Johnathan Paoli
The African Growth and Opportunity Act (AGOA) business forum kicked off at Nasrec on Thursday morning, as delegates from 40 sub-Saharan African countries are expected to discuss the strengthening of relations between the US and the continent.
The forum will be held under the theme: “Partnering to Build a Resilient, Sustainable, and Inclusive Agoa to Support Economic Development, Industrialisation and Quality Job Creation”.
This is the third time the forum has been hosted in the southern region of the continent, after Zambia in 2011 and Mauritius in 2003.
Trade and Industry Minister Ebrahim Patel said the forum was an opportunity to highlight the importance of South Africa’s relationship with the United States.
“It’s an important opportunity for us to get the support of the American labour for the continuation and renewal of AGOA,” Patel said.
Over 30 countries currently benefit from duty-free access to the US market, especially for the agriculture and manufacturing industries.
Addressing trade ministries from participating African countries, the Commissioner for Trade and Industry of the African Union Commission, Albert Muchanga said the extension of the Agoa would generate certainty and encourage investments.
“We are going to be a source of labour. We are going to be a major global consumption hub, and any serious investor will not overlook Africa,” Muchanga said.
US Senator John Kennedy introduced the Agoa Extension Act of 2023 bill to the American Congress last month with the intention of extending the programme for 20 years to 2045.
Earlier this week, the US announced that it was cutting the Central African Republic, Gabon, Niger and Uganda from the trade pact from January 2024 over concerns about coups, democracy and human rights; whilst Mauritania has been reinstated to the pact after it was suspended in 2019 due to concerns over workers’ rights.
Trade under the pact accounts for 21% of South Africa’s annual exports to the United States, which range from automotive products to raw materials and in 2022 were worth about $3 billion.
On Friday President Cyril Ramaphosa will deliver the keynote address and officially open the forum.
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