The African Export-Import Bank (Afreximbank), the International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org) and the African Organization for Standardization (ORAN) announce the launch of a new initiative called 'Harmonization of Standards for Pharmaceuticals and Medical Equipment in Africa' '. This initiative, launched under the Arab-African Trade Bridges Program (AATB), aims to strengthen the quality and reliability of medicines and medical equipment imported or produced in Africa.

The harmonization of standards is an essential criterion for the implementation of the African Continental Free Trade Area (AfCFTA). It ensures that producers of goods on the continent comply with a set of regulatory requirements and quality standards that allow them to supply the continental market with products that meet these standards. The harmonization of standards also improves the quality of manufactured goods production in Africa and thus boosts intra-African and Arab-African trade and investment, one of the main objectives of the AATB.

The initiative, which will be implemented over three years, has as its first step the harmonisation of standards for pharmaceuticals and medical utility equipment in the response to the COVID-19 pandemic. The second step will be to assess the level of adaptability of existing international, regional and national standards to the needs of the pharmaceutical industry in Africa. The third phase will lead to the harmonization of the corresponding African standards and their implementation.

Mr. Hani Salem Sonbol, Director General of ITFC, said that " From a trade development perspective, harmonizing pharmaceutical and medical equipment standards in Africa is a crucial first step in developing local production and trade within the sector. These standards will provide a necessary baseline to regulate the sector more effectively, improving the quality of life-saving medicines and medical equipment produced on the continent. As a result, access to appropriate medicines, vaccines and other health services will be easier, more reliable and affordable for those who need them. Finally, this initiative will also enable Africa to benefit from a booming pharmaceutical sector, expanding business opportunities locally and across borders, creating a long-term sustainable socio-economic impact on the continent." 

By building capacity for local production of quality products and services, the initiative will increase trade and investment in Africa's health sector, one of the objectives set out in the Framework of the AfCFTA.

Ms. Kanayo Awani, Managing Director of Afreximbank's Intra-African Trade Initiative, said : " At a time when the demand for quality medicines and medical devices is growing, Africa needs to strengthen regional value chains to develop a supply of  quality health products and services. It should also help strengthen the continent's resilience to pandemics such as COVID-19 in the future. At the same time, this initiative will encourage intra-African trade in pharmaceuticals and medical consumables based on the African Continental Free Trade Agreement." 

In the current context of the fight against COVID-19, the harmonization of standards will facilitate the development of technical regulations of the same levels between African countries. As a result, the marketing of medical supplies and equipment from one country to another will be easier and faster.

In the long term, the initiative will lead to the emergence of regional supply chains for pharmaceuticals and medical devices, stimulating an ecosystem of innovation, local production and drug development for neglected diseases.

Dr Hermogène Nsengimana, Secretary General of ORAN, said: " While the COVID-19 pandemic has created social distancing as a new normal, it has also brought Africa together by opening our eyes to the need for its industrialization. Standards for face masks and hand sanitizers provided by ORAN and other standards bodies have been widely used by African SMEs to develop locally manufactured personal protective equipment. This highlights, once again, the role of standards in the industrialization, security and trade sectors. This initiative, together with Afreximbank and ITFC, will not only help increase local production, but will also build trust in local products and thus enable cross-border trade and investment in pharmaceuticals and medical equipment." 

The African Organization for Standardization (ORAN) plays a key role in the development of standards, using existing principles and procedures in the African Standards Harmonization Model (ASHAM). ORAN's involvement will be supported by its Council, in addition to a joint advisory group, composed of regional economic communities and a series of technical committees that will carry out the harmonization work using the resources provided by Afreximbank and the ITFC under this grant.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

Press contact:
International Islamic Trade Finance Corporation (ITFC)
Tel: +966 12 646 8337
Fax: +966 12 637 1064
Email: [email protected]
Twitter: @ITFCCORP
Facebook: @ITFCCORP
Linkedin: International Islamic Trade Finance Corporation (ITFC)

Afreximbank
[email protected]
Twitter: https://bit.ly/33oGjsx
Facebook: https://bit.ly/3bVzMcB
LinkedIn: https://bit.ly/3bYgSlp
Instagram: https://bit.ly/2FiR4oh

AATB
Twitter: @aatb_program
Facebook: @aatbprogram
E-mail: [email protected]

About the International Islamic Trade Finance Corporation (ITFC): 
The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org) is a member of the Islamic Development Bank (IDB) Group. Its purpose is to advance trade among OIC Member Countries, ultimately contributing to its priority objective of improving the socio-economic conditions of people around the world. Starting operations in January 2008, itfc has provided more than $51 billion to finance trade in OIC Member Countries, making the Corporation the leading provider of trade solutions to meet the needs of OIC Member Countries. By acting as a catalyst for trade development among OIC Member Countries and beyond, the Corporation facilitates easier access to trade credit for entities of Member Countries and provides them with the tools to strengthen their trade capacity. which allows them to be competitive on the international market.

About Afreximbank :
The African Export-Import Bank (Afreximbank) (www.Afreximbank.com) is a pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. Afreximbank was established in October 1993 and is owned by African governments, the African Development Bank (AfDB), African private and institutional investors, and non-African public and private investors. The Bank was established under two basic governing documents, namely the Agreement signed by the Member States, which confers on it the status of an international organization, and the Charter, initialled by the shareholders, which governs its structure and functioning. Afreximbank deploys innovative structures to provide financing solutions that drive the transformation of The African trade structure and accelerate industrialization and intra-regional trade, thereby supporting economic expansion in Africa. As of December 31, 2019, the Bank's total assets and guarantees stood at US$15.5 billion.  and its shareholders' funds amounted to US$2.8 billion. Voted "African Bank of the Year " in 2019, Afreximbank disbursed more than US$31 billion between 2016 and 2019. Afreximbank is rated A- by GCR International Scale, Baa1 by Moody's and BBB- by Fitch. The Bank is headquartered in Cairo, Egypt. For more information, please visit: www. Afreximbank.com.

About The African Organization for Standardization (ORAN): 
The African Organization for Standardization (ORAN) (www.ARSO-oran.org) owes its origins to the pan-African socio-political and economic context and climate that prevailed in the 1970s. The post-independence period of most African countries had largely pushed for the idea of the creation of a continental standardization body. And under the aegis of the Organization of African Unity (OAU), now the African Union, the feeling was that of pan-African solidarity and collective autonomy born of a shared destiny. Normalization had been seen as the guiding thread and foundation of Africa's economic integration agenda and a path to connecting the new African economy with the rest of the world, thus enabling the development of a strong African economy that would ensure the continent's economic prosperity.

In 1977 ORAN was declared by the OAU as an intergovernmental organization with a mandate to harmonize standards and control procedures to increase intra-African and world trade. Under the AfCFTA agreement, ORAN is responsible for developing standards for use by States Parties. The standardization work is carried out by ORAN member experts, appointed by the Member States of the African Union and the process is steered according to the African Standards Harmonization Model (ASHAM).

About the Arab-African Trade Bridges (AATB) Program :
AATB is a multi-donor, multi-country and multi-organization programme that aims to promote and increase trade and investment between African and Arab countries, support trade finance and export credit insurance, and improve existing trade capacity building tools. The programme focuses specifically on key sectors of agriculture and related industries, including textiles, the health industry, including pharmaceuticals, infrastructure and transport, as well as petrochemicals, construction equipment and technologies.