in international commerce. The agreement also requires that such procedures not be prepared, adopted, or applied with a view to or with the effect of creating unnecessary obstacles to trade.
WTO (2005) highlights the importance of standards in trade by stating that it is through sharing a common standard that anonymous partners in a market can communicate, can have common expectations on the performance of each other’s product, and can trust the compatibility of their joint production. This could also partly explain why intra-Africa trade is growing mostly within sub regions that are pursuing harmonisation of the Quality Infrastructure in their regions. For example, from 2010 to 2013, intra-African exports grew by 50% and by another 11.5% in 2013 to USD 61.4 billion. However, the share of exports between African sub-regions increased only from 11.3% in 2012 to 12.8% in 2013.
This could indicate a lack of development of regional value chains and low levels of trade in intermediates between African countries but if the AEO 2015 predictions are right and with the efforts of African leaders, Africa will soon be closing in on the impressive growth levels seen before the 2008/09 global economic crisis and this explains the importance of having held the Workshop to sensitise the African Policy makers on the overall importance of Quality infrastructure in Africa’s economic growth.
The Workshop re-emphasised on the role of Quality Infrastructure and African Integration Agenda highlighting the fact that since the inception of the Organisation of Africa Unity, now the African Union, African leaders have focused on the promotion of regional cooperation and integration in Africa in line with the objectives of the Treaty Establishing the African Economic Community, also known as the Abuja Treaty (1991, 1994). In deed the Workshop underpinned the reality that the need for the integration of the continent is stronger than ever if African countries are to overcome the constraints of marginalisation in the global marketplace and for building stronger regional African value chains for their domestic products and services.
The Workshop took note of the role of EAC in the Tripartite Agreement for a common Free Trade Area (FTA) initiative among the members of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC) and the fast-tracking the establishment of a Continental Free Trade Area (CFTA) by an indicative date of 2017 with the appreciation of the role of Quality Infrastructure in achieving their set goals. (Hon. Mumbi A. Ng’aru – Kenya (L), Hon. Susan Nakawuki – Uganda (c) and Hon. ShyRose S. Bhanji – Tanzania (r)).
It is to be emphasised that as the largest single free Trade area in the world, a computable general equilibrium (CGE) analysis by Cheong, Jansen and Peters (2013) estimates that the CFTA could stimulate intra-African trade by up to USD 35 billion per year, or 52% (above the baseline) by 2022. It could also lead to a USD 10 billion decrease in imports from outside the continent, while boosting agriculture and industrial exports by up to USD 4 billion (7%) and USD 21 billion (5%) respectively. The continent’s gross domestic product will rise from USD 1.7 trillion (2010) to USD 2.6 trillion (2020) pushing up consumer spending from USD 860 billion (2010) to USD 1.4 trillion (2020) and thus potentially lifting millions out of poverty (McKinsey Global Institute, 2010).
The level of awareness of the role being played by Policy makers on the development of Quality Infrastructure was with the evidence that regional integration and development support organisations in Africa are becoming increasingly aware that the development of the continent hinges on embracing standards. UNECA highlights the responsibilities of the African countries on the impact of standardisation in the expansion of global trade, regional integration, multilateral and bilateral free trade agreements and especially in establishing the CFTA. “The CFTA members will need to appreciate and recognise the importance of standards, metrology, conformity assessment and accreditation…. CFTA members will need to harmonise their practices in this area to achieve mutual product recognition…. Cooperation with national, regional and international standards bodies will need to be promoted. Members will thus need to develop and adopt a policy framework consistent with the provisions of the relevant WTO agreement.” (AU 2012).
The need for better Quality Infrastructure in Africa is directly aligned with the provisions and aspirations of Chapter XI Article 67 of the Treaty Establishing the African Economic Community (the “AEC Treaty”) which forms the basis for Africa-wide quality infrastructure to support African industrialisation, trade and socio-economic development and which is the basis for the formation of ARSO by the Organisation of African Unity (currently AU) and UNECA in 1977.
The EAC SQMT Protocol of 2001 and the EAC SQMT Act of 2006, themselves being direct offshoots of Article 81 of the Treaty Establishing the East African Community (EAC Treaty) is noteworthy. The ECOWAS Quality Infrastructure programme and the COMESA-EAC-SDAC Tripartite chapters (10 Annex 3) in Standardisation are directly aligned with the provisions and aspirations of Chapter XI Article 67. The institutional framework includes a Tripartite sub-committee on NTBs as well as national monitoring committees and focal points.
The 9th Ordinary Session of the AU Conference of Ministers of Trade convened at Ministerial level at the African Union Headquarters in Addis Ababa, Ethiopia from 4 to 5 December, 2014, called on:
i) All AU Member States that are currently not Members of ARSO should endeavour to attain membership by the year 2017;
ii) ARSO and other Pan African Standards organisations to refer to the year 2017 as African year of Quality Infrastructure;
iii) The AUC and ARSO should increase awareness and mobilise all stakeholders on the role of Quality Infrastructure;
iv) The AUC and Quality Infrastructure Institutions should assess the status of Quality Infrastructure in Africa; and develop a Strategic Plan on Quality Infrastructure in Africa.
An efficient Quality Infrastructure will support and strengthen Africa’s ability to establish and continually improve the quality of goods and services produced or acquired. The resulting benefits will be increased competitiveness, greater innovation, and a higher degree of technology transfer, thereby enhancing the capability of African firms to effectively trade nationally, regionally and internationally and contributing directly to economic growth.
Led by the Committee’s Chair, Hon. Christophe Bazivamo, Rwanda, the Legislators, while appreciating the role of ARSO and the 
Pan African Quality Infrastructure , all agreed that if African countries wish to reap from the benefits of expanded intra-African and international trade and should be part of new trade initiatives and discuss, compare and improve infrastructures in the context of global economic efficiency and market access for goods and services for both developed and developing countries. (Hon. Leonce Ndarubagiye – Burundi (L)).
The Honourable members were in agreement with the call of the 9th Ordinary Session of the AU Conference of Ministers of Trade of 4 to 5 December, 2014, that called on all AU Member States to join ARSO by the year 2017 urging on Burundi to ensure membership to complete full EAC membership in ARSO.
The Workshop concluded on noting that the EALA is uniquely positioned to unlock the impasse that results from overlapping mandates of EAC institutions by issuing acts, regulations and directives which address cross-cutting matters that ultimately have social, political and economic impacts.
The Legislators urged ARSO and PAQI to organise mobilisation and awareness workshops for all the entire EAC Parliamentarians, focus on other Regional Economic Communities Parliaments and the Pan African Parliament. ARSO together with AFRAC, AFRIMETS, AFSEC forms the PAQI Forum in collaboration with the African Union.
In a foreseeable future, the role of Pan African Parliament and the AU/AUC would be mirrored on to the role of the EU/EUC in the New Approach to standardisation in Europe where EU Legislators make legislations and directives on standards, technical regulations and Conformity Assessment and their implementation.