why the need for Afreximbank AQAC

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Really Smart

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English

Prompt:

why the need for Afreximbank AQAC
The Afreximbank African Quality Assurance and Certification (AQAC) is a crucial initiative aimed at enhancing the quality of goods and services traded within Africa. One of the main reasons for the establishment of AQAC is to address the issue of non-tariff barriers that hinder intra-African trade. These barriers often arise due to differences in quality standards and certifications across African countries. By having a unified quality assurance and certification system through AQAC, businesses can easily comply with regulations and ensure their products meet the required standards, thereby facilitating trade within the continent. For example, a company in Nigeria producing agricultural products may face challenges when trying to export to South Africa due to differences in quality standards. With the implementation of AQAC, the company can obtain a standardized certification that is recognized across African countries, making it easier to access new markets. According to a report by the United Nations Economic Commission for Africa, intra-African trade remains low at only 15%, compared to other regions such as Europe and Asia where intra-regional trade accounts for much higher percentages. This highlights the importance of initiatives like AQAC in promoting trade within Africa and boosting economic growth. An analogy to understand the need for Afreximbank AQAC could be comparing it to a passport. Just as a passport allows individuals to travel freely across borders, AQAC serves as a passport for goods and services, ensuring they meet the necessary quality standards to trade within Africa. One verifiable fact is that Afreximbank AQAC was officially launched in 2019 and has since been working towards harmonizing quality standards and certifications across African countries to promote intra-African trade.