13 Jul 2023

 African heads of state and business leaders meeting here for the US-Africa Business Summit have pleaded with Washington to extend its Africa Growth Opportunity Act (AGOA). 

Rallying the cry was President Mokgweetsi Masisi who in his keynote address Wednesday expressed hope that the US would extent the deal, adding doing so would be in harmony “with the letter and spirit of last year’s summit”. 

"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," he said. 

Lesotho Prime Minister, Mr Ntsokoane Matekanwe, echoed Dr Masisi’s sentiments saying the extension would allow African countries to continue building critical infrastructure for value chains, which remained the hope for Africa’s economy growth. 

He said the continent had in place functional trade organisations, such as Southern African Trade Union, SADC and the budding African Continental Free Trade Area (AfCFTA), and it was up to countries to ensure they had in place policies and strategies that allowed them to benefit, he said. 

In the case of Lesotho, they had the National Trade Strategy whose thrust was to take advantage of opportunities made through SACU, SADC and the AfCFTA. Extending AGOA, alongside Africa’s own trade organisations would facilitate growth of African economies through value chains. A typical example of that process was his own Lesotho, whose textiles industry exported to other African countries and beyond. 

"The country sources cotton from Southern Africa… processes it into denim fabric and produces jeans for South Africa, US and other export markets," he said. Lesotho also made car seat covers, which it exported to South Africa, which was an established automobile manufacturer and exporter. But these were only a few examples, he said. 

Abundant opportunity, still existed in wool and mohair production, diamonds, organic rosehip, cocoa, and many minerals, which sadly, African countries still exported in raw form and re-imported as finished products. 

Doing so not only took away Africa’s jobs and livelihoods, but it also exported the wealth of those countries. 

As such, he said, African countries still needed AGOA to develop the industries and their value chains. 

A major trade pact offering duty-free access into America’s huge economy for sub-Saharan African countries that meet democratic criteria, AGOA will cease in 2025. America has not announced if it will renew the pact or have a successor in its place. 

Meanwhile, African Association of Automotive Manufacturers representative, Mr David Coffey said Africa had a huge potential in the car manufacturing value chain. 

He said the continent needed to fine-tune its legislations and policies to allow for value chains’ development in the automobile manufacturing sector. 

He added AfCFTA presented massive opportunity for African states to develop such value chains. 

Also speaking at the session was First National Bank of Botswana Chief Executive Officer Mr Steven Bogatsu, who said his bank was eager to finance manufacturing projects. 

Mining, pharmaceuticals and farming undertakings were some of the projects the bank was already funding, he said. 

Mr Bogatsu advised African countries to work together towards full implementation of AfCFTA by removing trade barriers. 

He said AfCFTA, as the world’s largest free trade area provided a huge market for African countries to trade and they should expedite its full implementation to realise successes .ENDS