As the US election plays out on global TV screens, the spectre of Donald Trump’s wrecking ball politics once more hovers over the African Growth and Opportunity Act (Agoa), the tariff-free agreement between the United States and several countries on the continent.
But apart from the mutually beneficial arrangements of Agoa, Trump’s ‘America First’ policies pose a distinct threat to economic aid, warns J Brooks Spector, the retired American diplomat who stayed on in Johannesburg after retiring as US Ambassador to South Africa.
He said most of what a potential Trump presidency meant for South Africa was viewed through a transactional lens.
Yet a lot of economic prosperity that has been developed between the two countries is based on US aid to SA, for which Trump might view South Africa as an “ungrateful freeloader”, to borrow a kinder phrase from his diplomatic playbook.
His actual view of trade partners like South Africa, is best left out here for the sake of decency, but it’s well recorded that he holds a dim view of countries like “Nambia” (sic) and Namibia’s neighbours.
Nevertheless, Spector said it was important to consider the non-transactional relationship that South Africa had with Agoa-related economic development initiatives like Prosper Africa.
One product from South Africa that has benefited from Prosper Africa is Rugani Juice.
Established as part of Greenway Farms, which was founded in 1988 by Vito Rugani and Vincent Sequeira, the company has evolved into a leading producer of vegetable juices, particularly known for its 100% carrot juice.
Its export success story is very much rooted in agricultural innovation and market expansion – and Agoa – with the folks from Prosper Africa putting in the hard yards.
At the recent Agoa Forum in Johannesburg, British Robinson, the coordinator of Prosper Africa, highlighted Rugani as a prime example of how Agoa could facilitate trade and investment between the United States and African businesses.
Rugani Juice received support from Prosper Africa that enabled them to prepare for entry into the US market, including participation in trade shows and securing a distribution agreement worth $500,000 with a vetted US distributor.
Prosper Africa's involvement has not only helped Rugani Juice access US markets but also fostered a broader trade ecosystem in Gauteng province.
The likelihood of such aid being compromised by a new administration on Capitol Hill, said Spector, was greater under a Trump presidency than if Kamala Harris kept the Democratic Party in power.
