LEADERS at the US-Africa Business Summit in Botswana have stressed the importance of renewing the African Growth Opportunities Act (AGOA), a trade deal that grants preferential access or tax-free exports to the US market for some African countries. The agreement is set to expire in 2025, and African delegates at the summit have urged Washington to extend the deal.
Botswana President Mokgweetsi Masisi, addressing the summit in Gaborone, made a plea for the renewal of AGOA. Since its implementation in 2000, AGOA has been instrumental in creating over 46,000 jobs in Africa and boosting exports to the United States.
President Masisi stated, ‘It is also our earnest hope that in consonance with the letter and spirit of the US-Africa Leaders Summit, the Biden administration will renew the African Growth and Opportunity Act initiative, which expires in 2025. The AGOA renewal now, with expanded mandates, will give a strong signal and confidence to the markets and serve as a catalyst for Africa’s industrialisation and inclusion into the global value chains.’
Florie Liser, CEO and President of the Corporate Council on Africa, emphasised the need to reassess AGOA in light of the African Continental Free Trade Area agreement. She acknowledged that significant changes have occurred in Africa and beyond since the establishment of AGOA. ‘The advent of the African Continental Free Trade Area is fostering much closer economic and commercial integration on the continent, which will spur the creation of regional and continental value chains and increase value added across key sectors. In many ways, the question is how best we can support this development,’ Liser said.
The Atlantic Council Africa Centre issued a report titled The Future of US-Africa Trade and Investment during the summit. The report analyses the future of AGOA and provides recommendations. Frannie Leautier, the lead author of the report and a senior fellow at the Atlantic Council, stressed the need for certainty and longer-term planning regarding AGOA eligibility to encourage investment. Leautier stated, ‘On extending or renewing AGOA, the idea is to realize the potential of AGOA for long-term development through greater certainty, planning, and skilled up support for capacity development and investment flow.’
Not all African countries currently benefit from AGOA, as some have been excluded due to coups and human rights violations. South Africa’s eligibility is being reviewed over allegations of arms sales to Russia.
Scott Nathan, CEO of the US International Development Finance Corporation, who is leading the US government delegation at the summit, reaffirmed the commitment to support Africa. Nathan emphasised the importance of working with African nations and people, saying, ‘[The] United States is focused on what we will do with African nations and people, and not for African nations and people. We work to deepen and understand our partnership, amplify African voices, and support the empowerment of Africans.’
The summit has attracted more than 1,300 delegates, including leaders from Eswatini, Lesotho, Mozambique, Niger, and Zimbabwe.
