Technical barriers to trade underestimated

African exporters could qualify for preferential tariffs under the AfCFTA and still find their products blocked from target markets because they do not meet local regulatory requirements. According to Johan Eksteen, SGS Sub-Saharan Africa business manager for connectivity and products, the focus on tariff reductions has overshadowed the technical barriers businesses encounter when moving products between African countries. “The AfCFTA is one of the most important developments in African trade in decades,” he told Freight News. “While much of the discussion has focused on tariff reductions and trade facilitation, successful cross-border trade depends equally on regulatory compliance, product quality and conformity assessment.” Eksteen said SGS was already seeing increased interest from manufacturers, importers, retailers and distributors looking to expand across African markets. However, preferential tariffs did not remove the need to comply with the requirements of each destination. “Every target market has specific regulatory requirements, safety standards, labelling obligations and product quality expectations that must be met before goods can enter the country,” he said. This is particularly relevant to consumer goods such as clothing, footwear, electrical products and cosmetics. SGS has identified growth opportunities in consumer goods and retail supply chains, as well as agricultural exports and industrial manufacturing. E-commerce is also expected to create opportunities as businesses seek access to customers in other African markets. “Countries with growing consumer populations and expanding retail sectors across East, West and Southern Africa present significant opportunities for exporters seeking regional expansion,” said Eksteen. He said more integrated manufacturing and distribution networks would require companies to take a consistent approach to compliance across several markets, rather than treating each country in isolation. Despite the opportunities, many businesses continued to underestimate the effect of technical barriers to trade. “In practice, companies encounter different national product standards, labelling requirements and country-specific certification schemes. Testing requirements may also differ between markets, while businesses do not always fully understand the applicable rules of origin or market-entry requirements.” A product accepted in one African country may therefore require further testing, inspection or certification before it can be sold elsewhere. If these requirements are identified only after the goods have been shipped, the result can be border delays and additional costs. Eksteen said greater harmonisation of standards and mutual recognition of conformity-assessment results would be essential to realising the benefits of the AfCFTA. This would allow participating countries to accept testing or certification completed in another market and reduce the need for businesses to repeat the process. In the meantime, companies should not treat compliance as an afterthought. Before shipping goods, exporters need to establish which national regulations apply and whether product testing is required. They should also confirm labelling requirements and any registration obligations in the destination market. LV