The US Department of State has allayed fears around Agoa (Africa Growth and Opportunity Act) policy continuity, reiterating to delegates at the Agoa Forum 2017 in Togo last week that the US Congress had voted in 2015 to extend the Act through to 2025.
“This offers African and American entrepreneurs some certainty to grow trade during this period,” said Brian Neubert, director of the Africa Regional Media Hub at the US Department of State.
Speaking to FTW from Togo, he said that infrastructure and logistics had to be improved in Africa, while better access to finance and improved quality control measures were further priorities.
The US-Africa economic partnership was “strong and growing”, he added.
“African non-oil exports to the United States reached $4.2 billion in 2016. And African markets are more and more attractive to US businesses. Many American companies find opportunities in accompanying African economies to modernise and industrialise,” he explained.
Neubert conceded that there were many challenges and much work to do. “This is why the private sector and civil society leaders meet at every Agoa Forum and present their recommendations to ministers and other government officials.”
USAID has operated trade hubs and satellite offices to help overcome obstacles. Togo, host of this year’s forum, for example, is on the cusp of concluding a threshold agreement with the Millennium Challenge Corporation to address information technology and land rights.
“The $4.2 billion figure for non-oil African exports to the United States should grow and diversify,” he said.
“In earning Agoa eligibility, as 38 nations have done, countries also improve governance and business conditions – and that attracts foreign investment.”
He said South Africa had been a model beneficiary under Agoa, taking advantage of US market access as much as any other country.
“The United States is committed to Africa,” he affirmed in his opening address. “We see great potential to grow and deepen our trade relationship, with the goal of establishing a true partnership for the future.”
However, US trade representative Robert Lighthizer concluded on a cautionary note.
“Let us focus on ways we can achieve deeper commercial engagement now, while working towards greater reciprocity in the future. We must chart a path toward a stronger and more sustainable trade relationship,” he said.
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$4.2bn
African non-oil exports to the US in 2016.
