Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/East Africa: Kenya pips Tanzania in AGOA Trade

East Africa: Kenya pips Tanzania in AGOA Trade

East Africa: Kenya pips Tanzania in AGOA Trade
Kenya and Tanzania AGOA exports compared
Published date:
Monday, 29 April 2013
Author:
East African Business Week (Kampala)

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 doubled.

Tanzanian Minister for Industry and Trade, Dr Abdallah Kigoda told women of the African Women Entrepreneurship Program (AWEP) last week, "However as a nation we need to do more for the country to benefit fully from the facility, AGOA." Dr. Kigoda was officially launching the AWEP- Tanzania Chapter, in Dar es Salaam.

He advised entrepreneurs to standardize their products according to American tastes.

Tanzania exports under AGOA amounted to $2.120, 000 in 2010 which increased to $11.850,000 in 2012.

"American consumers are very sensitive to tastes, and our private sector in particular, those doing business with Americans are now adapting to the tastes and the demand of the US market. This is why today statistics indicate that trade has been growing," Kigoda said.

He outlined factors that contribute to the low export to the US including difficulties in fulfilling the US Sanitary and Phytosanitary (SPS) standards.

"We also have inadequate accredited laboratories for standards, high transportation costs between Tanzania and the US, but also the Tanzania business community lacks adequate US market information," he said.

Dr Kigoda mentioned other factors that dwindles Tanzanian business with the US as inadequate exposure of Tanzania products in the US market, inadequate market infrastructure, like storage facilities and lack of finance especially for small enterprises.

"We are poised to empower women entrepreneurs in Africa to impart positively on society and advocate for an enabling environment for women's effective participation in local and international trade and investments," the AWEP Tanzania Chapter Chairperson Flotea Massawe said.

Ms. Massawe said they were going to showcase Africa's intra-regional and international potential in trade and investment through the exhibition of exportable products.

"Tanzania women entrepreneurs have the ambition of filling up containers of processed agricultural products and other exportable products women produce under the AGOA trade arrangement," she said.

She requested policy makers to support women initiatives in economic endeavors, restating that they were ready to contribute to the socio-economic development of the country and its people and continue to create the much needed employment and wealth.

The US ambassador to Tanzania, Alfonso Lenhardt said the launch of the Tanzania Alumni Chapter of the African Women Entrepreneurship Program created a new important resource for entrepreneurs across Tanzania.

 

Read related news articles

Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade

The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....

19 March 2024

US President Biden to welcome Kenyan President Ruto to the White House in May

President Joe Biden plans to welcome Kenyan President William Ruto to the White House in May, hosting a state visit after reneging on his promise to visit Africa last year. White House press secretary Karine Jean-Pierre said Friday that the visit set for May 23 will mark the 60th anniversary of U.S.-Kenya diplomatic relations and "celebrate a partnership that is delivering for the people" of both countries while affirming "our strategic...

18 February 2024

'Nigeria missing as Kenya, Ghana tap AGOA opportunities to boost foreign exchange earnings'

Africa’s biggest economy is still failing to tap the opportunities that the African Growth and Opportunity Act (AGOA) present to boost its foreign exchange, amid acute dollar shortages. The AGOA has been on for over twenty-three years as it was enacted in 2020. In 2015, the program was modernised and extended to 2025, implying that there are only about 15 months before the window closes. Some countries have taken advantage of the AGOA more...

05 February 2024

CTI and CCA coming together to develop a US-Tanzania trade and investment strategy

The Confederation of Tanzania Industries (CTI) has partnered with the Corporate Council on Africa (CCA) to develop a strategic approach to increase US-Tanzania trade and investments. The call was made by Ambassador Elsie Kanza, the Tanzanian Ambassador to the US. Among many other things, Ambassador Kanza tasked CTI to bring more visibility and awareness to the opportunities to expand Trade and investment between Tanzania and the USA under the...

13 November 2023

Kenya-US to deepen ICT, apparel and agriculture trade

Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms.  A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...

09 November 2023

Kenya President Ruto joins US-Kenya business roadshow in San Francisco

Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a...

15 September 2023

AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth

The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...

08 August 2023

Kenya's president meets US delegates on trade and investments

Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...

19 July 2023

US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]

The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach.  Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...

17 July 2023

US boosts Kenya apparel industry with $55m in new trade deals

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...

29 April 2023

Why Africa, why Kenya? Remarks by US Ambassador to Kenya

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...

26 April 2023

You are here: Home/News/Article/East Africa: Kenya pips Tanzania in AGOA Trade