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AGOA: Hot air of hot stuff?

Author
Mathew Stern; Nnzeni Netshitomboni
Organisation
National Treasury, South Africa
Publication Date
13 February 2002
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The US Africa Growth and Opportunity Act (AGOA), which was promulgated in October 2000, claims to 'move Africans from poverty to prosperity by increasing their economic opportunities'. The Act extends Generalised System of Preferences (GSP) status for qualifying African countries to September 2008 and expands the existing list of 4 650 GSP products by 1 837. Thirty-four sub- saharan African countries, including South Africa, qualify for AGOA.

Much has been said about the large number of new export opportunities and jobs that will be created out of AGOA. However, a closer examination of the expanded product list suggests that some scepticism is warranted.

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