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Leaders at the U.S.-Africa Business Summit in Botswana have urged renewal of the long-standing Africa Growth Opportunities Act (AGOA). The trade deal gives some African countries preferential or even tax-free access for their exports to the U.S. market. The agreement is due to expire in 2025, and African delegates at the summit want the deal renewed. Botswana President Mokgweetsi Masisi, addressing delegates gathered in Gaborone for the summit, led the pleas to Washington to renew the arrangement. Since it was put into place in 2000, AGOA...

Has the African Growth and Opportunity Act (AGOA) achieved its goal of improving trade and investment between the U.S. and Africa? Created in 2000 and renewed in 2015, AGOA is a U.S. government trade program that gives countries in sub-Saharan Africa preferential access to U.S. markets, allowing them to export products to the United States tariff-free. AGOA has certainly helped boost African exports to the United States, but the trade data raise questions about why some countries are better able to capitalize on the...

South Africa’s place in the African Growth and Opportunity Act (AGOA) could be under threat due to SA's relationship with Russia. Motheo Khaoripe is joined by John Hudson, head of agriculture at Nedbank, to discuss the impact of South Africa's potential removal from AGOA. Listen to the interview here.  We export more than 50% of what we produce, so a market like the United States is really important, says John Hudson, Head of Agriculture - Nedbank. It's around 5% of our total exports, and last year our total exports were...

The American Apparel & Footwear Association (AAFA) recently urged the office of the US trade representative (USTR) to renew the African Growth Opportunity Act (AGOA) this year for at least another 10 years—or maybe longer—so that US companies will have the necessary certainty and timeframe they need to grow a vertical, responsible and competitive industry in Africa up to and beyond 2025. AAFA vice president for trade and customs policy Beth Hughes, in a letter to USTR’s trade policy staff committee chair William Shpiece, said the...

The DA has urged US legislators to keep SA as a member of a trade pact that gives African countries preferential access to US markets, saying its removal will have unintended consequences for both countries. This comes ahead of the US government’s virtual hearings, starting on July 24, when 35 sub-Saharan countries, including SA, are expected to make oral representations in a bid to retain trade benefits under the African Growth and Opportunity Act (Agoa). Written submissions were due on July 7. The DA submission to US trade...

The geopolitical fallout from Russia’s invasion of Ukraine is disrupting long-established relations and making the international economic and political landscape difficult to navigate.  Such disruption could threaten the ability of SA manufacturers to compete globally. In particular, the possibility of exclusion from the US’s legislated Africa Growth & Opportunity Act (Agoa), or even economic sanctions, is causing consternation in many industries. Agoa has been of significant value to SA. The automotive industry has benefited...

Different sectors of South Africa’s economy will be keeping a careful eye on discussions between the government and US representatives on the fate of the African Growth and Opportunity Act (Agoa) agreement. South Africa’s neutral stance on the war in Ukraine and the docking of the Russian vessel the Lady R in Cape Town amid accusations from US ambassador to South Africa Reuben Brigety that weapons were loaded on to the ship have strained diplomatic relations between the countries. Also, the US could decide that South African exporters...

South Africa should focus on attracting foreign investment and extending trade relations, the South African Chamber of Commerce & Industry (Sacci) said after business confidence fell to a year low. An index compiled by the chamber showed average business confidence declined to 106.9 in May from 107.1 a month earlier. The latest figure is the lowest since May 2022, when global headwinds exacerbated by Russia’s war on Ukraine fuelled inflation and capital outflows. “With a global economy that is slowly recovering, to perform...

When it was established during the Obama administration, the President’s Advisory Council on Doing Business in Africa—or its acronym PAC-DBIA—was an important initiative, and it still is highly relevant. After all, the body was charged with providing recommendations to the president of the United States through the secretary of commerce on how to increase the U.S. commercial presence in Africa. Who better to provide advice than some of the leading American companies on the continent? The U.S. companies represented on the PAC-DBIA...

South Africa is expected to send a high-level delegation headed by trade, industry & competition minister Ebrahim Patel to the US in July as part of the country’s plan to remain eligible for preferential access to US markets. Patel is expected make an oral submission to the office of US trade representative Katherine Tai to ensure SA remains one of 35 Sub-Saharan countries eligible for trade benefits under the African Growth and Opportunity Act (AGOA) for 2023. The submissions are to come ahead of the 10-year review of SA’s...

The South African department of international relations and co-operation (DIRCO) is adamant the AGOA Forum, which is intended to map the way forward for US-SA trade relations, will still be hosted in SA, despite a push by Washington’s legislators to move the conference to another country.  “There is no decision by the state department/White House to move the Agoa (African Growth and Opportunity Act) Forum from SA,” said Dirco spokesperson, Clayson Monyela.  “President Cyril Ramaphosa’s special envoys recently visited...

Powerful leaders of the US Congress have called on the Biden administration to move this year’s Africa Growth and Opportunity Act (AGOA) forum from South Africa to another African country because of South Africa’s perceived support of Russia in its war against Ukraine.  The letter from top legislators of both the Democratic and Republican parties is the first clear and concrete sign of possible US retaliation to Pretoria’s stance on Russia’s war against Ukraine which has been controversial in the US and other Western...

South Africa is accused of helping supply Russia with weapons for the Ukraine war, a charge that South Africa denies. A bipartisan group of American lawmakers has asked the Biden administration to punish South Africa for what it sees as the country’s support of Russia’s war in Ukraine by moving a major trade conference scheduled to be held in South Africa this year to another country. The request, made in a letter sent last week, is the first concrete effort at retaliation by members of the U.S. government over the growing view in...

Luxury jewellery brand Pichulik is one of the thriving local companies at risk of losing preferential US market space if South Africa is excluded from the African Growth & Opportunity Act (AGOA) arrangement. Billions of rand in trade with the US flows in South Africa’s direction under AGOA; it gives certain companies tariff-free access to the US market, and constitutes about 30% of total sales. But because of this country’s [alleged] support for Russia in its invasion of Ukraine, it is in danger of losing these benefits....

Trade relations between the US and Africa have centred on Congress’s ‘Africa Growth and Opportunities Act’ (AGOA) since 2000, designed to foster the continent’s economic development and prosperity via preferential access to American markets. Yet in the last decade African trade with the United States has stagnated at much the same levels as it was when the Act was passed. David Luke and Jamie Macleod consider how the original impetus behind the AGOA can be revived. Until the Biden Administration, US-Africa...

President Biden called for the immediate repeal of Uganda’s new Anti-Homosexuality Act [ download statement alongside] and warned of possible sanctions in a statement Monday, as his administration evaluates “the implications of this law on all aspects of U.S. engagement with Uganda.”  “This shameful Act is the latest development in an alarming trend of human rights abuses and corruption in Uganda.  The dangers posed by this democratic backsliding are a threat to everyone residing in Uganda, including U.S....

South Africa currently enjoys valuable preferential access to mainly traditional markets – the EU, UK, US, Africa and some South American countries (under Mercosur).  In the equally lucrative and fast-growing South and East Asian region, only one agreement potentially exists - a preferential trade agreement with India that remains under negotiation. No trade agreements exist with Middle Eastern states.  However, government maintains close relationships with most markets in these regions and efforts continue to deepen trade....

Our agricultural sector’s relationship with the US is a two-way stream that is mutually beneficial based on intrinsic value. When preparing for the Agoa summit, this is the narrative we should be pushing.  The comments by US Ambassador Reuben Brigety regarding theLady R shipments sent the South African currency plummeting and inflamed fears about South Africa’s future trade relations with the US. This is a high-stakes issue for South African business, and the agricultural sector in particular. In 2021, South Africa’s total...

Amid diplomatic tensions with the US over an alleged sale of arms to Russia, South Africa is continuing to make the case for its ongoing designation as a beneficiary of the Africa Growth and Opportunity Act (AGOA), which extends preferential trade access to the giant American market on certain goods and is due to expire in 2025. In a briefing ahead of his Budget Vote, Trade, Industry and Competition Minister Ebrahim Patel said that he shared the anxiety expressed by Finance Minister Enoch Godongwana about the potential...

IN 2000, President Bill Clinton’s administration passed special trade laws to promote trade ties between the US, Africa, and the Caribbean. One of the enactments was the African Growth and Opportunity Act, AGOA. To be eligible to access the benefits of the Act, participating countries are required to meet certain criteria set by the US government. Among the long list of requirements is the adherence to international human rights standards. By insisting that countries seeking to take advantage of the Act to market their products to the...

South Africa’s citrus exports to the United States have over recent years grown to a value of $132m (2022), a consistent performer during the past few turbulent seasons – but it is at risk if the United States decides not to extend their free trade agreement with South Africa due to the latter’s recent closeness to President Putin.During the Clinton administration the United States introduced AGOA, the African Growth and Opportunity Act, a preferential trade agreement with many African countries of which South Africa is by far the...

Consistent with the Biden-Harris Administration’s commitment to the highest levels of transparency in trade agreement negotiations, the Office of the United States Trade Representative (USTR) today released summaries of texts  ( Download the document alongside or in the Kenya-US STIP section) proposed by the U.S. side during the first negotiating round of the United States-Kenya Strategic Trade and Investment Partnership (STIP), which was held in Nairobi, Kenya from April 17-20, 2023.  The goal of the Partnership is to...

The Office of the United States Trade Representative (USTR) is announcing the initiation of the annual review of the eligibility of sub-Saharan African countries to receive the benefits of the African Growth and Opportunity Act (AGOA). The AGOA Implementation Subcommittee of the Trade Policy Staff Committee (AGOA Subcommittee) is requesting written public comments for this review and will conduct a virtual public hearing on this matter. In developing its recommendations for the President on AGOA country eligibility for calendar year 2024,...

The national security adviser to South Africa’s president Cyril Ramaphosa said it was in his country’s “own interest” to investigate a US accusation that arms were covertly transported to Russia from a Cape Town naval base, as Pretoria tried to calm a diplomatic storm. In an attempt to emphasise South Africa’s neutrality in the conflict between Russia and Ukraine, its foreign ministry said that Ramaphosa would speak to Ukraine’s president Volodymyr Zelenskyy on Saturday. Ramaphosa called Russian president Vladimir Putin earlier...

The United States (US) has accused the South African government of supplying ammunition to the Russian Federation through a ship that docked at a naval base in Simon’s Town in South Africa’s Western Cape province late last year. This shock allegation highlights the increasingly strained relations between the US and South Africa and places billions of Rand worth of preferential trade between the countries at risk. “We are confident that weapons were loaded onto that vessel,” said US Ambassador to South Africa, Reuben Brigety, during...

The Nigerian Minister of Industry, Trade and Investment (FMITI), Adeniyi Adebayo has urged Nigerians to take advantage of the African Growth Opportunity Act, (AGOA). Adebayo said this when he received the report of the Technical Committee on the utilization of AGOA in Abuja on Tuesday. The report which was delivered by the Co-chairman of the Committee and Director of Trade, FMITI Suleiman Audu on behalf of the Chairman of the Committee and Director General of the Nigerian Export Promotion Council, Ezra Yakusak stated that the Committee...

There was more good news for the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement in December 2022, when a Memorandum of Understanding (MoU) was signed between the United States (US) Trade Representative and the AfCFTA Secretariat at the US-Africa Leaders’ Summit (Summit) in Washington DC. The MoU covers expanded engagement between the two regions and intends to “promote equitable, sustainable, and inclusive trade; boost competitiveness; and attract investment to the continent.” It was also...

The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and Prosper Africa – a US government initiative to increase trade and investment between African...

President Cyril Ramaphosa’s national security adviser Sydney Mufamadi is in Washington at the head of a delegation lobbying the Biden administration and congressional leaders. This comes amid concerns that South Africa’s controversial stance on Russia’s war against Ukraine is jeopardising SA’s economic and political relations with America. Sydney Mufamadi’s team is likely to focus its efforts on trying to ensure that South Africa is not expelled from the Africa Growth and Opportunity Act (Agoa), a US law that gives duty- and...

Thank you, Scott, for the kind introduction. It is a pleasure to partner with the Prosper Africa initiative to drive investment in Kenya and countries across the African continent. I am happy to kick off our U.S.-Kenya Business Roadshow with all of you today, and to announce that we will be partnering with Prosper Africa throughout the year to engage businesses and investors in cities across the United States. Our next stops include San Francisco and Chicago. A lot of people have often asked me, “Why did you want to be the ambassador to...

South Africa’s citrus sector in the western parts of the country has always retained a keen interest in US political views over promoting African trade to the US Promoting better access for Africa into the US is done mainly under the AGOA (African Growth and Opportunities ACT) which have benefited exporters from Africa since 2000. It will now be under review and perhaps re-negotiated during the next year if a new act has to come into effect in 2025. It is certain that in the USA there will be calls for changes where the House of...

The text of the following statement was released by the Governments of the United States of America and the Kenya on the occasion of U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. Begin Text: The Governments of the United States of America and the Republic of Kenya held the third iteration of the U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023.  The U.S.-Kenya Strategic Partnership is grounded in mutual cooperation, respect, and a common vision for sustainable...

Kenya and the United States of America have successfully completed the second round of negotiations on Strategic Trade and Investment Partnership (STIP), an agreement that aims to strengthen the two countries’ bilateral and investment relations. Ministry of Investment, Trade, and Industry Cabinet Secretary Moses Kuria said a lot of progress has been made in the negotiations, an indication that both states are committed to enhancing trade between the two countries. He said the partnership also aims at boosting trade and investment...

The impact of the African Growth and Opportunity Act (AGOA) programme on beneficiary countries within Sub-Saharan Africa (SSA) can be substantial depending on the sector, according to a report by the US International Trade Commission (USITC). The programme has had a positive impact on poverty reduction and job growth in some countries, particularly in the apparel sector. AGOA benefits accrue to a subset of countries and sectors within Sub-Saharan Africa (SSA). Over three-quarters of non-crude petroleum imports under AGOA originated from...

Nearly 23 years since the United States established the African Growth and Opportunity Act, or AGOA, the continent it was created for no longer exists. In the last two decades, there have been three major shifts that have worked together to cultivate a new Africa—an Africa that requires a different approach to trade and economic investment. First, there are China’s development initiatives, which have resulted in roads, rails, bridges, and airports. China has also invested in mining, fishing, and manufacturing, and shown...

The administration of Kenya’s President William Ruto has begun the negotiation round of the proposed bilateral deal with the United States, which will replace the more-than-two-decade-old African Growth and Opportunity Act (Agoa) amid protestations from smallholder farmers. The four-day talks, which kicked off in Nairobi on Monday, follow the round of conceptual discussions held in Washington between February 6 and 10. President Ruto’s negotiating team, led by Trade PS Alfred K’Ombudo, and the Assistant US Trade Representative for...

A major U.S. trade preference program for Sub-Saharan Africa has been successful for developing the region's apparel sector in selected countries, but its benefits are not widespread throughout all countries and sectors, a new report to the U.S. Congress showed on Monday. The U.S. International Trade Commission (USITC) said its  report on the African Growth and Opportunity Act (AGOA) trade benefits shows that they have helped reduce poverty and create jobs in certain countries, particularly for women. But over three quarters of...

Stakeholders now want the government to exclude agriculture digital trade and anti-corruption in its Strategic Trade and Investments Partnership (STIP) with United States. Econews Africa, a pan African Research and Advocacy organisation and Kenya Small Scale Farmers Forum (KESSFF) say that Kenya will likely be the loser in the pact is signed in its current state. The STIP is a proposed agreement to act as a successor to the African Growth and Opportunity Act (AGOA) mechanism that has guided trade between Kenya and US enabling the two...

Cameroon is working to boost export revenues to fend off a potential debt crisis and has relaunched talks with the U.S. to rejoin Washington's flagship trade initiative with Africa, its economy minister said on Monday. The economic fallout from the COVID-19 pandemic and the subsequent global shocks provoked by the war in Ukraine have hit African countries hard, denting economic growth and aggravating their sovereign debt positions. The International Monetary Fund (IMF) forecasts that Cameroon, a Central African oil producer, will record...

Last year, the US’s Biden administration announced plans to increase two-way trade and investment between the US and Africa. The starting point was a revamp of the Trump-era “Prosper Africa initiative”. As American secretary of state Antony Blinken visits three African nations – South Africa, Democratic Republic of Congo and Rwanda – Kefa Otiso and Francis Owusu provide insights into US-Africa trade relations and what’s being planned to improve them. What sort of trade arrangement is the US proposing? In July 2021,...

The Somali government officially applied to join the 36 African countries on Thursday, benefiting from the African Growth and Opportunity Act (AGOA). The announcement was made during the Somalia AGOA application ceremony, where outgoing U.S. Ambassador to Somalia, Larry André, highlighted the United States’ commitment to expanding and modernizing partnerships in Africa and Somalia. Ambassador André emphasized that the U.S. will focus on working with Somalia and its people to find innovative solutions to new and...

Kenya is hopeful of sealing a trade deal with the US by the end of this year, as the second round of physical meetings heads to Nairobi next month. This comes a mid increased interest in Kenya’s Small and Medium-sized Enterprises (SMEs) by the US at this year’s American Chamber of Commerce (AmCham) Business Summit in Nairobi, a strategic platform for strengthening two-way trade and investment between the two countries, and East Africa. A US delegation is expected in Nairobi next month for what is expected to be a...

The United States and Kenya will hold an in-person negotiating round under their Strategic Trade and Investment Partnership (STIP) in Kenya from April 17-20, 2023.  The United States delegation will be led by Assistant United States Trade Representative Connie Hamilton, and will include representatives from several other U.S. government agencies. Conceptual discussions under the STIP initiative were held in Washington, DC, on February 6-February 10, 2023. During those meetings, the United States and Kenya engaged in productive...

One of the biggest and most influential US business lobby groups in America and a top American lawmaker on trade have urged the Biden administration to fast-track the Trump-era trade talks with Kenya, piling pressure on Washington to conclude the negotiations. They also want Washington to dialogue with Nairobi on the basis of the original or initial proposed model of a free trade agreement with Kenya, which was initiated by Biden's predecessor Donald Trump. They say such a trade deal has many benefits for the US but also Kenya and will...

The East African Community (EAC) wants the US government to make the rules governing access to their market more flexible under the planned renewal of the African Growth Opportunity Act (AGOA). The regional bloc, during its Council of Ministers Ordinary meeting held in February, made four new proposals to the Joe Biden administration to expand Agoa and make it more effective should the US Congress hasten its renewal before the 2025 expiry date. The proposals come in the wake of plans by the American Chamber of Commerce Kenya (AmCham), a...

U.S. Secretary of State Antony Blinken praised Ethiopia on Wednesday for its progress in implementing a peace deal to end the Tigray conflict, but stopped short of ushering the country back into a U.S. trade programme. Visiting Ethiopia to repair relations that were strained by the two-year war in the northern region, Blinken met with Prime Minister Abiy Ahmed and discussed ongoing efforts to solidify peace, restore basic services and address humanitarian needs. The Ethiopian government and forces from Tigray signed a ceasefire in...

Ethiopia is asking the Joe Biden administration to reinstate its duty-free access to the US market, arguing that “exceptional circumstances” warrant an immediate re-examination of its suspension just as Secretary of State Antony Blinken heads to Addis Ababa to discuss the cessation of hostilities in Tigray. The Office of the US Trade Representative (USTR) terminated Ethiopia’s participation in the African Growth and Opportunity Act (AGOA) program effective 1 January 2022, accusing Prime Minister Abiy Ahmed’s government of “gross...

Women entrepreneurs are important sources of innovation, job creation, and economic growth, and critical actors in every aspect of the agriculture value chain.  The U.S. Embassy is pleased to partner with the American Chamber of Commerce in Madagascar (AmCham) to empower Malagasy women entrepreneurs in the agriculture sector to access U.S. markets.  More than half of AmCham Madagascar’s member companies operating in the food sector are led by women, but many of these companies do not take advantage of the lucrative U.S. market...

Kenyan manufacturers have asked the Trade ministry to request Washington to extend the existing duty- and quota-free access to the expansive US market window for another 15 years as the two countries prepare for talks over a long-term bilateral trade deal. The Kenya Association of Manufacturers, the sector lobby, argues that uncertainty over the more than two decades-Growth and Opportunity Act (AGOA) deal, which expires in two years, is costing the country billions of shillings in potential investments. “Kenya should seek an Agoa...

In the middle of an energy crisis and greylisting, SA could do without antagonising one of its biggest trade and investment partners. When SA welcomed the Russian warship Admiral Gorshkov — with the Kremlin’s pro-war symbol, the letter “Z”, on prominent display — it sparked a new diplomatic crisis with the US that could have profound economic consequences.    This past week the US Congress introduced a resolution to reconsider its relationship with SA. House Resolution 145 opposes SA’s hosting of military exercises...