RAMAPHOSA BACKS CALLS FOR EARLY RENEWAL OF AGOA

President Cyril Ramaphosa made these remarks on day two of the AGOA Business Forum currently underway in Johannesburg on Friday.

President Cyril Ramaphosa (centre) attended the AGOA Business Forum in Johannesburg on 3 November 2023. 

Nokukhanya Mntambo & Tshidi Madia | 

03 November 2023 13:46

JOHANNESBURG - President Cyril Ramaphosa has thrown his weight behind calls for an early renewal of the African Growth and Opportunity Act (AGOA) as US trade officials meet with some leaders from the continent.

Ramaphosa made these remarks on day two of the AGOA Business Forum currently underway in Johannesburg on Friday.

The AGOA, which was launched in 2000, gives duty-free access to the lucrative US market for exports from more than 30 qualified African countries.

The US legislation, which has been renewed twice already, is set to expire in 2025.

Trade officials at the forum are locked in deliberations about the future of this agreement, as some call for it to be extended for 20 years.

Though some African countries are said to be in favour of a 10-year extension, Ramaphosa's suggesting that a longer period might be appealing to investors.

"We would like you to look at the extension of renewal of AGOA for a sufficiently lengthy period for it to act as an incentive for investors to build new factories on the African continent. We can do more if this opportunity is extended, and we can build more capacity if we have more certainty that the period of extension will be longer."

'US ALL IN ON AFRICA'

Meanwhile, the United States says it continues to see an opportunity to shape a stronger, new forward-looking vision for US-Africa trade.

These are the sentiments expressed by State representative for Trade, Kathrine Tai, who is attending a three-day African Growth and Opportunities Act Forum at Nasrec.

Tai joined President Ramaphosa in officially opening the summit - they also toured the Made for Africa exhibition that's on display.

She said that her country’s vision was to make a difference through trade agreements in the lives of millions of Africans, however, this has been recently affected the economic fallout from COVID-19, fragile and vulnerable supply chains and a worsening economic crisis.

Tai said that even with these challenges, the US believes that an opportunity to build on its vision for Africa remains a possibility.

"The United States remains a committed partner as Africa continues its journey and as President Biden said at the US-Africa Leaders' Summit last December, the United States is all in on Africa."