Agoa keeps Railroad ticking over

Lesotho exports move through PE LEONARD NEILL THE EXTENSION of the Africa Growth and Opportunity Act (AGOA) by the US Government to 2015 has been welcomed by Railroad Africa’s Eastern Cape regional manager Don Swart. The Act, which allows duty free access for exports to the US, extends for three years a special third-country fabric provision that was set to expire in September this year. This permits African nations to import basic goods from outside the continent for use in the manufacture of apparel. Recently it was announced that tiny Lesotho had become Africa’s biggest clothes exporter to the US. The bulk of the textiles arriving in South Africa – mainly through Port Elizabeth harbour – are transported to the tiny landlocked kingdom. They are then re-exported in made-up form, with both operations being handled through Swart’s office. Statistics released by the US Embassy in Maseru reveal that Lesotho’s upward production trend is continuing. Exports for the first quarter of this year totalled US$101million compared to $83million in the same 2003 period. Lesotho exported US$393million in textile goods to the States during 2003, which was a 22% increase on the previous year’s figure. Keeping the flow of goods to and from Maseru continues to be one of Swart’s biggest challenges, with road and rail transport used. While rail users for consignments to and from Gauteng continue to face the problem of Spoornet wagon shortages, Railroad Africa has maintained a constant flow along the line to Lesotho. “Team work with the local Spoornet authorities has proved to be the answer,” says Swart. “We advise them of our requirements well in advance and work out schedules with them. The result has been a smooth operation. The textile industry in Lesotho is booming with this AGOA assistance, and the extended time brackets mean we have to keep our fingers on the rail movements to ensure the production lines are efficiently serviced.”