News / Africa

African Business Leaders Eye Expanded Exports Under US Trade

US Secretary of State Hillary Clinton (C), arrives at the opening session of the eighth Africa Growth Opportunities Act (AGOA) Forum in Kenya's capital Nairobi, August 5, 2009 (file photo)
US Secretary of State Hillary Clinton (C), arrives at the opening session of the eighth Africa Growth Opportunities Act (AGOA) Forum in Kenya's capital Nairobi, August 5, 2009 (file photo)

African business leaders are meeting in Zambia for talks on how they can take better advantage of U.S. trade preferences. The Obama administration wants Congress to extend those duty-free imports.

In the 10 years of trade preferences under the African Growth and Opportunity Act [AGOA], exports to the United States have grown from $23 billion to $64 billion.

U.S. Assistant Secretary of State for African Affairs, Johnnie Carson, said that has helped improve African business and African governance.

“AGOA has made progress in creating jobs, spurring economic growth and facilitating a dialogue on key economic and political challenges facing many countries in sub-Saharan Africa,” he said.

Extending AGOA

The AGOA program is set to expire in 2015. The Obama administration wants Congress to extend it for another 10 years. AGOA-eligible countries are allowed to export certain kinds of products to the United States duty free, which Washington says encourages trade, not aid.

Ghana, for example, exported nearly $400 million worth of AGOA-eligible products in the first quarter of this year, twice what it did last year.

The director of export services at Ghana's Ministry of Trade and Industry, Gerald Nyarko-Mensah, says AGOA opens doors but investors will only pass through those doors if a country has the right business climate.

American retailers Pier One and Target have ordered more than $3 million worth of Ghanaian home décor products through AGOA.

“Thousands of artisans had to be mobilized to produce the large quantities that these buyers wanted," said Nyarko-Mensah. "This kind of mass production had never happened in our country before. In the beginning, even the banks had difficulty because pre-financing such large orders was something they had not done previously for artisanal producers. So it has opened a whole new paradigm, particularly for micro-enterprises.”

Trade, not aid

Ugandan businesswoman Anne Babumba Magero exports organic soaps under AGOA. She said the program gives African women the power to make their own decisions about their own finances.

“We are more independent," she said. "Now we can look after our families. We can educate our children. We have done a lot for ourselves. We are not there waiting for our men to do each and everything for us. Yes.”

The director of private sector development at Angola's chamber of commerce and industry, Jose Rodrigues Alentejo, says his country is just starting to take advantage of AGOA.

“AGOA is a good opportunity, but we are not yet feeling the results," said Alentejo. "Only now are we starting to produce some products of quality and competitive prices. This means that we are now starting to approach the international market.”

Angola is part of the Common Market for Eastern and Southern Africa, or COMESA. The trade group's director for investment promotion and private sector development, Chungu Mwila, said the continent has not yet fully exploited AGOA's potential.

Tapping the full potential

“African governments have not been able to create the productive capacity to make them competitive with other economies elsewhere," said Mwila. "So it is narrow. The range of products is limited. If you look at the volumes, yes, there have been some increases here and there. But I think we could be doing a lot more under the provisions of AGOA.”

Textile and oil products still dominate AGOA exports. Mwila said his goal for this meeting in Zambia is to improve Africa's performance, especially in areas where it may have a competitive advantage, such as agriculture.

“The potential lies in agriculture, semi-processed agricultural products," said Mwila. "We need to diversify away from the textile industries, from petroleum products, so we are able to put semi-processed goods on that market.”

U.S. Secretary of State Hillary Clinton arrives Friday in Zambia to help close this AGOA forum. While in Lusaka, she will meet with Zambian President Rupiah Banda and speak to the U.S.-Zambia chamber of commerce.




You May Like

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

Euro falls after European Central Bank announces a bigger-than-expected $67 billion-a-month quantitative easing program More

Saudi King’s Death Clears Succession Route

Prince Mohammed Bin Nayef is Saudi Arabia's New Crown Prince-in-waiting More

Cloud Hangs Over US Counterterrorism Efforts in Yemen

Sources say resignations of Yemen's president, government has left US anti-terror operations 'paralyzed,' yet an American military 'footprint' remains More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Worldwide Photo Workshops Empower Youthi
X
Julie Taboh
January 23, 2015 11:08 PM
Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.
Video

Video Secular, Religious Kurds Face Off in Southeast Turkey

Turkey’s predominantly Kurdish southeast has been rocked by violence between religious and secular Kurds. Dorian Jones reports on the reasons behind the stand-off from the region's main city of Diyarbakir, which suffered the bloodiest fighting.
Video

Video Kenya: Misuse of Antibiotics Leading to Resistance by Immune System

In Kenya, the rise of drug resistant bacteria could reverse the gains made by medical science over diseases that were once treatable. Kenyans could be at risk of fatalities as a result if the power in antibiotics is not preserved. Lenny Ruvaga has more on the story from Nairobi.
Video

Video Solar-Powered Plane Getting Ready to Circumnavigate Globe

Pilots of the solar plane that already set records flying without a drop of fuel are close to making their first attempt to fly the craft around the globe. They plan to do it in 25 flying days over a five month period. VOA’s George Putic reports.
Video

Video How Experts Decide Ethiopia Has the Best Coffee

Ethiopia’s coffee has been ranked as the best in the world by an international group of coffee connoisseurs. Not surprisingly, coffee is a top export for the country. But at home it is a source of pride. Marthe van der Wolf in Addis Ababa decided to find out what makes the bean and brew so special and how experts make their determinations.
Video

Video Yazidi Refugees at Center of Political Fight Between Turkey, Kurds

The treatment of thousands of Yazidis refugees who fled to Turkey to escape attacks by Islamic State militants has become the center of a dispute between the Turkish government and the country's pro-Kurdish movement. VOA's Dorian Jones reports.
Video

Video World’s Richest 1% Forecast to Own More Than Half of Global Wealth

The combined wealth of the world's richest 1 percent will overtake that of the remaining 99 percent at some point in 2016, according to the anti-poverty charity Oxfam. Campaigners are demanding that policymakers take action to address the widening gap between the ‘haves’ and the ‘have nots’, as Henry Ridgwell reports for VOA from London.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid