[PDF]African Growth & Opportunity Act Pamphlet

Embassy of the United States of America



African Growth and Opportunity Act




Fabrics like these enjoy duty-free access to U.S. markets, leaving distance and transportation costs as the primary limiting factors. ©Shutterstock.com



The African Growth and
Opportunity Act (AGOA),
enacted in 2000, allows
39 eligible African countries to
export most products duty-free to
the United States. The 39 African
countries are: Angola, Benin,
Botswana, Burkina Faso, Burundi,
Cameroon, Cape Verde, Chad,
Comoros, Cote d'lvoire, Republic
of Congo, Djibouti, Ethiopia,
Gabon, The Gambia, Ghana,
Guinea, Kenya, Lesotho, Liberia,
Malawi, Mauritania, Mauritius,



Mozambique, Namibia, Niger,
Nigeria, Rwanda, Sao Tome and
Principe, Senegal, Seychelles,
Sierra Leone, South Africa, South
Sudan, Swaziland, Tanzania,
Togo, Uganda and Zambia.

Trade has proven to be a power-
ful engine of growth, and the
theme of the 2013 AGOA Forum
is Sustainable Transformation
through Trade and Technology.
Private sector and civil society
programs will take place August



10-11, preceding the two-day min-
isterial in Addis Ababa, Ethiopia,
August 12-13.

AGOA promotes economic devel-
opment and expedites the inte-
gration of African economies
into the world trading system. It
provides a framework for govern-
ments, the private sector and civil
society to work together to build
trade capacity and expand busi-
ness links between the United
States and Africa.



African Growth and Opportunity Act



Increasing trade capacity involves technical assistance
on world trade rules, customs reform and moderniza-
tion, development of industry standards and regula-
tions, intellectual property rights (IPR) enforcement
and infrastructure modernization.

In 2012, eligible countries exported nearly $35 bil-
lion in products to the United States under AGOA and
its related General System of Preferences (GSP) pro-
visions. Total exports under AGOA have risen more
than 300 percent since the program's start. Although
petroleum products accounted for 84 percent of AGOA
imports to the United States in 2012, the program has
helped promote other, value-added exports such as
vehicles, apparel, footwear, processed agricultural
products and manufactured goods. Non-oil exports
to the United States from sub-Saharan Africa totaled
$4.7 billion in 2012, rising more than 250 percent since
AGOA's inception.

AGOA has helped many African countries — Lesotho,
Swaziland and Kenya, for example — to create tens of
thousands of new jobs and boost their international
competitiveness.

Lesotho is a good example of how AGOA makes a
difference. In Lesotho, AGOA has spurred a vibrant
textile and apparel industry that is the nation's larg-
est private sector employer. The sector has generated
more than 36,000 jobs, mainly for women. Lesotho is
now sub-Saharan Africa's largest exporter of garments
to the United States, with more than $300 million in
clothing exports to the U.S. in 2012 under AGOA.

Since AGOA's adoption, Mauritius' exports to the U.S.
have grown more than 400 percent. The textiles and
apparel sector has grown annually at a rate of 5 per-
cent and leading nonapparel exports have grown at an
overall rate of 12 percent since 2001, AGOA has con-
tributed to an expansion of the apparel industry in
Mauritius on a scale that the country likely would not
have achieved otherwise.

Women are key beneficiaries of AGOA. The African
Women Entrepreneurship Program (AWEP), started
by the U.S. State Department in 2010, is a network of
women-led businesses that has been exporting to the
United States under AGOA since 2010. There are cur-
rently 152 members in 48 countries. AWEP companies



trading under AGOA can be found in Ghana, Cameroon,
Kenya, Ethiopia, Liberia, Cote d'lvoire, Mauritania,
South Africa, Swaziland, Tanzania, and Zambia in
agribusiness, textiles, home decor, food processing
and other sectors. AWEP entrepreneurs have played
a critical role to ensure that gender issues are consid-
ered under AGOA.

AGOA also supports regional economic integration and
provides incentives for African countries to improve
their investment climates, reduce corruption, respect
human rights and the rule of law, improve infrastruc-
ture and harmonize trade standards to help them
become more competitive in the global marketplace.

Empowering Trade

During his recent trip to Africa, President Obama
announced "Power Africa" and "Trade Africa," two
initiatives to support the continent's economic growth,
increase trade and "unleash the power of entrepre-
neurship and markets to create opportunity here in
Africa."

With more than two-thirds of the population of sub-
Saharan Africa's population without electricity, lack
of accessible and affordable energy is a key constraint
to economic growth. The president's Power Africa ini-
tiative seeks to double access to power in sub-Saha-
ran Africa. Power Africa will bring to bear a wide
range of U.S. government tools to support investment
in Africa's energy sector, from policy and regulatory
best practices, to pre-feasibility support and capacity
building, to long-term financing and technical assis-
tance. The initiative will also leverage private sector
investments, beginning with more than $9 billion
in initial private sector commitments to support the
development of more than 8,000 megawatts of new
electricity generation in sub-Saharan Africa.

Trade Africa is a new partnership to increase internal
and regional trade within Africa and expand trade and
economic ties between Africa, the United States, and
other global markets. Trade Africa will initially focus
on the member states of the East African Community
(EAC), with the goals of doubling intra-regional trade
in the EAC and increasing EAC exports to the United
States by 40 percent. It also will support EAC regional
integration and increasing EAC trade competitiveness.





President Barack Obama, during a visit to the continent in late June and early July 2013, affirmed the U.S. commitment to supporting expanded trade with African nations. ©AP Images



The United States will also form
public-private partnerships with
East African and U.S. industries
and trade associations to stimu-
late trade in goods under AGOA.
The United States also hopes to
expand its collaboration with other
regional economic communities in
Africa, including in cooperation
with other partner nations.

The U.S. Agency for International
Development (USAID) currently
supports private sector engagement
and investment in Africa through
three regional trade hubs in
Accra, Ghana; Nairobi, Kenya; and
Gaborone, Botswana. These trade
hubs provide technical assistance



to governments, private sector
and civil society organizations to
enhance their competitiveness in
global markets and help African
businesses use trade opportuni-
ties available under AGOA. The
trade hubs also support African
businesses and entrepreneurs in
writing business plans, raising
capital, increasing productivity
and improving production pro-
cesses so that they can meet U.S.
and world export standards. In
support of AGOA and Trade Africa,
USAID will seek to strengthen the
trade hubs and build their capac-
ity for effectively supporting trade
and investment in Africa.



Extending AGOA

The Obama administration will
work with Congress to extend
AGOA beyond the current 2015
expiration. The 2013 AGOA
Forum will celebrate the progress
achieved through AGOA since its
inception in 2000 and will help
pave the way to AGOA's renewal
so that more Africans can take
advantage of the opportunity to
export to the United States. The
forum will engage ministers from
AGOA countries and senior U.S.
officials in a dialogue on the future
of U.S. -African trade and economic
cooperation.




UNITED STATES DEPARTMENT OF STATE

BUREAU OF INTERNATIONAL INFORMATION PROGRAMS