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South Africa: Turning waste into wealth
Trillions of tons of gas, a by-product of the US shale oil industry, is burnt because low prices make harnessing it for commercial use uneconomical. Sikonathi Mantshantsha examines how Sasol will use its propriety technology to create value out of the gas and, in the process, double its revenue. A US oil boom brought about by hydraulic fracturing is releasing vast quantities of unwanted shale gas into the atmosphere. Trillions of tons of gas are burnt because prices are low and technology to convert it into useful fuel is scarce. So much of...
US unwisely ignores sub-Saharan Africa - Former US Ambassador John Price
African leaders are skeptical about President Obama's engagement of sub-Saharan Africa, in part, because he has been there only once since becoming president, visiting Ghana in 2009 for less than 24 hours. What's more, when Mali's government called out for help to subdue Islamist extremists who had overrun the northern part of the country, the Obama administration demurred. Mistrust and resentment exist in sub-Saharan Africa, and present a challenge for the administration as Mr. Obama plans to visit Senegal, South Africa and Tanzania from...
Requests for funds to dominate Obama’s visit to Africa
US President Barack Obama's visit to Africa will be dominated by discussions on additional funding being sought from the Millennium Challenge Account (MCA) by Senegal and Tanzania, which he will visit next month along with South Africa. Mr Obama will be in Africa from June 26 to July 3, his longest official visit to Africa. Tanzania has exhausted the $698.1m it received in the first round of MCA loans and will seek to qualify for a second round of funding, an official said on the sidelines of the African Union summit in Ethiopia on Sunday....
Gambia: Trade ministry, US embassy poised to improve bilateral trade, investment
The US Embassy Wednesday organised a seminar on Franchise at the Sunswing Hotel in Kololi. The seminar was designed to educate interested Gambian private sector operators on the procedures for acquiring a US Franchise and the rules and regulations of operating such a business. Speaking at the occasion, the US ambassador, Edward Alford, said that his embassy and the Gambia Ministry of Trade have a common desire to increase US-Gambia bilateral trade and investment. He told the gathering that in the US, the private sector has over the past few...
Labour laws keep South Africa's textile industry struggling along
It's not luxurious, but Goldfinch Garments, the Chinese-owned South African factory where Sindisizwe Zwane works nine hours a day, is far from the idea of a sweatshop: the ventilation is decent, the lighting is good and basic safety measures are in place. South Africa says its garment industry is better regulated and workers are better paid than in ultra low-cost producers in Asia, such as Bangladesh, where the collapse of a factory killed more than 1 100 people last month. The ANC-led government, with close links to labour unions, wants...
East Africa: Kenya pips Tanzania in AGOA Trade
Tanzania's performance in regards to exporting goods under the African Growth and Opportunity Act (AGOA) has not been satisfactory as compared to countries like Kenya, the government announced last week. However in recent years, the trend has improved. AGOA was introduced by the United States government in 2000 to encourage sub-Saharan countries export products to the American market on a duty/quota free basis. Total trade between Tanzania and the US has grown from $143.8 million in 2006 to $346.7 million in 2012 which is more than...
Ethiopia preparing for the 12th AGOA Forum
The 2013 African Growth and Opportunity Act (AGOA) Forum which will be held in Ethiopia will be instrumental in strengthening ties between Sub-Saharan African countries, Ethiopian Ministry of Trade (MoT) said. Ethiopia is preparing to host the 12th AGOA forum which will be held in June 2013. A delegation from US has recently visited Ethiopia to assess the preparation. “The forum will help sub Saharan African countries to link up in investment,” Amakele Yimam, Director of Corporate Communication Directorate at Ministry of Trade, told...
Kenya: Origin Africa takes center stage in New York
On April 22, the East Africa (EA) Trade Hub took its innovative Origin Africa campaign to New York. The EA Trade Hub's message: Africa is the New Frontier for Business. Held in the famed Paramount Theatre at the Hard Rock Café in Times Square, the event brought together African designers, manufacturers, exporters and U.S.-based buyers and retailers for a panel discussion on how to increase commercial engagement with Africa. From the emerging designer/entrepreneur to the large capacity exporter to the niche brand in the U.S., Africa...
Weaving Success - SA textile industry has great job potential
South Africa's Clothing, Textiles, Leather and Footwear sectors have potential to create much needed employment and boost competitiveness, the Department of Trade and Industry (DTI) said recently. DTI Director-General Lionel October said the Clothing and Textiles Competitiveness Programme (CTCP) introduced by Pretoria last year has breathed a new life into the sectors where new decent jobs are being created. “Local retailers are increasing procurement from local manufacturers and there is confidence starting to be shown by the new...
Lesotho: Growth in textiles and clothing plays central role in jobs creation
The Lesotho Precious Garments factory is bustling with industry as hundreds of machinists, mostly women, bend over sewing machines and turn brightly coloured fabrics into shirts destined for the US market. Outside the gates, dozens of people sit in the morning sun, hoping that they too might find work in the textile plant on an industrial estate in the heart of Maseru. “They are here every day, many spend the night – they are desperate for jobs and stay outside for days hoping to be hired,” says Nkopane Monyane, regional manager at...
Source Africa showcases Africa’s best textiles and apparel
The Source Africa 2013 trade show, supported by the USAID Southern Africa Trade Hub, took place at the Cape Town International Convention Center from April 9-12, 2013. Source Africa was a showcase for the best textiles and apparel that Africa has to offer, giving the world a first-hand look at the quality, reliability and sophistication of African suppliers and service providers. The centerpiece of Source Africa was a trade expo and matchmaking program featuring more than 125 world-class garment and textile suppliers displaying an extensive...
South Africa: Clothing, textiles can contribute to job creation
The Clothing and Textiles Competitiveness Programme (CTCP) has breathed life into sectors where new decent jobs are being created, thereby stopping the decline in these sectors, says Department of Trade and Industry (dti) Director General Lionel October. Speaking at the official opening of a four-day Source Africa 2013 event, which is being held in Cape Town, October said that South Africa has been able to stop the decline of the clothing, textiles, leather and footwear sectors by implementing strategies which made the sectors globally...
West Africa: US and West African countries work towards trade deal
The United States is working with West African countries to reach a trade and investment agreement that supports efforts at economic growth and integration as American companies increasingly look toward Africa for business opportunities. U.S. Trade Representative Demetrios Marantis told AllAfrica that discussions on the Trade and Investment Framework Agreement (TIFA) with the Economic Community of West African States (Ecowas) took place last week during a visit to Washington of four African leaders, including three from West...
Transforming the US-Africa commercial relationship
The U.S. can't afford to ignore investment and trade with Africa now that countries like China and India are increasingly investing in African countries. Witney Schneidman argues that the U.S. must extend the African Growth and Opportunity Act beyond its 2015 expiration and proposes some new initiatives to help American firms do more business across Africa. This chapter is part of 'Top Five Reasons Why Africa Should Be a Priority for the United States'. Read the full report here and tell us why you think Africa matters to the U.S. (Download...
Malawi, US seek to boost bilateral trade, investment
Acting U.S. Trade Representative (USTR) Demetrios Marantis met March 29 with Malawi President Joyce Banda in Washington for discussions of how both governments can stimulate two-way trade and investment, strengthen Malawi's business environment and contribute to regional growth. In 2012, two-way U.S.-Malawi trade was $129.9 million — a 7 percent increase from 2011. U.S. exports to Malawi mainly consisted of wheat, pharmaceuticals and machinery, while U.S. imports from Malawi consisted of tobacco, apparel, tea, macadamia nuts and sugar,...
Dem. Rep. Bass: US needs to strengthen trade ties with Africa
Chinese President Xi Jinping begins an African tour this week where he will seek to bolster economic ties between China and the continent. In visiting so soon after taking the reins of power, Xi is sending a strong signal about the importance of maintaining a strategic relationship with Africa. No doubt the Chinese president sought to tamp down concerns that China may be exploiting the continent’s vast resources to drive economic growth back home without making real investments that can improve African lives as well. His visit sends...
Botswana: Textile exports plunge 67 percent
The value of Botswana's textile exports fell by two thirds to P609.6 million last year, as market access and operational constraints deepened in the ailing sector. Bank of Botswana figures released recently indicate that in 2012, textile exports averaged P152.4 million per quarter, swinging from a high of P330.4 million between January and March to a low of P79.3 million in the second quarter. By comparison, 2011 textile exports powered home at P1.8 billion, averaging P454.4 million per quarter and ranging between P556.3 million to P335.3...
US trade stalemate pregnant with possibility
South Africa faces an international trade dilemma that may determine its international geopolitical placing and its economic growth modalities for decades. In 2015, the US's African Growth and Opportunity Act (Agoa) will expire. Agoa enables most South African-manufactured products to be imported in US markets without duties or quota limitations. Agoa has supported the expansion and survival of our textile and automotive industries, among others. Its lapsing will have disastrous effects on our industry. When she visited South Africa,...
TIFA will help ease trade in West Africa
The Trade and Investment Framework Agreement (TIFA) that is being considered by the US Government with the Economic Community of West African States (ECOWAS) will help goods move more easily and faster within the sub-region, Sam Ntum, a Senior International Trade Specialist of the Illinois Department of Commerce and Economic Opportunity, has told the B&FT. Announced on March 29 by the acting United States Trade Representative (USTR), Demetrios Marantis, during a visit to Washington of President Ernest Bai Koroma of Sierra Leone,...
US Senator urges early renewal of Africa trade bill
A senator on Thursday called for early renewal of trade benefits for Africa as part of a broader strategy to counter growing Chinese investment and influence on the continent of nearly one billion people. "America is losing ground and ceding economic opportunities in Africa to competitors," Senator Chris Coons, chairman of the Senate Foreign Relations Subcommittee on African Affairs, said in a report from his office. "China, which has made dramatic inroads across the continent in recent years, may undermine or even counter value-driven...
US engagement with the rising continent: Embracing Africa’s economic potential
Over the past 15 years, the African political and economic landscape has changed a great deal. In 2000, The Economist referred to the continent as "Hopeless Africa", and in 2011 the same magazine referred to the same place as "rising Africa". In this week’s issue, The Economist includes a special report in which it refers to Africa as the “Hopeful Continent” and uses terms such as emerging and aspiring to describe Africa. Recently, other analysts have referred to the new Africa in similar terms. But as Africa has changed, United...
Tanzanian Cotton Board seeks revival of textile industries
In order to fully capitalize from domestically produced cotton, the Tanzanian Cotton Board (TCB) has sought revival of textile industries in the country. TCB Director General Gabriel Mwalo said presently Tanzania exports around 70 percent of the domestically produced cotton to other countries in raw form, and revival of the textile factories would facilitate value addition. Mr. Mwalo was presenting a paper at a meeting of cotton stakeholders organized by the International Business and Trade Tanzania Initiative (IBUTTI). The meeting was...
US-Africa trade up more than 500% since 2001 but many African countries losing out
Africa's trade with the United States grew by more than 500 per cent between 2001 and 2011, but many African countries missed out on that five-fold growth, a leading Washington expert told African Development Bank (AfDB) staff recently. Sherman E. Katz, a senior advisor at the Centre for the Study of Presidency and Congress in Washington DC, gave a talk entitled “US Trade Policy under the New Administration: What Does it Mean for Africa?” at a Bank Staff Seminar in Tunis, organized by the AfDB’s African Development Institute in...
US business community still upbeat about South Africa, Africa
Sentiment within the US business community was very bullish about South Africa and the African continent, it was reported on Thursday. This is despite of worries about skills, competitiveness and regulatory environment in South Africa, according to I-Net Bridge. The website cited US Senator Christopher Coons (Delaware), who was speaking at the launch of the US-SA Business Council. I-Net Bridge quoted Coons as saying: “The challenges raised by US businesses were not insurmountable and that they could be addressed.” The US-SA Business...
US trade policy can’t fix waning demand
Exports from sub-Saharan Africa to the US, which had begun to pick up after plunging in the wake of Wall Street's 2008 implosion, dipped again last year - this time by 34% - and do not look as if they will recover soon. This is not something US trade policy, in the form of the African Growth and Opportunity Act’s (Agoa’s) preferential tariff treatment for most African products, can do much about in the immediate term, even if the act is made more generous when it comes up for renewal in 2015. It’s a problem of waning demand. Oil is...
Zambia: AGOA not fully exploited
Zambia's government is saddened that Zambia has not exploited the United States of America market under the African Growth Opportunity (AGOA) treaty due to failure to comply with the standards in that market. Commerce, Trade and Industry Permanent Secretary Stephen Mwansa said the Zambia Bureau of Standards (ZABS) and Zambia Weights and Measures (ZW&M) should assist in enhancing quality and standards for the country to benefit from the AGOA treaty. Mr Mwansa said lack of proper support infrastructure has limited the production of...
Reviving Nigeria's ailing textile industry
Nigeria's cotton and textile industry was in the 80's a key player in the national economy particularly in the provision of livelihood for about 20 percent of the population with 600,000 work force operating close to 170 textile mills across the country. The industry then generated an annual turnover of $8.95 billion; an average of 25% of the sector's gross domestic product (GDP) which accounted for not less than 10% of corporate income taxes. Figures obtained from the Manufacturers Association of Nigeria (MAN) shows that 1.3 million...
Botswana: Textile sector eyes P500 million bailout
The ailing textile sector is keeping its fingers crossed as the trade ministry prepares a strategy that will accompany the re-tabling of a bailout request to Cabinet for P500 million over five years. Last year, Cabinet coolly received the initial tabling by the ministry, questioning where the funds would be sourced from in a time of fiscal consolidation and asking for further justification of the request. The new bailout request follows a P38 million rescue package government pumped into the sector between 2009 and 2011, which ultimately...
Uganda: AGOA SMEs ask for tax reduction
Businesses operating in northern Uganda have asked the Government to consider granting tax incentives on local products so as to boost the African Growth and Opportunity Act (AGOA). AGOA is an initiative that allows products from Sub-Saharan African countries into the US market, duty and quota free. The business people, mainly small and medium scale entrepreneurs (SMEs) expressed their concerns during a meeting with Suzan Muhwezi, the senior presidential advisor on AGOA. Jared White, one of the entrepreneurs making crafts for export, said...
Mercedes-Benz optimistic about South Africa
The C-Class is an icon in the South African luxury vehicle market. It has been two decades since the first C-Class was manufactured locally and next year Mercedes-Benz South Africa (MBSA) will start production on the latest C-Class model, the W205. Last year MBSA manufactured more than 60 000 units of the W204 C-Class – of which three out of every four units was exported to the United States – under the existing African Growth and Opportunity Act (Agoa). Agoa was extended from end of 2008 until 2015, but long-term concerns about South...
AGOA initiative expands to northern Uganda
The African Growth and Opportunity Act initiative is trickling down to the grassroots with a number of companies producing products for the US market. In the once war-ravaged northern Uganda, several companies are setting up businesses in the region where they produce bags, hats, necklaces and bangles for the lucrative US market. Agoa offers a huge market for African products duty free and quota free into the US market. Gulu District vice chairman, Mr Jara Mapenduzi, said the enterprises involved in the trade have socially and financially...
Unleashing the US investor in Africa: A critique of US policy toward the continent
At a May 2011 conference on the African Growth and Opportunity Act (AGOA) held at the Center for Strategic and International Studies (CSIS), Assistant Secretary of State Johnnie Carson spoke about ways to increase trade between the U.S. and Africa. His take on AGOA was characteristically interesting and thoughtful. One point he made, however, exposed a fundamental problem with U.S. government thinking about African development. Ambassador Carson stated that it was important to raise the incentives under AGOA (and only under AGOA) for overly...
Sierra Leone: Four products certified for US export
The Africa Growth and Opportunities Act (AGOA) has certified four made in Sierra Leone products to be sold in the United States of America and Europe after meeting the required standards. According to the Chairperson of the Sierra Leone National Committee for the Africa Growth and Opportunities Act (AGOA) of the Sierra Leone Chamber of Commerce Industry and Agriculture Ms AyodeleWak Williams, the four products to be sold in the United States and Europe have been tested by the Sierra Leone Standards Bureau and other certifying agencies...
South Africa: Car exporters reassured on Agoa
Tariff-free car exports from South Africa to the US were likely to continue unimpeded under the African Growth and Opportunity Act (Agoa), according to an official from the office of the US trade representative. Due to the volume of cars and components exported from South Africa to the US, South Africa’s continuation within Agoa is vital to certain elements in the local industry. Agoa permits tariff-free access from eligible African countries into the US market for a large number of products. There are constant concerns that South...
Walmart adopts zero tolerance policy for global sourcing
Global retail giant Walmart Stores Inc has adopted a zero tolerance policy towards suppliers and it would soon end contracts with the suppliers who are subcontracting work to factories without any intimation to the retailer. The new policy, which would become effective from March 1, 2013, was devised after Walmart clothing was traced at a garment factory in Bangladesh, where 112 workers lost their lives in a fire in November last year. Walmart has informed its suppliers about the new stringent policy through a 10-page note. Vice President...
US proposes (flexibility in) sourcing of 'scarce' textiles outside TPP-bloc
The United States Government has put forward a proposal that allows procurement of scarce yarn, textiles and apparels from countries that are not signatories to the planned Trans-Pacific Partnership (TPP) trade agreement. Addressing the 24th annual Textile and Apparel Importer Trade and Transportation Conference organized by the United States Association of Importers of Textiles and Apparel (USA-ITA) in New York, US Department of Commerce’s deputy assistant secretary for textiles and apparels, Kim Glas, said the US Government has...
Hagel, Kerry, and Brennan Senate confirmation hearings: US policy on Sub-Saharan Africa
Following President Obama's inauguration, the Senate will hold confirmation hearings for three key Administration positions: Senator John Kerry (D-MA) for Secretary of State, former Senator Chuck Hagel (R-NE) for Secretary of Defense, and White House chief counterterrorism advisor John Brennan for director of the CIA. These nominees have strongly supported President Obama's foreign and defense policy, suggesting little policy deviation from President Obama's first term. Confirmations hearings provide an important opportunity for Senators...
Behind the times: Washington's slow changing attitude to Africa
Africa's international relationships are increasingly hinged on trade and investment rather than strategic security and aid, but attitudes in Washington are slow to change. While many Africans were celebrating President Barack Obama's re-election victory, arguably a more important leadership shift was taking place across the Indian Ocean. Xi Jinping, chosen by the Beijing elite to lead China for the next decade, may not be a household name outside of his home country, but he will be presiding over what may be Africa’s single most...
Where next? US-Africa relations under a second term
While Barack Obama's re-election has been met with enthusiasm across Africa, many are frustrated about a lack of delivery on past promises. If there was one place outside Barack Obama's hometown of Chicago more excited by his November re-election, it was Kogelo. Since Mr Obama's first election, this small market town in western Kenya - the birthplace of the US president’s father - has seen a paved road, electricity, several water wells, and two hotels built. As residents celebrated his victory with Swahili gospel songs, many hoped their...
Ghana: Pan-African Business Forum calls on Obama to strengthen MCA
The Pan-African Business Forum (PABF) has called on President Barak Obama to strengthen the Millennium Challenge Account (MCA) which was initiated by George Bush administration. The call was made at a press conference held in Accra over the weekend by the PABF. Speaking to this reporter, the President of the Forum, Prince Prosper Agbesi lauded the contribution of the African Growth and Opportunity Act (AGOA) and the Millennium Challenge Account to the economic growth of Africa. He however noted that, “when we do our own analysis in terms...
Madagascar's exclusion from AGOA to continue for now
The United States will not restore trade privileges to Madagascar this year, according to a statement received Saturday that cited human rights concerns and the failure to restore democracy in the Indian Ocean nation. Madagascar has been excluded from the Africa Growth and Opportunity Act (AGOA) programme since 2009 when then president Marc Ravalomanana was overthrown in a coup that left Andry Rajoelina in charge of a transitional, non-elected government. "We continue to be alarmed by the current regime's lack of respect for some of the...
The future of AGOA and US-Africa trade
At a time when the US was struggling to stay on its two feet in the heat of a looming economic meltdown in 2008, were hopes of better trade deals with Africa unrealistic when President Barack Obama was elected into office? Despite the domestic problems in which Obama's administration was embroiled, the criticisms and questions came from many African quarters: Why did Obama wait for nine months after he'd been sworn in before naming his Ambassador to the African Union? Why is China doing better on the continent in terms of trade? With its...
Ethiopia: Preparation underway to successfully host 2013 AGOA forum
Preparation is well underway to successfully host the 2013 African Growth and Opportunity Act (AGOA) forum, according to the Ministry of Trade (MoT). Ministry Corporate Communication Directorate Director, Amakele Yimam, told WIC today committees that will coordinate the preparation process were created at all levels. He said efforts are also underway to draw experiences from two of the six African countries that had got the chance to host the forum, namely from Kenya and Zambia. “The forum will be a good opportunity for Ethiopia to...
Obama withdraws AGOA preferences from Mali and Guinea-Bissau, confirms addition of South Sudan
US President Barack Obama on Thursday stripped Mali and Guinea-Bissau of their US trade privileges, citing backtracking from democracy in the two countries. In an annual assessment of benefits conferred by the Africa Growth and Opportunity Act (AGOA) programme, Obama added the fledgling nation of South Sudan to the list of African nations enjoying preferential trade treatment. Both Mali and Guinea-Bissau were hit by coups in the last year. US officials said Guinea-Bissau suffers from systemic corruption, and is an epicentre for drugs and...
Text of presidential proclamation regarding Mali and Guinea-Bissau losing AGOA preferences
Presidential Proclamation - African Growth and Opportunity Act TO TAKE CERTAIN ACTIONS UNDER THE AFRICAN GROWTH AND OPPORTUNITY ACT AND FOR OTHER PURPOSES BY THE PRESIDENT OF THE UNITED STATES OF AMERICA A PROCLAMATION 1. Section 506A(a)(1) of the Trade Act of 1974, as amended (the "1974 Act") (19 U.S.C. 2466a(a)(1)), as added by section 111(a) of the African Growth and Opportunity Act (title I of Public Law 106-200) (AGOA), authorizes the President to designate a country listed in section 107 of the AGOA (19 U.S.C....
US official rebuts Africa trade criticism
The Africa Growth and Opportunity Act, a US law passed in 2000, was geared to enable African countries to export over 4,000 products quota-free and duty-free to the US. But a recent paper published by the Centre for the Study of African Economies at Oxford University claimed the AGOA had been inadvertently allowing Chinese apparel producers to send products to the US through Africa, gaining free access but with minimal assembly and value-added for the African countries they operated in. Florie Liser (pictured), assistant US trade...
Africa: The perfect storm for an enhanced AGOA
In September 2012, just as the 3rd Country Fabric was about to expire, a series of events conspired to create the perfect storm for an enhanced AGOA: The non controversial AGOA provision was, in a surprise turn of events, unanimously approved by the US Congress. The bill had, due to partisan gridlock, languished for over a year, and in the process, both American and African businesses suffered loss from the uncertainty of renewal. But the manner in which 3rd Country eventually passed gave hope to the then despondent stakeholders that...
Obama and Africa
US President Barack Obama has been criticised for having had too little engagement with Africa during his first term. Arguably because of his African heritage, there was much excitement when he was first elected in 2008. However, many Africans have felt let down and left out and the celebrations were, therefore, far more subdued after Obama’s 2012 re-election. There are some signs, though, that Africa could possibly feature more prominently during Obama’s second term. One of these is the fact that his administration has followed up on...