The Role of ISO Standards in Africa’s Economy

Trade is crucial for the growth of any country more so African countries most of which envisage growing in double digits. African countries must therefore respond to local and global markets demand.

In the recent past we have witnessed a weakening of most if not all the African currencies underpinned by weak exports leading to macroeconomic instability in the continent.

In this article we are going to briefly explore what roles ISO standards can play in developing of the African continents economy.

One of the major impediments of trade between African nations with the rest of the world has been inability of African exporters to meet production and quality standards which is an obligatory requirement especially the European Union and United States of America.

The fact of the matter is without addressing market access and international standards compliance issues, African firms and farmers will not be able to take full advantage of market opening initiatives such as United States of America’s African Growth and Opportunity Act (AGOA) and European Union’s everything but Arms Initiative.

Director General of World Trade Organization in his 29^th General ISO assembly 2006 address noted that the absence of international standards can be a serious impediment to trade.

Africa stands to spur its economic growth to double-digit figures through participating in standards development, adopting and complying with ISO international standards.

ISO international standards offer African countries convenient solutions that will not only respond to the local and global market demands, but also be a panacea to the technological problems that it encounters. By progressively and consistently implementing these standards, African countries benefits in the following ways:

Conformity assessment has become part and parcel of world trade. Many products require testing and subsequent compliance to respective standards or regulations before getting access to certain markets. With cross-border trade between trading blocks, country to country, an independent third party will be required to access the production processes, carry out testing, and certify products or systems. Use of ISO standards like ISO 17025, ISO 17020 and ISO Guide 65 represent international consensus and their use helps in consistency and coherence of conformity assessment worldwide and so facilitates cross-border trade.

No country can successfully develop without addressing the critical issue of demand and supply on energy. African population is steadily increasing and most Afrin countries are grappling to supply the ever rising energy demands to its ever increasing population. However, the issue of prudent use of meager resources of energy is not being adequately addressed by implementation of ISO 50001:2011 (Energy Management Systems). African nations will be able to use its available energy sources efficiently and use data to better understand and make decisions concerning energy. It is estimated that the standard could influence up to 60 % of the world’s energy use!

The recent surge in terrorist attacks In Kenya and Nigeria has greatly affected their respective economies. The Iceland Volcano had significant impact on the Kenyan economy for example.

The Kenyan vegetable and flower industry employs tens of thousands of workers; it is one of largest contributors to the Gross Domestic Product and largest foreign currency earners.

During the volcano ash eruption, Kenya was losing approximately three million US dollars per day.

The recent spate of terrorist attacks in Kenya has had a negative impact on tourism leading to the cancellation of hotel bookings and scaring investors. The publication of the ISO standard on risk management (ISO 31000:2009) presents both Kenya and the African continent (both governments and the business community) with an opportunity to focus on all potential risks to avert future crises if this standard is implemented. ISO 31000 is a must-have solution for all organizations and the whole of society

It is in no doubt that ISO standards offer practical solutions to technological problems. The active participation and interest of every developed country in ISO’s work means that international standards represent international consensus on optimum technological solutions to standardization problems. This is achieved by making each activity within the overall process such as design, development, manufacturing and supply, more effective and efficient.

Most African countries export primary produce such as horticulture; tea, coffee, cocoa beans etc. A critical understanding of the link between trade, international standards and export competitiveness will be key to unlocking Africa’s potential for economic growth.

Viffa Consult recons that addressing the effect of product standards both as barriers to trade and opportunities to expand market access is likely to be one area where action will have a high rate of return.

For more information on how your organization can leverage on ISO or how as an  individual can get ISO certification kindly get in touch on info@viffaconsult.co.ke / victor@viffaconsult.co.ke or call on +254 723982528 / +254 775 578 148