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The President of the Nigerian-American Chamber of Commerce (NACC), Mr Sam Ohuabunwa, says Nigeria has yet to enjoy the benefits of the African Growth and Opportunities Act (AGOA). Ohuabunwa made the statement at the 54th Annual General Meeting of NACC in Lagos on Wednesday. The News Agency of Nigeria (NAN) reports that the U.S. Government established AGOA in 2000 to provide duty and quota free markets for goods from sub-Saharan African countries imported into the U.S. He said that the incentives provided on the AGOA platform were not...

The Africa Leaders Summit, held in Washington in early August, marked a welcome and important turning point as trade and investment became a top priority in US-African relations. At the same time, this development has placed the US and the EU on a collision course as it concerns trade with Africa. From patronage to partnership The transition in US-Africa relations began with the passage of the African Growth and Opportunity Act (AGOA) in 2000. AGOA, which reduced US tariffs to zero on 6,400 products for 40 countries in Sub-Saharan Africa,...

Textile companies say they are indeed closing down unless government is willing to pay the duties levied by the United States on exports that do not benefit from the African Growth and Opportunity Act (AGOA). This week Texray in Matsapha said it had no choice but to retrench part of its workforce for the time being so as to diminish the company’s financial loss as a result of Swaziland’s removal from AGOA as of January 2015. Amalgamated Trade Unions of Swaziland (ATUSWA) Secretary General Wonder Mkhonza said the union met with the...

The Trade, Regional Integration and Employment minister, Abdou Jobe, has pointed out that the trade opportunities under the United States' crafted Africa Growth and Opportunity Act (AGOA) are enormous, but that the challenges remain on the ability of local businesses for full benefit from AGOA, market access conditions, means of access under the Act and so on. He was speaking Tuesday during the opening ceremony of a two-day sensitisation workshop, organised by the Gambia Investment and Export promotion Agency (GIEPA) in partnership with the...

In August this year, US President Obama made a commitment to support the continuation of the African Growth and Opportunity Act (Agoa), a legislation that provides duty-free market access to the United States for qualifying sub-Saharan African countries. Obama mentioned particularly South Africa, Nigeria and Angola, saying the US still does a lot of trade with these three countries. “We need more Africans, including women and small- medium-sized businesses, getting their goods to market,” he said, addressing delegates at the US-Africa...

The American Chamber of Commerce in SA has travelled to Washington DC twice in recent months to meet leaders of the US Senate and House of Representatives, asking them to lend support to the renewal of the African Growth and Opportunity Act (Agoa) for SA. AGOA allows more than 98% of South African exports to enter the US duty-free, the chamber says. It was approved by the US Congress in May 2000, to assist the economies of sub-Saharan Africa and to improve economic relations between the US and the region. Initially, the legislation was to...

The Tex Ray Swaziland Group has come out to state that even though it needs to adjust on production it will not be closing shop as reported. In a statement, the company’s Managing Director Ricky Tai said the company was forced to retrench part of its workforce for the time being in order to prevent the company from getting into financial losses. He said the looming removal of the country from the list of beneficiaries of the African Growth and Opportunity Act (AGOA) from January 2015 has impacted deeply on the company’s...

The Tex Ray factory is set to retrench all its 1 450 workers by November 5, 2014 and close down following the country’s loss of AGOA. This is contained in a letter of notice that was written by the factory Manager Lisa Chang to the Swaziland Manufacturing and Allied Workers Union (SMAWU) and Labour Commissioner Khabonina Dlamini. The letter, which is dated October 8, 2014 and titled; ‘Re: Notice of intention to retrench in terms of Section 40 of the Employment Act 1980, read together with clause 11.6 of the recognition and procedural...

Trade Minister Abdou Jobe has said the trade opportunities presented to local businesses and entrepreneurs in The Gambia by the Africa Growth and Opportunity Act (AGOA) are strongly complementing The Gambia's export drive and competiveness in the international market. Minister Jobe made this remark at the SunSwing Beach Resort in Kololi, where a two-day AGOA Awareness-raising workshop commenced yesterday. The occasion, which brought together business executives and private sector stakeholders in The Gambia, was organised by the Minister of...

The newly established Botswana Textile and Clothing Association (BTCA) aims to eliminate the existing competition in the textile and clothing industry, especially those from Asian companies. According to BTCA president, Mohammad Shahid Ghafoor, the association aims to help local textile and clothing manufacturing companies sustain themselves in a highly competitive market. Ghafoor noted that Asian countries have a competitive advantage in terms of lower labour costs supported by efficient production, availability of vast and cheaper...

US firms in SA support the renewal of the African Growth and Opportunity Act (Agoa) for SA, the American Chamber of Commerce (AmCham) in SA said on Wednesday. Delegates from the representative body of American businesses in SA recently visited Washington DC and met leaders in both houses of the US Congress to lend their support for the renewal of the act, which expires in September next year. AmCham said the delegation shared initiatives that it was discussing with the South African government. These revolved around "improving the business...

The conduct of labour relations in SA comes across as worryingly anachronistic, the US ambassador said on Tuesday, referring to a pattern of long strikes in mining and other industries. "SA sometimes seems to be 40 years behind the times when it comes to labour relations," Patrick Gaspard told a forum in Sandton on US-Africa trade and investment. Mr Gaspard is a confidant of US President Barack Obama and has not been shy about speaking his mind on political and labour issues since arriving in Pretoria late last year. On Tuesday he focused...

Addressing a Nedbank-NEPAD Networking Forum in Johannesburg, Gaspard said Africa has long been important to the US policy with the two regions now working through Power Africa and Feeding the Future initiatives. The US envoy to South Africa added that the relationship between Africa and his country was moving from donor recipient to equal trade partnership. Gaspard added that reframing relationships was vital in global economic growth. “US through its PEPFAR programme has invested over 4.2 billion US dollars in the last decade reducing...

The global denim business faces considerable pressures these days. The global recession of a few years ago has left a lasting impact on consumer spending. Expensive is out; cheap is in. Credit-fueled spending has given way to tight budgets as consumers continue to pay off their debts from the years leading up to the recession. As a result, sales of jeans in the United States, for example, have declined over the past several years, while the popularity of low-cost knitted athletic wear has gained considerable market share. There was once a...

More emphasis needs to be placed on trade partnerships among African countries to drive seamless intra-Africa trade, an economic survey has shown. While international trade agreements such as African Growth and Opportunity Act (AGOA) and the recently announced Economic Partnership Agreement between the European Union and Southern Africa are positive for the continent and should be encouraged, Africa is still the world’s least connected continent when considering the ease of moving people, trade, information and finance, according to the...

To help secure the renewal of the Africa Growth and Opportunity Act (Agoa), South African poultry producers are considering granting concessions on the access of US chickens into the local market. US poultry producers have threatened to block the renewal of the act in the US Congress if South Africa refuses to allow some of their products to enter the domestic market. Anti-dumping duties will remain in place on the import of US bone-in chicken portions, but there was scope to allow a specified quantity of chicken leg quarters to enter the...

  When President Obama announced his intention to convene the first-ever U.S.-Africa Leaders Summit, policymakers, pundits, and other interested parties made numerous predictions as to how the historic event would fare, especially in comparison with the summits convened by China, the European Union, and others.  Now that the activity of what came to be known as “Africa week” has settled down, it is time to take stock of what was achieved and what comes next.   So What Was Achieved at the U.S.-Africa Leaders Summit? One...

Textile and clothing businesses from diamond-rich southern Africa country Botswana have formed a new industry group to boost the sector's efforts to fully utilise dutyfree incentives under the US's African Growth and Opportunity Act (AGOA). The new Botswana Textile and Clothing Association (BTCA) anticipates AGOA will be renewed by the US congress before it expires in 2015. BTCA founding president Shahid Ghafoor said the association, which was officially launched last month, is ready to help members with solutions to day-to-day...

Logistics major DHL Express has reported an increase in profits from Africa due to the African Growth and Opportunity Act (AGOA). Implemented in 2000, the AGOA provides exporters in Africa duty-free access to US markets. DHL Express, in particular, has reported a significant increase in their trade volumes in sub-Saharan Africa. Charles Brewer, managing director of DHL Express Sub-Saharan Africa, said, “Trade lanes in Africa have increased significantly as a result of relieved trade barriers, which have had a positive impact on many...

In 2000 the Clinton administration came up with an initiative designed to bolster trade and investment between the US and Africa, one of the world's fastest growing regions. It offered select sub-Saharan countries the opportunity to trade with the US, the world's largest market, duty-free under the Africa Growth and Opportunity Act (AGOA). And yet African business has undercapitalised on this golden opportunity. Experts agreed at a roundtable discussion, organised jointly by the University of Cape Town's Graduate School of Business (UCT...

African leaders and Heads of State recently visited Washington, D.C. to re-affirm that the United States is focused on  doing business with Africa. However, in spite of the seemingly productive meetings, unless the African Growth and Opportunity Act (AGOA) is renewed by this Congress in the next few months, it’s safe to say, that our trade effort will be a lame duck. Long-term investments in plant, property, and equipment that are subject to time constraints are effective suicide missions. AGOA expires in 2015, and an immediate...

Trade deals are based on the concept of give and take – a reality that protectionists try to ignore. No countries play fair when it comes to trade, pleading the need to protect the interests of their own industries. The interests of their own consumers are usually not on the agenda, perhaps because consumers are less organised and therefore less powerful than big business lobbies. However, earlier this month, South Africa’s trade officials, lobbying for the extension of a favourable trade arrangement with the US, accepted there could be...

China may be the apparel factory to the world, but one day Africa could be right up there with the powerhouse manufacturer. Big companies such as VF Corp. and PVH Corp. are eyeing the massive continent as a future site for apparel production that can come back to the United States duty and quota free. “Africa is prime and ready to go,” said Bill McRaith, chief supply-chain officer for PVH Corp., formerly known as Phillips-Van Heusen, whose labels include Tommy Hilfiger and Calvin Klein. The company is making a 20-year commitment to the...

  During the United States - Africa Summit, hosted by President Barack Obama earlier this month, the renewal of the African Growth and Opportunity Act (AGOA) frequently came up in discussions. AGOA expires in September 2015. Basically, AGOA gives selected sub-Saharan African countries duty-free and tariff-free status to export a wide range of goods to the US market.   This preferential treatment has been around for almost a decade and half.  Results have been mixed. Some countries have reported substantial gains, while...

  The trade relationship between the United States and Africa, as well as the African Growth and Opportunity Act (AGOA) – which provides exporters duty-free access to the lucrative US market, was recently put under the microscope at the 2014 US – Sub Saharan Africa Trade and Economic Cooperation Forum (known as the AGOA Forum), which coincided with President Barack Obama’s US-Africa Leaders Summit, both held recently in Washington. Charles Brewer, Managing Director of DHL Express Sub Saharan Africa, says that the company has...

  Rwanda is set to benefit from the next opportunity presented by the US market through the African Growth and Opportunity Act (Agoa). AGOA's current mandate expires on September 30, 2015. However, African leaders secured a commitment for its renewal at the recent US-Africa Leaders Summit hosted by President Barack Obama in Washington, DC. In separate interviews with The New Times, members of the private sector and government officials said extending Agoa's mandate for another 15 years would benefit the continent. When President...

A three-day US-Africa Leaders Summit, the first such event of its kind, was held earlier this month in Washington DC. According to the White House, the summit held from Aug. 4-6 focused on topics, such as advancing the administration's focus on trade and investment in Africa, highlighting the US's commitment to Africa's security and good governance. During the summit, President Obama also announced US$33 billion in financial commitments aimed at improving US-Africa economic and trade ties. The summit, that brought together 50 heads of...

Six US and African based textile and apparel trade bodies, including the United States Fashion Industry Association (USFIA), called for renewal of the African Growth & Opportunity Act (AGOA), expiring on September 30, 2015. They requested for a long-term renewal, at least for a period of 15 years, which includes extending the third-country fabric provision to all AGOA-signatory countries. AGOA is a US-Africa trade deal in effect since 2001 and grants duty free access to the US market for qualifying African States, without requiring any...

Following the conclusion of the US-Africa Summit in Washington DC last week, it is opportune to reflect on some of the outcomes for SA and Africa. On the eve of the summit, ministers of trade from those African countries that are eligible for the trade preferences under the African Growth and Opportunity Act (Agoa) called upon the US to seamlessly and timeously extend Agoa for at least 15 years, without conditions. This message was reiterated in the Agoa Ministerial Forum, where the African trade ministers had an opportunity to engage with...

Growth and Opportunity in Africa Forum in coordination with the U.S.-Africa Leaders Summit Tuesday, August 5, 2014  [Please note - this event has concluded]   9:00 AM - 12:30 PM Cannon Caucus Room (345 Cannon House Office Building) U.S. House of Representatives Washington, DC 20515 Panel One 9:00 – 10:30 am Moderator: Dr. Monde Muyangwa Africa Program Director, Woodrow Wilson Center   H.E. Erastus Mwencha Deputy Chair, African Union Commission   H.E. Sindiso Ngwenya Secretary General Common Market for Eastern and...

America's market is saturated, Europe can’t get moving and China needs resources. It is no surprise, then, that Africa has held a clutch of economic summits with China, Europe and most recently the US.  The crucial determinant of outcomes for Africa will depend on bargaining power. Sim Tshabalala, the joint CEO of Standard Bank, who attended the US Africa Leaders Summit this week, said South Africa Inc had declared itself open for business and trade, and had the nous to lock down beneficial trade terms with the world’s largest...

A factory in Maseru, the capital of Lesotho, is buzzing with activity. On one side, men load box after box of ladies' hooded sweatshirts destined for the US. Elsewhere, hundreds of workers cut and sew cloth, iron the finished products and put them on hangers. Even the price tag and Walmart logo are included. When the clothing got to the US, shops just had to hang them up and start to sell them, said David Cheng, managing director of TZICC Clothing Manufactures, which runs the factory. The scene is common at clothing plants across Lesotho,...

When President Bill Clinton signed the African Growth Opportunities Act (AGOA) into law 14 years ago, he offered incentives for African countries to open their economies and build free markets, to move the continent from an aid dependency to a viable trading partner. That is why at their summit hosted by US President Barack Obama in Washington, 50 African heads of states, including our own President Jacob Zuma, smilingly reminisced about how AGOA has led directly and indirectly to the creation of millions of jobs, thus significantly...

  If the United States does not take more interest in Africa it is going to lose out, African Union commission chair Nkosazana Dlamini-Zuma said on Thursday. “It's in their advantage to know what's happening in Africa because if they don't come to the party eventually the party will happen without them,” she said in Washington. “Business people really know about Africa from the media and American media is not really kind on Africa. They tend to report what bleeds and leads.” The AU commission chair made reference to the...