Johannesburg, South Africa, is set to host the 20th African Growth and Opportunity Act (AGOA) forum from November 2 to 4. This event is a significant opportunity for stakeholders to discuss and address challenges and opportunities in trade and economic cooperation between the United States and Africa. The AGOA, established in 2000 by the United States, serves as a cornerstone for economic partnership, promoting growth and poverty reduction in African countries. The forum will include discussions on expanding trade and investment relationships between the United States and Sub-Saharan Africa, emphasizing regional integration and Africa’s role as a global economic partner.
It follows a series of commitments made during the mid-December African leaders summit in Washington, where U.S. President Joe Biden pledged $55 billion for various investment projects across Africa. The forum aims to build on these commitments, exploring new favorable conditions and the potential renewal of the AGOA partnership, set to expire in September 2025. AGOA grants eligible Sub-Saharan African countries duty-free access to the U.S. market for over 1,800 products, fostering trade and commercial services. African governments and industry groups are advocating for an early 10-year extension of AGOA to provide stability for businesses and investors. South Africa plays a pivotal role in AGOA’s extension, engaging in direct discussions with U.S. government and business representatives, as well as members of the U.S. Senate and Congress.
South Africa’s participation in AGOA also benefits neighboring countries through interconnected value chains. The forum will also address the decision by U.S. President Joe Biden to terminate the participation of Gabon, Niger, Uganda, and the Central African Republic in AGOA, effective from the start of 2024. This decision is based on concerns related to human rights violations and political pluralism. The exclusion from AGOA is expected to impact the economies of these countries. The Democratic Alliance, South Africa’s main opposition party, has expressed concerns about the potential impact on South Africa’s economy if its access to AGOA is revoked, particularly highlighting the risk to the automotive sector. As global dynamics evolve, the United States is keen on maintaining and enhancing its economic influence in Africa.
U.S.-Africa trade was valued at $25.5 billion in 2022, with significant contributions to various sectors like Ethiopia’s and Kenya’s textile industry and South Africa’s automotive industry. The U.S. Government has facilitated numerous trade and investment deals across Africa, emphasizing the importance of the African Continental Free Trade Agreement (AfCFTA). The AfCFTA aims to unite over 1.4 billion people in a $2.5 trillion economic bloc, offering extensive trade and investment opportunities. The Corporate Council on Africa, a prominent American business association, highlights the AGOA forum as a platform for showcasing progress in diverse sectors of Africa’s economy. The Council has been instrumental in facilitating trade and investment deals across the continent. The African Union (AU) plays a key role in Africa’s development and integration, working in close collaboration with the United States, especially in the context of the AfCFTA. The AU’s efforts are complemented by the Biden-Harris administration’s commitment to strengthening U.S.-Africa trade and commercial relations. The AGOA forum in Johannesburg represents a critical juncture for U.S.-Africa economic relations, offering a platform for dialogue, partnership, and mutual growth.
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