Africa calls for industrialisation and Agoa deal extension

In marking the start of the three-day 20th African Growth and Opportunity Act (Agoa) forum, Africa yesterday called for industrialisation and beneficiation in its foreign trade dealings. The continent is pushing for the US to realise the extension of to up to 20 years of the term of the multibillion-dollar Agoa deal.

Agoa extension

With US President Joe Biden having this week come out in support of the reauthorisation of Agoa, he has described as “a landmark, bipartisan law that has formed a bedrock for US trade with sub-Saharan Africa for more than two decades”.

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The continent’s trade ministers converged in Johannesburg to hear how the extension would create a long-term stable investment atmosphere.

Since its enactment in 2000, Agoa has been at the core of US economic policy and commercial engagement with Africa, providing eligible sub-Saharan African countries with duty-free access to the American market for over 1 800 products.

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By providing new market opportunities, Agoa has helped bolster economic growth, promoted economic and political reform and improved US economic relations in the region, with a total of 36 countries eligible for Agoa benefitting in 2022.

African challenges

Addressing African trade ministers in Nasrec, south of Joburg, Trade, Industry and Competition Minister Ibrahim Patel said Africa would develop a common view before a meeting with US representative today.

Patel said Africa had “a compelling story to tell as an African continent, although beset by some challenges to address”.

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“As we focus on African industrialisation, the key story must involve regional value chains – what we here in South Africa call beneficiation,” he said.

“Exports to the US draw on those value chains, pulling in raw (materials) and manufacturing (them) into seamless products that get exported to the US.

“As our US friends look at the African continent, we want them to see this as a major place of procurement, not just from one country but from across the continent. He said Africa was “ready to embrace the challenge of industrialisation and over the next three days we will be pursuing that objective through several related and interlocking activities”.

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Ambassador Albert Muchanga, African Union commissioner for economic development, trade, tourism, industry and minerals, said he was encouraged by the stance adopted by Biden and Senator John Kerry to extend the lifespan of Agoa.”

– brians@citizen.co.za