The issues surrounding the renewal of the African Growth and Opportunity Act (Agoa) were resolved some months back, and South Africa now enjoys continued preferential access to the US market until 2025. But according to Xolelwa Mlumbi-Peter, deputy director-general of the Department of Trade and Industry (dti), the agreement is under utilised by South Africa and other African countries.
Mlumbi-Peter recently claimed that the continent lacked the energy and transport infrastructure, and thereby the production capacity, to take full advantage of the benefits of Agoa. It also faced critical issues such as sanitary and phytosanitary measures (SPS).
Carol O’Brien, executive director of the American Chamber of Commerce in South Africa, has also observed a lack of uptake. “Very few people know that Agoa covers 6 000 product lines and entitles you to export to the biggest market in the world, duty free. I recommend that Chambers of Commerce and other organisations make it known to their members that this opportunity is available. We currently export more than R20bn per year to the US under Agoa and the main products are BMWs, nuts, and citrus.”
Sidwell Medupe, departmental dpokesperson for the Department of Trade & Industry (dti), reports that South Africa’s total exports to the US registered R41bn in the first six months of this year, while US exports to South Africa amounted to R37bn. South African exports under Agoa for the period grew by 40%, from US$641 000 in January - June 2015, to US$895 000 in 2016.
According to Mlumbi-Peter, Agoa has thus far been responsible for the creation of 62 000 jobs in South Africa.
