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 In January 2022, representatives McCaul (R-TX) and Murphy (D-FL) put forward the Prosper Africa Act (H.R.6455) to codify the existing Prosper Africa initiative into law. This program strives to increase investment and trade cooperation among the United States and African nations. Since 2019, the initiative enabled almost 800 deals worth $50 billion. The codification of Prosper Africa will benefit the program by making its compliance legally binding and ensuring that it receives support over the next seven years....

Ambassador Katherine Tai and the Office of the United States Trade Representative today delivered President Biden’s 2022 Trade Policy Agenda and 2021 Annual Report to Congress. This report details USTR’s work to implement the Biden Administration’s trade priorities and advance a worker-centered trade policy. “President Biden believes that America is at its best when we are leading on the world stage to deliver economic prosperity and growth to our citizens and communities,” Ambassador Tai said. “The 2022 Trade Policy...

The Biden administration has given an indication of a possible resumption of trade talks between the US and Kenya. The two nations commenced negotiations for a free trade agreement (FTA) in July 2020, with a view of drafting a comprehensive agreement that would act as a model for similar pacts between the US and other African countries. But discussions around the agreement died down after Biden took over from his predecessor Donald Trump in January last year. The Biden administration has been conducting a forensic review of all agreements...

Agriculture, textiles and minerals could spur Kenya’s export output in the next decade, Standard Chartered Bank says. In a report titled Future of Trade 2030: Trends and Markets to Watch, the bank identifies major corridors and five trends shaping the future of global trade. Kenya is the only East African country in the top 13 countries that will experience major export growth in the next 10 years. The research also found that 10 percent of global companies currently are or plan to manufacture in Kenya within the next five to 10...

The US government is exploring ways to expand trade and investment opportunities in Africa, in a bid to scramble for the control of the continent’s raw materials with other world’s powerful nations such as China and Russia. The US Deputy Assistant Secretary of State Akunna Cook said the country has yet to deepen its presence in Africa, which has a population of about 1.3 billion people.  “We have been behind the curve for quite some time in terms of really taking advantage of the opportunities on the continent… the great...

US President Joe Biden’s administration and American firms are expected to announce new investments in Kenya across sectors such as energy, health and agri-business as top officials and business delegation land in Nairobi this week. A brief released ahead of the visit by the US government seen by Business Daily said US deputy assistant secretary of State Akunna Cook and Prosper Africa acting chief operating officer Leslie Marbury will travel to Kenya alongside Nigeria, South Africa, and Namibia on an economic diplomacy visit,...

The Nigerian Export Promotion Council (NEPC) has called on exporters to take advantage of the African Growth and Opportunity Act (AGOA) to stimulate the country’s economic growth. NEPC Executive Director and Chief Executive Director, Dr Ezra Yakusak, said this at a sensitisation workshop on eligibility criteria and documentation for AGOA organised by the Council in Owerri on Monday. The News Agency of Nigeria (NAN) reports that the AGOA is a legislation approved by the US congress on May 18, 2000 for a 15 year-tenure to assist the...

The U.S. government is engaging in robust talks with Kenya as part of its drive to expand equitable and inclusive U.S. trade investment on the African continent, Deputy U.S. Trade Representative Sarah Bianchi said on Tuesday. Bianchi told a trade conference that USTR would have more to say on Kenya in coming weeks, but gave no details. "We have been doing a lot of robust engagement with Kenya. We're exploring ways to deepen our trade and investment relationship there," she said. "We'll have more to say on Kenya in the coming weeks, but we...

US Secretary of State Anthony Blinken's visit to Kenya, Nigeria and Senegal in November 2021 was a rare event for an administration's first year, cautiously signalling the US's aim to reconnect with Africa and to recover confidence in the former's commitment to democracy. With various promising moves in the pipeline, such as the appointment of a programme head for the Prosper Africa initiative, there may be movement with the African development agenda, especially in terms of foreign direct investment (FDI). This is crucial, because as...

House Foreign Affairs Committee Lead Republican Michael McCaul (R-TX) and Congresswoman Stephanie Murphy (D-FL) introduced the Prosper Africa Act to codify interagency efforts and promote, facilitate and increase two-way trade and investment between the United States and Africa.  “Advancing two-way trade and investment between the U.S. and African partners must be a key foreign policy priority,” said Rep. McCaul. “The establishment of the Prosper Africa Initiative in 2019 was an important step, but much more is...

For Sammy Abdella, the new year has brought bad tidings: the prospect of a steep drop in sales of scarves, rugs, baskets and other textile goods produced by Sammy Handmade in Ethiopia. “The U.S. market is our main destination,” said Abdella, who estimates it accounts for nearly two-thirds of sales for his Addis Ababa-based home decor and fashion company. “So, losing that put us in a very, you know, bad situation.” The source of Abdella’s stress? Effective January 1, Ethiopia was one of three countries — including Guinea and...

Namibian ambassador to the USA Margaret Mensah-Williams recently conducted a familiarisation visit at Meatco, expressing her satisfaction at the manner the institution is operating and fulfilling its mandate.   Mensah-Williams, who was welcomed by Meatco CEO Mwilima Mushokabanji, was particularly impressed by the vast experience and knowledge Meatco has in producing high-quality beef products that are highly competitive in the advanced economy such as that of the United States of America.  “The niche we can find to grow the...

Today, House Ways and Means Committee Chairman Richard E. Neal (D-MA) sent a letter to U.S. International Trade Commission (Commission) Chairman Jason E. Kearns requesting that the Commission initiate a fact-finding investigation on the African Growth and Opportunity Act (AGOA), a trade program that fosters economic development in the countries of sub-Saharan Africa (SSA). Chairman Neal’s request reflects deep interest among members of the Committee on the U.S.-Africa trade and investment relationship and follows recent Committee...

A Kenyan company is setting up a $51.3 million (about Sh115 billion) factory in Zanzibar as it targets to get a pie of the world’s $920 billion textile market. The global textile industry was estimated at around $920 billion in 2018, and it was projected to reach approximately $1,230 billion by 2024, available global data show. With its $51.3 million factory at Chunguni area in Zanzibar, Basra Textiles Limited is specifically targeting export markets across East and Central Africa, its company chief executive officer, Mr Ahmed Othman,...

Trade is one highly significant part of Africa’s story. Its pre-colonial, colonial and post-colonial transitions are all marked by trade. But for many years, African trade has struggled with several challenges: poor infrastructure, high transaction costs, opportunism and unfriendly policies. So when President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries were given a competitive edge by providing unilateral duty-free exports for 6,500 products from Africa to the United States. But that...

Makers of lemon juice in South Africa may be slapped with anti-dumping duties by the US, if a petition against them succeeds next month. On 30 December, a US citrus juice maker, Ventura Coastal, filed a petition with the United States International Trade Commission, requesting that the US government impose anti-dumping duties on lemon juice from South Africa and Brazil. It alleges that lemon juice from South Africa and Brazil is sold at less than fair value in the US. Should the petition succeed and anti-dumping tariffs be imposed, South...

When he was running to win the White House, President Joe Biden’s campaign committed to implement a “bold strategy” toward Africa, and one that would be based on a “mutually respectful engagement” and a reinvigorated diplomacy, if elected. Indeed, the campaign was the first ever to outline how it would promote the interests of the African diaspora in the United States. On his 16th day in office, President Biden sent a video message to African leaders attending the 34th African Union Summit that promised...

The United States on Saturday cut Ethiopia, Mali and Guinea from access to a duty-free trade program, following through on President Joe Biden's threat to do so over accusations of human rights violations and recent coups. "The United States today terminated Ethiopia, Mali and Guinea from the AGOA trade preference program due to actions taken by each of their governments in violation of the AGOA Statute," the U.S. Trade Representative's office said in a statement. Biden said in November that Ethiopia would be cut off from the duty-free...

Despite a last-minute drive backed by diaspora members who fear that Washington may lose an ally, Ethiopia is likely to lose important commercial privileges in the United States on January 1 due to human rights concerns. President Joe Biden said on November 2 that Ethiopia, a longtime US ally and the continent’s second most populous country, will be removed from the African Growth and Opportunity Act in the New Year, citing “grave violations” in the year-long conflict with Tigrayan rebels. The Ethiopian government has fought hard...

U.S. President Joe Biden announced yesterday that he has “determined that Ethiopia, Guinea, and Mali do not meet” the AGOA requirements described in section 506A(a)(1) and has proceeded to “terminate the designation of the three countries as beneficiary sub-Saharan African countries …effective January 1, 2022.” On November 21, the Ethiopian Ministry of Foreign Affairs lamented the impending decision by the U.S. to remove Ethiopia from AGOA privileges and called it “misguided and fails to take into account the commitment of the...

Today, U.S. Senator Chris Van Hollen (D-Md.) and Congresswoman Karen Bass (D-Calif.) urged President Biden to reconsider his Administration’s November 2, 2021 decision to terminate Ethiopia’s designation as a beneficiary country under the African Growth and Opportunity Act (AGOA) at the end of this year. As the lawmakers note in their letter (download a copy at the link alongside), this decision will hurt the nation’s most vulnerable and reverse hard-won economic gains without reducing hostilities in the ongoing civil war. Senator Van...

Ethiopia’s duty-free export access to the U.S. has been revoked by President Joe Biden due to its failure to meet the requirements, according to the White House. The action comes after 13 months of civil war in the country. Ethiopia is disqualified from participation in the Africa Growth and Opportunity Act due to gross violations of human rights, the U.S. Trade Representative said when it notified Ethiopia in November. It said the ruling could be reversed if the Ethiopian government addressed those issues by Jan. 1,...

The US’ main corn lobby group has urged President Joe Biden’s administration and Congress to prioritise trade deals between the US and Kenya to avoid losing their industry’s advantage over China. The American Corn Refiners Association (CRA), said delays in agreeing on trade deals will see potential partners like Kenya moving on and rivals like China shaping trade practices across the globe. There has also been growing unease in Nairobi about the Biden administration’s delay in concluding the free trade agreement with...

Technical Systems (Pty) Ltd today received the “South Africa AGOA Exporter of the Year” Award for their excellence and innovation in reaching the United States market, through the African Growth and Opportunity Act (AGOA). Veldskoen Shoes (Pty) Ltd was the winner in the small enterprises category. Two Greens Lemons received the award for medium enterprises, while Technical Systems (Pty) Ltd also emerged as the winner in the large enterprises category. NOMU Brands (Pty) Ltd received the Top Woman Owned...

President Joe Biden’s top envoy signaled the U.S.’s intent to revitalize its long-neglected relations with Africa, where it has steadily been losing influence to China and other global powers. “Too many times, the countries of Africa have been treated as junior partners –- or worse –- rather than equal ones,” Secretary of State Antony Blinken said in a speech Friday in Abuja, Nigeria’s capital. “We want to make your partnerships with us even stronger.”  Africa has always been near the bottom of the U.S....

Speech by Anthony J. Blinken, Secretary of StateEconomic Community of West African States (ECOWAS)Abuja, NigeriaNovember 19, 2021 SECRETARY BLINKEN:  Good morning, everyone.  Thank you very much, Vice President Koroma.  Thank you for the very kind introduction, but thank you especially for your leadership here at ECOWAS – not just today, but every single day.  And it’s very good to be here at ECOWAS, which makes vital contributions across the region to economic integration, security, democracy, climate, health,...

Ethiopia’s once rapidly growing economy is taking another hit tied to its yearlong war, with global clothing manufacturer PVH Corp. saying it is closing its facility there because of the “speed and volatility of the escalating situation.” PVH, whose brands include Calvin Klein and Tommy Hilfiger, has been a marquee occupant of Ethiopia’s model industrial park in the city of Hawassa, where Africa’s second-most populous country has made clear its aspirations of rapid, Chinese-style development. PVH said it is closing its facility...

(As prepared for delivery) Date: Wednesday, November 17, 2021 - 11:00am Chairman Blumenauer opening statement: Today’s hearing is the next step in this Committee’s ongoing work on the U.S. – Africa trade and investment relationship.  We met with the President of Kenya as well as Kenya’s Ambassador to the United States to discuss trade matters.  And, recently, we led congressional engagement with African trade ministers during this year’s AGOA forum.   I would like to begin by noting that the Ways and...

Joint Statement on the Second Kenya-U.S. Bilateral Strategic Dialogue The Governments of the Republic of Kenya and the United States of America held the second session of the Kenya – United States Bilateral Strategic Dialogue in Nairobi on November 17, 2021.  Kenyan Cabinet Secretary for Foreign Affairs Ambassador Raychelle Omamo and U.S. Secretary of State Antony J. Blinken discussed strengthening the strategic partnership across all five pillars and advancing peace and prosperity in Africa and the western Indian Ocean region...

As day turns to night in Ethiopia, International crisis negotiators are feverishly working to avoid an all-out civil war. America’s top diplomat, Secretary of State Antony J. Blinken is in nearby Kenya trying to help resolve the crisis.  America utilized several pressure tactics to try to bring this outbreak to a resolution but none have worked so far. The latest is to give Ethiopia a 60-day notice of withdrawal from the African Growth and Opportunity Act (AGOA) - but, this proposed “AGOA-EXIT” strategy is meeting some resistance...

The African Growth and Opportunity Act (AGOA) has served as the cornerstone of the U.S.-Africa commercial relationship for more than two decades but it is set to expire on September 30, 2025. While the legislation’s unilateral trade preferences have provided economic benefits for countries across sub-Saharan Africa, AGOA as a whole remains underutilized. To ensure continuity in U.S-African trade ties, the United States must grapple with the legislation’s potential reauthorization now, with a particular focus on how the utilization of...

In response to human rights violations, the United States announced this week that it plans to suspend Ethiopia, Mali and Guinea from duty-free access to American markets as of January 1, 2022.U.S. President Joe Biden said in a statement to Congress, released Tuesday (see alongside), that these nations were no longer in compliance with the eligibility requirements for the African Growth and Opportunity Act (AGOA). He cited various examples of their failure to defend internationally recognized human rights.  What is the...

WASHINGTON – Ambassador Katherine Tai today released the following statement on the African Growth and Opportunity Act (AGOA):  “Today, President Biden announced three countries will be terminated from the AGOA trade preference program as of January 1, 2022, absent urgent action to meet statutory eligibility criteria. Our Administration is deeply concerned by the unconstitutional change in governments in both Guinea and Mali, and by the gross violations of internationally recognized human rights being perpetrated by the Government...

Ethiopia is to be suspended from the United States’ tariff-free African Growth and Opportunity Act (AGOA) in a sign of the continuing deterioration in relations between the countries amid Ethiopia’s ongoing war in Tigray. Ethiopia is one of three African countries – alongside coup-hit Guinea and Mali – which will lose access to the scheme, which provides tariff-free access to the US market for African manufacturers, from January 1st. AGOA brings Ethiopia about $100m in “hard cash” annually and directly generates employment...

Senate Foreign Relations Committee Ranking Member Jim Risch (R-Idaho) and House Foreign Affairs Committee Ranking Member Michael McCaul (R-Texas), issued a statement (see text below) expressing their “hope that the Ethiopian government can correct course and avert a revocation of AGOA benefits.” The statement came as the Biden Administration is expected to announce its decision on Ethiopia’s eligibility to continue to benefit from the African Growth and Opportunity Act (AGOA) as early as November. On August 25, US...

US footwear and clothing brands are urging the Prime Minister of Ethiopia, Abiy Ahmed, to resolve the ongoing humanitarian crisis in the country, warning the sourcing relationship between the two is under threat. Steve Lamar, president and CEO of the American Apparel and Footwear Association (AAFA), addressed his concerns on behalf of the industry about the humanitarian crisis in Tigray and nearby regions in a letter to Prime Minister Abiy Ahmed. In the letter dated yesterday (25 October), Lamar said the AAFA’s members invest, produce...

The United States is relying on its Development Finance Corporation (DFC) to deepen trading activities with Ghana to create more employment for the youth. The US created the DFC a few years ago to help mobilise foreign direct investments to help support projects in Africa and partner industries on the continent. “I think that is also an important programme and I absolutely agree that working together to build trade between our two nations to create more employment for you and for us, and to create benefits for both countries is...

On Monday, October 11, 2021, H.E. Uhuru Kenyatta, President of the Republic of Kenya witnessed the signing of the Corporate Council on Africa (CCA) and Kenya Private Sector Alliance (KEPSA) U.S.-Kenya SME Trade Initiative. The initiative recognizes the critical role that SMEs play in U.S. and Kenyan trade, and seeks to expand trade and investment between American and Kenyan Small and Medium Enterprises (SMEs) through partnership, information sharing, training, logistics, financing, and more. A key component of the Initiative is to...

United States Trade Representative Katherine Tai today chaired the opening session of the Virtual African Growth and Opportunity Act (AGOA) Ministerial.   The Ministerial’s theme is “Building Back a Better U.S.-Africa Trade and Investment Relationship” and is taking place virtually in lieu of the annual United States-Sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) due to the COVID-19 pandemic.  The Virtual AGOA Ministerial, which concludes tomorrow, is providing a valuable platform for strengthened...

This year's AGOA Forum will provide a dialogue between U.S. and African government and private sector stakeholders that will set the tone and path for enhancing the future U.S.-Africa trade and investment relationship beyond the current September 2025 expiration of AGOA. This session is a critical opportunity for governments and companies to think creatively about how best to use all available tools, including the market access provided under AGOA, to create a stronger U.S.-African trade and investment partnership that supports both African...

President Joe Biden will host Kenyan President Uhuru Kenyatta for a meeting in Washington on Thursday as the White House weighs sanctions against parties to the conflict in a northern region of the neighboring East African country of Ethiopia. The meeting at the White House will mark Biden's first as president with an African leader. White House spokesperson Jen Psaki said in a statement that the two would discuss "efforts to defend democracy and human rights, advance peace and security, accelerate economic growth, and tackle climate...

U.S. President Joe Biden recently threatened to impose sanctions on Ethiopia due to the conflict in Tigray. If Washington follows through and removes preferential trade arrangements under the African Growth and Opportunity Act (AGOA), Ethiopia’s fledgling manufacturing sector could face an existential threat. While many people around the world share the U.S. government’s concern about “the peace, security, and stability of Ethiopia and the greater Horn of Africa region,” Ethiopians are dismayed by the threat of withdrawal...

Ethiopia urged the U.S. to let it retain market access under the African Growth and Opportunity Act (AGOA) because disqualification will deprive many people of their livelihoods in the conflict-wracked country. A withdrawal of the preferential access would put as many as 85,000 direct jobs at risk and about 1 million across the entire value chain, Ethiopia’s Chief Trade Negotiator Mamo Meheretu said in an interview from the capital, Addis Ababa.   Mamo made the comments after the U.S. Trade Representative in August raised concerns...

Prime Minister Abiy Ahmed came out swinging on Thursday against US threats to remove Ethiopia from a key trade pact over the humanitarian crisis in Tigray. The prime minister’s office released a video urging the United States not to expel Ethiopia from the African Growth and Opportunity Act (AGOA), which grants eligible participants in Sub-Saharan Africa duty-free access to the US market for thousands of products. The video highlights a woman named Saron working in an Ethiopian garment factory using the Twitter hashtag #LetHerWork. It...

Sir: Growing Nigeria’s non-oil export is critical to the much-sought economic growth, employment and poverty reduction. Not least, in light of the reality of hydrocarbon resources losing its reliability and honoured position as a revenue source. Over the years, this realisation has spawned myriad of non-export campaigns, commentaries as well as other initiatives aimed at creating export opportunities for developing countries like Nigeria. It is my considered view, that the African Growth and Opportunity Act (AGOA) for instance, enacted...

Togo’s ‘PIA’, a textile focussed SEZ, aims to create an eco-system for textile value chains and offer multiple incentives to foreign investors investing in the Textile Park.  A West African nation ‘Togo’ recently established the Adétikopé Industrial Platform (PIA), a Special Economic Zone (SEZ) conceptualised by ARISE IIP, to unlock the growth potential and promote the industrialisation of Togo. Located along the strategic location of Lomé-Burkina industrial corridor, ‘PIA’ is the country’s first industrial...

The American Chamber of Commerce in Ethiopia (AmCham Ethiopia), has asked the US and Ethiopian governments and policymakers not to rush to revoke Ethiopia form the list of the privileged countries that has granted an access to export products to the United States (US) market under the African Growth and Opportunity Act (AGOA). AGOA trade program provides duty-free access for 38 Sub-Saharan African countries to export their product to the US on the conditions that they required to meet a certain eligibility criteria’s, such as eliminating...

The 19th AGOA Civil Society Organization (CSO)Network Session of the AGOA Forum will take place October 6-8, 2021, during AfrICANDO 2021 under the theme “US-Africa Trade and Economic Cooperation: The Way Forward.”  The AGOA CSO Network Session will be followed by the 19th AGOA Ministerial Forum October 20-21, 2021, in Washington, DC and virtually.  [See update and Zoom link further down] Recommendations from the AGOA CSO Network Session and the private sector to be presented to the Ministers of Trade from Sub-Saharan Africa...

US trade policy toward Africa is facing a conundrum. Much has changed in the two decades since the African Growth and Opportunity Act (AGOA) set the framework for trade between the world's largest economy and its poorest continent. Many observers advocate new policies to increase U.S.-Africa trade and investment, especially with Agoa expiring in 2025. Yet the policy path is less clear than when Agoa became law, and the prospects for a substantial African trade initiative gaining political support are more challenging. When Congress passed...

Today, the American Apparel & Footwear Association signed a memorandum of understanding in cooperation with the Kenya Association of Manufacturers (KAM). As the representatives of the apparel and footwear industry in both the United States and Kenya, the groups have agreed to collaborate on policy areas that are of mutual interest to its membership through joint advocacy and information sharing on industry best practices. The MOU was signed by AAFA President and CEO Steve Lamar and KAM Chief Executive Phyllis Wakiaga during a ceremony...