National Quality Infrastructure (NQI) Reform

GENERAL INFORMATION AND MAIN OBJECTIVE

Commissioned by German Federal Ministry for Economic Cooperation and Development (BMZ)

Co-financed by European Commission

Implementing GIZ organisations PTB Consultant Partner organisation Ethiopian Ministry of Science and Technology (MoST) Current phase 04/2012 – 03/2015

Budget EUR 11.7 million• BMZ: EUR 6 million• European Commission: EUR 5.7 million

Objective The National Quality Infrastructure (NQI) guarantees reliable industry standards and norms in order to ensure high-quality products are available for Ethiopian consumers and the export sector. The NQI organisations take international standards and guidelines as their point of reference, e.g. for certifying Ethiopian products. That way, the Ethiopian industry is supported in increasing its competitiveness on international markets.

Implemented by:

CHALLENGE

The Ethiopian economy is experiencing strong growth and is also becoming increasingly active on international markets. As a result, demands for good quality of products, services and processes are increasing. The country needs a well-functioning quality infrastructure so that international standards and industrial norms can be enforced. Therefore, the Ethiopian Government is reforming the NQI. This reform is supported by the German development cooperation.To comply with the rules of the World Trade Organisation (WTO), the Quality and Standards Authority of Ethiopia (QSAE) has been restructured into four separate organisations. However, all four organisations are still weak and not yet able to meet the needs of industry and consumers.

OUR APPROACH

In addition to an authority that is responsible for setting standards and quality requirements, there are three government institutions that ensure that Ethiopian products and services meet quality standards. They test and certify industrial products, for instance, and ensure that units of measurement are correct. On behalf of the German government, GIZ and PTB consultants advise the four newly established NQI organisations on how to best comply with international standards. They also assist the organisations in their networking activities.The general conditions for the NQI reform are improving thanks to advisory services provided to the MoST. Training measures ensure that the ministry can manage the reform as effectively as possible. Demand for NQI services among industry and consumers needs to be boosted. Thus, GIZ promotes the Ethiopian consumer protection authority.

PROGRAMME IMPACTS

The Ethiopian parliament has adopted the NQI reform which is now being implemented. The new structure meets WTO requirements. Better quality products and services increase consumers’ standard of living and the competitiveness of the Ethiopian economy. • In 2011, 60% of Ethiopia’s private businesses were

satisfied with the services provided by the four newly established organisations (compared to 46% in 2008).

• Two mobile calibration trucks travel around the country guaranteeing the quality and comparability of units of measure. In total, 2,093 calibration services were provided to 74 companies country-wide.

• 34 companies have been trained in order to follow the international standard ISO 9000 in their quality management.

• Selected companies were certified according to international standards, e.g. two textile factories were awarded an Ecotex certificate and 20 agricultural companies were certified according to ISO 22000 in food safety.

ImprintDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Registered offices: Bonn and Eschborn

German Development Cooperation OfficeP.O. Box 100009, Addis Ababa, EthiopiaT +251 11 5180 200F +251 11 5540 764E giz-aethiopien@giz.deI www.giz.de/ethiopia

Photos: ECAE, GIZ archives, Michael Tsegaye © GIZ Updated: February 2014