The Deputy Minister of Trade and Industry, Elizabeth Thabethe has called on Sub-Saharan Africa countries not to weaken the spirit of the African Growth and Opportunity Act (AGOA). She was speaking at the ministerial dialogue of the 12th United States-Sub-Saharan Africa Trade and Economic Cooperation Forum that is held in Addis Ababa Ethiopia.
The 12th annual African Growth and Opportunity Act (AGOA) Forum is held with the theme “Sustainable Transformation through Trade and Technology,” bringing together senior U.S administration officials, African government ministers as well as U.S. and African business and civil society stakeholders.
Thabethe said that the African Growth and Opportunity Act (AGOA) is the only legal framework between the Sub-Saharan Africa and the Unites States and it has generated enormous goodwill between African countries and the Unites States of America. She added that all partners should do nothing that will weaken this.
“In the first instance this means we are united in our call for a seamless extension of AGOA to all beneficiary countries beyond 2015 for a period of 15 years. We need an extension for a minimum of 15 years to ensure certainty and predictability for traders and for creating the certainty needed for increased inwards investment,” she said.
The Deputy Minister also told the meeting that South Africa support the extension of the 3rd country fabric provision to all AGOA-eligible countries and its alignment with the AGOA term. Deputy Minister Thabethe highlighted that the African continent need the US investments to help further diversify the economy.
“Our analysis shows that US investment in Africa leads to US exports. That is, US investors tend to import 50% of their inputs from the US, hence helping to create jobs in the US and increase exports. This supports the objective of the US National Export Strategy,” stated Thabethe.
She says that Sub-Saharan Africa is speaking with one voice, that the AGOA be extended at least by September 2014 and called on the US Congress to make an early decision to avoid uncertainty. The Minister’s meeting also endorsed the report of the senior officials meeting that was held on Saturday in preparations of today’s meeting. Tomorrow the Sub-Saharan Africa Ministers will meet with the Americans.
During the US President’s visit to South Africa in June this year, President Barack Obama indicated that he is committed to a seamless extension of AGOA beyond 2015. However, the US senate is the one to decide.
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