New strategy seen boosting AGOA exports
Isaac Pinielo | Tuesday November 8, 2016 18:00
The majority of local businesses have always failed to reap the benefits of AGOA, which is a US Trade Act that enhances market access to the US for qualifying sub-Saharan African countries.
According to the deputy permanent secretary in the ministry of investment, trade and industry, Ontlametse Ward despite the market access opportunity for goods and services granted under AGOA, Botswana’s exports remain undiversified. Addressing delegates yesterday at the validation workshop of the draft AGOA national response strategy in Gaborone, she said this impacts negatively on the export sector and growth of the country.
“The strategy reflects ∆what Botswana wishes to achieve in improving the country’s economic growth through increased trade, expanding Botswana’s capacity in business and improving trade relations with the US and other international markets,” said Ward.
She added that the response strategy was not developed in isolation, noting that it takes into account other strategies and policies currently in place. “The strategy is therefore aligned to the economic agenda of Botswana as well as the Sustainable Development Goals (SDGs), which both speak to issues of poverty eradication and reduction of inequality, employment creation, diversified export-led economic growth and strengthening human development,” she said.
When presenting feedback from the 2016 AGOA forum, Gideon Mmolawa, deputy director in the department of industrial affairs, said this year’s forum was focusing on issues such as the future of US-Africa trade, bolstering investment in Africa, enhancing infrastructure development and regional integration, addressing technical barriers to trade and capacity building.
The forum followed a year after the new AGOA legislation of June 2015, which extended AGOA for a further 10 years (2015 to 2025). “The forum recognised that the renewal of AGOA for another 10 years offers an opportunity to reflect and take stock of the gains realised, the challenges encountered and the opportunities that lie ahead,” Mmolawa said.
Although AGOA has promoted and increased trade and investment through the reduction of tariffs and the facilitation of investments, he said it is also equally acknowledged that little has been done to address the other fundamental goals it set out to achieve.
He said the forum also recognised that while AGOA was intended to promote stable and sustainable economic growth and development in sub-Saharan Africa, it has become imperative that this goal cannot be achieved without full respect for the internationally recognised worker rights, hence the emphasis for collaboration between labour and trade institutions or organisations. “In this regard, it was emphasised that strict adherence to international labour standards should be integral to all AGOA driven investments and business practices, with the intent to promote sustainable, ethical sourcing locations that will be equally attractive when AGOA expires,” he said.
Although Botswana companies are eligible to supply goods from eight sub-sectors that include agriculture, machinery, minerals, metals, forestry, transport and electronic products, only two companies in the textile and garment manufacturing industry remain active participants in the AGOA programme.