Uncertainty over Agoa raises concern

African countries are paying more attention than usual to the internal politics within the United States as the question of preferential access to the United States comes up for review. In May 2015, the African Growth and Opportunity Act (Agoa) Act reaches the end of its present life. With the United States facing its own economic challenges, there could be strong internal opposition in the country to allowing preferential access to the home market. The strengthening of relations between China and nations across Africa could also count against the continent. In 2011, South Africa exported around $9.4 billion to the US, and imported $7.25 billion in return. SA ambassador to the US, Ebrahim Rasool, has called for the creation of a public-private “war chest” to enable South Africa to undertake targeted lobbying and advocacy initiatives with members of Congress and the Senate and key US government departments. South Africa is not alone. The Swaziland business community says that if Agoa is halted in September 2015, most of the industry’s foreign investors in the country’s textile industry will probably leave. A number of other African states, including Ghana, have launched initiatives but, as yet, there does not seem to be a coordinated continent-wide campaign.