Phenix Logistics, formerly the Uganda Garments Industry Limited (UGIL), is to export garments to the US under the African Growth and Opportunity Act (AGOA), a top trade ministry official revealed in Kampala this week.

AGOA is a US government initiative that allows sub-Saharan African countries to export garments to the US market quota and tariff free.

The principal commercial officer, Davis Bamuleseyo, revealed at a business forum on Monday that the company will send the first consignment of T-shirts on February 23.

Phenix manufactures garments from organic cotton.

“They (Phenix) have been working with the Whitaker Group to reach this stage,” Bamuleseyo said.

The Whitaker Group is contracted by the Government to promote local products in the US market.

The US Senate last year extended AGOA to 2015, giving investors and traders the certainty they needed to include Africa consistently in their global strategies.

The extension permits the emerging apparel sector in Africa’s poorest countries to keep using the lowest-cost inputs to access the US market while at the same time encouraging investment in expanded African textile production.

The extension also contains provisions to enhance technical assistance and private sector capacity building needed to help African countries take full advantage of AGOA.