SA calls for early renewal of AGOA

South Africa is pushing for an early renewal of the African Growth and Opportunity Act (AGOA) to increase investorship in Africa and boost regional industrial development. President Cyril Ramaphosa emphasized the importance of AGOA at the AGOA Business Forum, highlighting the success stories of various African countries benefiting from the trade agreement. The President commended Kenya and Lesotho for their high utilization rates of AGOA, with 88% of Kenyan exports and 99% of Lesotho's exports to the United States qualifying for zero tariff treatment. AGOA has played a significant role in improving export competitiveness for certain African products, particularly textiles and apparel. Countries like Lesotho, Ethiopia, Mauritius, Madagascar, and Kenya have not only created tens of thousands of jobs through apparel exports but have also become reliable producers for American customers. South Africa's auto exports under AGOA have contributed to job creation in the country and within neighboring countries. The value chain that emerges from AGOA trade includes sourcing materials such as leather car seats from Lesotho, wiring harnesses from Botswana, copper wire from Zambia, rubber from various African countries, and steering wheel components from Tunisia. The Secretary General of the Africa Continental Free Trade Area, Mr. Wamkele Mene, has been instrumental in promoting intra-Africa trade processes and enhancing regional integration. AGOA plays a vital role in regional industrial development and contributes to diversifying trade beyond commodities reliance. President Ramaphosa emphasized the connection between AGOA and the African Continental Free Trade Area, stressing the importance of building Africa's productive capacities and increasing value addition per capita. The President highlighted the potential for AGOA exports to complement the efforts of African countries under the African Continental Free Trade Area. Leveraging the duty-free market access provided by the United States under AGOA could attract further investments from the United States. The engagement of trade ministers, labor unions, and civil society in AGOA discussions reflects a collaborative effort to drive economic growth in Africa. President Ramaphosa expressed optimism about the future benefits of AGOA and emphasized the progress made in promoting trade among African countries. He underlined the significance of bringing together key stakeholders in the economy to ensure a comprehensive and inclusive approach to economic development. South Africa's commitment to advancing trade and investment in Africa was evident in the President's remarks, highlighting the importance of AGOA in driving economic growth and prosperity across the continent.