Agoa import growth reflects success

The African Growth and Opportunities Act (Agoa) is still the major driving force behind the growth of African exports to the US. With a zero import duty rating for 6 500 African products going into America, it has had an impressive performance as a stimulator of African exports. As has become the norm, the top five Agoa beneficiary countries were Nigeria, Angola (both oilrich states), SA, Chad and the Democratic Republic of Congo (DRC). Other leading beneficiaries were Gabon, Ghana, Lesotho, Kenya and Cameroun. In purely SA terms, the consensus is that Agoa – which benefits sectors such as automotives, minerals, iron and steel, metals, chemicals, edible fruits and nuts, and beverages – has been a success in stimulating bilateral trade and investment between the US and SA. Recent trade figures from the department of trade and industry (dti) show that the total trade between the US and SA in 2010 increased to R52.4 bn. And Mavis Museisi, a director of International Trade: Americas Bilateral Economic Relations at the dti, said Agoa had been well received by the private sector in SA, which had led to the country becoming the largest non-oil exporter to the US under Agoa. In addition, she said that many SA and African companies had attracted investment companies in Europe, Asia, Latin America as well as the US due to Agoa.