Zambia: Government to revive textile sector
Government has pledged to revive the local textile industry to enable it compete favourably on the United States (US) export market under the Africa Growth Opportunity Act (AGOA).
The move follows Zambia’s failure to penetrate the duty-free AGOA market which has been attributted to the country’s collapsed garments industry.
Commerce, Trade and Industry Deputy Minister Miles Sampa said Government was greatly concerned about the situation which had been caused by the underperforming local textile industry.
Mr Sampa said Government attached great importance to the revival of the local textile industry to enable it compete favourably on the AGOA export market.
“Government is committed to the revival of the local textile industry so that the country can increase its export base using incentives such as those obtaining under the AGOA export market facility,” Mr Sampa said. Government will soon meet all the stakeholders in the local manufacturing sector to look into the country’s failure to effectively utilise the US export market under AGOA even after more than a decade of its existence.
“The country’s performance on the US market under AGOA is of major concern to the Government and we will soon be talking to the manufacturers and exporters to see how best we can increase our exports to this market,” Mr Sampa said.
Private Sector Development Association (PSDA) chairperson Yusuf Dodia said in a separate interview that Zambia’s performance on the US export market was dismal and there is need for collaborative strategy between Government and the private sector to fully utilise it.
Mr Dodia said Micro-Small Medium-Scale Entrepreneurs (MSME’s) needed to be sensitised on how they could play an active role in the revival of the textile sector if Zambia was to penetrate the US through AGOA.
“There is very little information on the AGOA and what we need is a collaborative strategy between Government and the private sector to help us manage the demands of the US market,” he said.
Mr Dodia said Zambia still had an opportunity to develop its textile exports owing to a proposal by member states that the AGOA should be extended for the next 15 years.
A report published recently by the Hub Digest, under US department of Commerce, said Zambia had failed to export a single product to the AGOA market in 2013 due to uncoordinated textile industry.
Read related news articles
Zambia urged to benefit from AGOA
Zambia needs to take advantage of the African Growth and Opportunity Act (AGOA) as it still possesses opportunity for economic growth. Since its inception in 2000, AGOA has given duty-free and quota-free access to the United States market on about 6,000 products from qualifying African countries, including Zambia. Speaking at the Corporate Council on Africa (CCA)-sponsored US-Africa Business Summit under the theme “The US stake in Africa:...
19 June 2017
Zambia: ‘Regional integration vital for growth’
Zambia will continue strengthening its participation in regional economic integration and trade investment platforms because the agenda will promote the country’s industrialisation efforts, a senior Government official has said. Ministry of Commerce, Trade and Industry permanent secretary Kayula Siame also said there is need for continued private sector sensitisation on the eligibility of the over 6,000 products that are supposed to be...
14 October 2016
Zambia: AGOA strategy development initiative completed
The six month AGOA Strategy Development Initiative headed by the Honorary Consul of Zambia in California, Robert Sichinga Jnr and a team from the UCLA Anderson School of Management is complete and the final report was sent to the Zambia Development Agency. The final presentation was made at the UCLA Anderson School of Management on Friday March 11th in the presence of officials from the Consular Corp representing four other countries,...
15 March 2016
COMESA: AGOA-US exports swell to $17 billion
Common Market for Eastern and Southern Africa (COMESA) exports to America under the African Growth Opportunity Act (AGOA) has amounted to US$17 billion. The exports through the COMESA eligible countries amounted to $17.3 billion by November 2015. COMESA secretary general Sindiso Ngwenya said the United States-COMESA Trade and Investments Framework Agreement (TIFA) provides a more in depth copperation which could collaborate for mutally...
08 February 2016
US urges Zambia to diversify
The US government says the recent slump in copper prices serves as a timely reminder for Zambia to diversify its economy. US Ambassador to Zambia Eric Shultz says serious efforts must be taken to shift the economy to agriculture, tourism and power generation. Speaking when he officiated at the eighth US-COMESA consultative trade meeting, Ambassador Shultz also urged member countries to take advantage of the extended AGOA agreement to...
08 February 2016
Zambia to boost AGOA with strategy
Zambia has developed a strategy to help local exporters increase penetration of the United States of America market under the African Growth and Opportunity Act (AGOA). The National Response Strategy which has cost US$100,000 will be implemented to address the difficulties that Zambian companies faced in accessing the US market in the last 15 years of utilising the AGOA. AGOA was signed into law on May 18, 2000 as Title One of the Trade and...
23 April 2015
US-Zambia agricultural trade drops in 2014
Bilateral trade in agricultural products between Zambia and the United States dropped significantly in 2014, the Times of Zambia reported on Friday. Agricultural trade between the two countries dropped to 504,000 U.S. dollars from 732,000 dollars representing a 32 percent reduction, the paper said, quoting a report released by the U.S. Department of Commerce. The statement said the two countries had failed to utilize the Africa Growth...
11 January 2015
Zambia: Government, COMESA act to boost AGOA exports
The Government in collaboration with the Common Market for Eastern and Southern Africa (COMESA) has put in place a committee which will look at ways and means of increasing exports to the Africa Growth Opportunity Act (AGOA) market in the United States of America(USA). Commerce Trade and Industry Minister Bob Sichinga said there were a number of issues that needed to be addressed such as the Phytosanitary and sanitary measures. Mr Sichinga...
21 May 2014
Zambia: ZAM calls for incentives to utilise AGOA
The Zambia Association of Manufacturers (ZAM) has called for incentives that will improve Zambia's chances of penetrating the Africa Growth Opportunity Act (AGOA) apparel market. ZAM chief executive officer Maybin Nsupila said predictable economic policies were imperative if the country's chances of penetrating the United States (US) AGOA market were to brighten. Mr Nsupila said in an interview that a predictable policy environment can...
02 April 2014
American Chamber to lobby for AGOA extension
The American Chamber of Commerce in Zambia is planning to partner with the Zambian business community to lobby for extension of the African Growth Opportunity Act (AGOA) which expires in 2015. Chamber executive director John Payne said AGOA was important for the strengthening of business engagements for both Zambia and the United States (US) hence, the need to extend it. Mr Payne said the organisation would use the...
26 September 2013
Zambia: Government, stakeholders' AGOA review timely
Government's initiative to engage the Zambia Association of Manufacturers (ZAM) and other stakeholders to review the country's performance under the African Growth Opportunity Act (AGOA) duty-free export market, underscores the importance it attaches to the development of the manufacturing industry. Its concern emanates from Zambia's failure to export products to the lucrative US market despite the numerous incentives offered under the AGOA...
12 September 2013