SA’s hosting of Agoa to ‘boost economy’

The confirmation of South Africa’s hosting of the upcoming 20th US-sub-Saharan Africa Trade and Economic Cooperation Forum of the African Growth and Opportunity Act (Agoa) has been hailed as good news for the country.

While trade union federation Cosatu and an economist said the news was “a confidence-building development for the local economy and business”, an independent political analyst yesterday said America wanted to strengthen its sphere of influence in Africa.

Against the background of an earlier diplomatic spat between SA and US ambassador to South Africa Reuben Brigety, independent political analyst Sandile Swana said SA’s hosting of Agoa was “not a sign that there is friendship and peace between South Africa and the US”.

“This is an American response and realisation that Africans are starting to be able to do as they please in the world of geo-politics,” said Swana.

In promoting Agoa, with South Africa playing a prominent role, Swana said the United States “relative to South Africa, has little options”.

“The hosting of Agoa in South Africa is the US way of sending a message to the world that they have their own ‘Brics Summit’ on an African soil to strengthen the sphere of American influence on the continent,” said Swana.

“The US is worried because African countries – particularly in West Africa – are kicking out France and other European powers, which have been exploiting them for the past 60 years of their minerals. Swana maintained that Agoa was “created as a political tool”.

“We should bear in mind that a few high-profile countries like Ethiopia have already been excluded from Agoa – countries that have now been embraced by Brics as members.

“We also need to open new markets for those companies and sectors doing business under Agoa, because Agoa is at times weaponised to force you to do what the Americans want,” he said.

“So, we do need to find alternative markets in China, India, Russia, Indonesia and elsewhere.”

Cosatu national spokesperson Matthew Parks said South Africa’s hosting of the Agoa forum was “a positive reaffirmation of the role SA must play”.

“SA has been mandated to lead the Agoa renewal negotiations on behalf of the continent,” said Parks.

Professor Raymond Parsons of the North-West University’s School of Business and Governance, described South Africa’s hosting of the Agoa gathering as “a confidence-building development for our economy and business”.

A major item on the agenda will be the future of Agoa, which is due to expire on 30 September 2025.