An opportunity to deepen trade and investment between the US and Botswana
AMBASSADOR HOWARD A. VAN VRANKEN* | Wednesday November 8, 2023 13:36
“The United States is all in on Africa,” President Biden affirmed during the U.S.-Africa Leaders’ Summit last December.
Our stories have always been intertwined. Today we know that our success—the success of all our people, on both sides of the Atlantic—is inextricably linked. Our African partners are central to the United States’ approach to driving trade that is accessible, fair, competitive, and resilient. We need to partner together to protect the dignity of all workers and sustainability of our planet -- and pursue a race to the top amongst institutions and enterprises.
The African Growth and Opportunity Act, or AGOA, is a key pillar to realizing this vision for shared prosperity. Since it was signed over two decades ago, AGOA has made a tremendous difference for millions of Africans. By providing duty-free access to the U.S. market for over 6,800 different products, the legislation has helped create jobs and new economic opportunities, including for women and youth. If you manage a business on here in Botswana, I encourage you to see how you might use AGOA to increase your sales, train more employees, and better your community.
AGOA is an example of how we can use trade as a force for good. To maintain eligibility, countries must uphold several values that are core to free and fair societies—rule of law, respect for human rights combatting corruption, and protecting workers’ rights.
In a nutshell, AGOA is intended to be a transformational tool to bolster inclusive prosperity across Sub-Saharan Africa.
Here’s an example of how AGOA has impacted Botswana. As the world’s second-largest diamond producer by carat and top producer by value, Botswana’s duty-free access to the U.S. market for diamonds is bolstering the country’s competitiveness and encouraging reforms that improve the business and investment climate. One company I’ve met that is taking advantage of AGOA is KGK Diamonds, a jewelry manufacturer based in Gaborone. The company undertook its first AGOA eligible export of jewelry back in June of this year and a second in October, with long-term aspirations to tap into the $70 billion U.S. jewelry market.
I want us to find more opportunities for local companies to train Batswana and export high-quality, valuable goods to the United States. Robust trade relationships are the surest way to creating wealth on both sides of the Atlantic and are more impactful and long-lasting than traditional assistance. As President Masisi rightly said during the July U.S.-Africa Business Summit he co-hosted in Gaborone, “AGOA renewal will serve as a catalyst for Africa’s industrialization and inclusion into the global value chains.” We have heard that call for commercial and entrepreneurial partnership and recognize that trade is the key to sustained economic prosperity.
This is why we fully support reauthorizing AGOA, as the benefits of the legislation are set to expire in 2025. The U.S. Congress holds the pen on reauthorization, and we are committed to working closely with Congress throughout the process to ensure this legislation is impactful and relevant.
Policy tools like AGOA are meant to be used, tested, and sharpened over time — which is the driving purpose of the AGOA Forum being held this week in Johannesburg, South Africa.
Every year, the U.S. Trade Representative and trade ministers from every country that participates in AGOA come together to take stock of their work together and find opportunities to do more. This convening is an opportunity to gauge progress to date and perhaps more importantly, discuss if we can improve AGOA to better serve more Africans and Americans.
Not only that, the Forum is a catalyst to convene a broader community. Government officials, civil society and labor leaders, and private sector investors all come together from across the Continent and the United States with a shared goal of using trade to create better opportunities.
This is a valuable moment in Botswana’s economic engagement with the United States, and I look forward to a robust, forward-looking conversation -- at the AGOA Forum and beyond.
*Van Vranken is the United States Ambassador to Botswana