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Tackling payment challenges in South Africa’s trade industry through innovative payment solutions (ITWeb Africa)
Ola Oyetayo, CEO of Verto, says despite the trade industry’s critical nature for the prosperity of the country, illicit dealings in South Africa’s import and export sector have resulted in economic losses of as much as R100 billion annually, and R250 million every day in terms of lost tax revenue
“From smuggling and the misdeclaration of goods to under-invoicing to evade customs duties and taxes, these practices contribute to significant revenue losses for the government, distort market competition, and pose risks to national security and consumer safety by allowing unregulated goods into the market.” To combat this, the South African Revenue Service (SARS) has implemented stricter customs regulations and monitoring systems, such as the advance payment notification (APN) requirement in December 2023 for import payments. Here, the regulatory change will affect import payments of R50,000 and above, requiring importers to notify SARS via eFiling before making such payments.
While this aims to improve tracking and customs efficiency, it adds complexity for importers, who might need additional support to mitigate the many challenges seen across the industry. “Logistics and transportation issues that further complicate the process; the risk of damaged or lost goods during transit which can incur additional costs and erode trust with suppliers and customers; and the intricacies of international payment methods and associated fees are just of few of the many financial challenges that importers and exporters need to overcome to be successful,” says Oyetayo.
South Africa revival needs reform jumpstart, business lobby says (Engineering News)
South Africa‘s new multi-party administration must prioritise reviving State-run port, water and power networks and work to automate processes to attract investment and boost lagging growth, Business Leadership South Africa CEO Busisiwe Mavuso said. President Cyril Ramaphosa of the African National Congress (ANC) put together a government of national unity after a May 29 election failed to produce an outright winner. Some voters opted for other parties after 30 years of ANC-majority rule ended in rolling power cuts and logistics snarl-ups, an economy that has barely grown over the past decade, a jobless rate of 33%, endemic crime, and corruption.
While South Africa is “failing at the basics” and has missed opportunities to position itself as a viable destination for companies in free-market democracies to move their supply chains away from authoritarian regimes such as China, foundations laid in the prior administration are a positive signal that the trajectory is set to improve, she said.
To ensure South Africa‘s growth trajectory is bolstered, the nation needs to address the backlog in visas by introducing more automated processes, have more of its biggest ports — ranked among the world’s worst performers — run privately, move more goods by rail rather than trucks, and scrap the NHI, Mavuso said. It also needs to streamline regulations for public-private partnerships to make them less complex, which the National Treasury has proposed.
Uganda’s gold trade drives import relationship with Tanzania (Business Insider Africa)
Uganda’s Ministry of Finance recently revealed that the country buys more goods from Tanzania than any other East African nation. The Ministry’s Performance of the Economy report for June showed that, in the 12 months leading to May, 83% of all products Uganda sourced from the EAC came from Tanzania. This amounted to a Shs1.6 trillion out of the Shs1.9 trillion sourced from imports within the EAC. As seen in the Ugandan newspaper, The Monitor, the trade with Tanzania results from a sustained increase in the import of gold and rice.
For some time, Kenya stood as Uganda’s number one import destination from the EAC, up until 2021, when the trade dynamics within the sub-region began to shift. While the report failed to specify how much gold Tanzania traded with Uganda during the period under review, the Bank of Uganda revealed that the country imported mineral products, 90% of which were gold worth $2.7 billion. Uganda sometimes imports gold from Zimbabwe and the Democratic Republic of Congo, after which it is refined and exported.
Ambassador Richard Kabonero, Uganda National Coordinator for the Northern Corridor Integrated Projects (NCIPs), delivered impactful addresses at the ongoing Single Customs Territory (SCT) and Immigration, Tourism, Trade and Services (ITTLS) Cluster meetings, underway from July 25-26, 2024 in Kigali. In his remarks, at the SCT cluster meeting, Ambassador Kabonero commended the Republic of Rwanda on the successful conclusion of the recent Presidential elections. Emphasizing the critical importance of eliminating trade barriers and enhancing infrastructure to facilitate smoother regional trade within the Northern Corridor, Kabonero acknowledged Rwanda’s leadership in convening the meetings, underscoring the significant progress made under various projects such as the Standard Gauge Railway and ICT Infrastructure Development
Transitioning to the ITTLS Cluster, Ambassador Kabonero reaffirmed Uganda’s unwavering commitment to the NCIPs. He unpacked the cluster’s directives aimed at bolstering regional integration through improved trade, immigration, tourism, and labor services. Emphasizing the urgency of implementing these directives, he highlighted their potential to yield substantial economic benefits for all member states.
Assuring of continued collaboration among Kenya, Rwanda, and Uganda in advancing these pivotal regional projects in regional integration Amb. Kabonero said it was important for all the Partner states to remain steadfast. “In our pursuit of regional integration and economic transformation through the NCIPs, Uganda remains steadfast in fostering collaboration and eliminating barriers to trade. Together with our regional partners, we are committed to realizing tangible benefits that will uplift the livelihoods of our people,” he said
Zimbabwe: 651 Firms Get Permits to Import 3.2m Tonnes Maize (The Herald)
The Government has issued 651 import permits to private companies to procure at least 3,2 million tonnes of maize as part of drought mitigation measures. This is well above the country’s annual requirement of 2,2 million tonnes of maize.
Speaking after yesterday’s Cabinet meeting, Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka said partnerships with the private sector were critical to boost food security. “We have allowed the private sector to import as much as possible during this period to March next year so that they can supply appropriately priced, affordable and available mealie meal. “We have also encouraged the business sector not to take advantage of the situation to charge high prices.
Malawi Economic Monitor Calls for Urgent and Sustained Reforms for Faster and More Inclusive Growth (World Bank)
Malawi’s current economic difficulties require a combination of immediate response measures and urgent reforms to address longstanding macroeconomic imbalances including persistent and large fiscal deficits, balance-of-payments challenges, unsustainable debt, and price instability, which have weighed on the country’s economy in recent years, according to the latest World Bank Malawi Economic Monitor (MEM).
The MEM provides a semi-annual analysis of Malawi’s economic and structural development issues, and this 19th edition, entitled The Urgency of Reforms: Malawi’s Path to Economic Stability reveals that Malawi is set to have the weakest macroeconomic fundamentals among its neighbors, with minimal improvement in living standards in recent years. The World Bank’s economic growth projection for 2024 has been revised downwards to 2.0 percent, which is lower than the 2.6 percent population growth. GDP growth, therefore, is expected to decline in per capita terms. Moreover, the El Niño-induced drought in January and February worsened the near-term growth outlook. Given the grain deficit in the country, shortage of food stocks within the region, and little recent progress in expanding irrigated maize production, increased grain imports are urgently needed.
Boosting domestic production, FDI and trade balance for Ethiopia’s economic growth (Ethiopian Press Agency)
It is common knowledge that economic experts place emphasis on the need to augment domestic production, exports, foreign direct investment (FDI) and other related aspects to help the country make trade balance certain in the shortest possible time. With regard to boosting production, attracting production and ensuring trade balance, and other things of a similar kind, pertinent bodies have been working around the clock to make the impossible possible and the unthinkable thinkable.
In the present climate, the federal government has been moving heaven and earth to take the country’s economy to the next level of accomplishment by effectuating a wide spectrum of fruitful strategies. It is true that in this day and age, the country has been putting into effect local resources to produce fertilizers domestically with the intention of achieving economic rewards and alleviate foreign exchange matters at the earliest possible time.
FG Targets More Investments As ITU Ranks Nigeria High In Digital Transformation (The Whistler Newspaper)
The International Telecommunication Union (ITU) has ranked Nigeria 91 per cent on regulatory capacity towards an advanced state of readiness for digital transformation known as G5. The Advanced State of Readiness is benchmarked against four critical levels of accomplishments which include national collaborative governance, policy design principles, digital development toolbox, digital economic policy agenda.
According to the latest ranking, Nigeria scored 91 per cent in regulatory capacity; 82 per cent in Market Rules; 81 per cent in Collaborative Governance; 76 per cent in Legal Instruments for ICT/Telecom markets; 69 per cent in National Digital Agenda Policy, among other benchmarks. According to the Nigerian Communications Commission (NCC), Germany, Finland and Singapore led the global chart.
The report titled, ‘Collaborative Regulation: Accelerating Nigeria’s Digital Transformation’, ranked Nigeria among Africa’s top seven BEMECS 5G Readiness Index. This represents the country’s readiness to deploy and adopt mass-market 5G networks.
More on Nigeria:
Import tax waiver on food items: Good move, but… (Daily Trust)
A detailed review of the newly unveiled 2024 National Digital Economy and E-Governance Act (Technext)
Step-Down Agenda Must Drive Positive Change - Bosun (Science Nigeria)
History made as Africa’s Tripartite FTA comes into force (APAnews)
The COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) Agreement officially came into force on Thursday following ratification by the requisite number of member states. The agreement required at least 14 out of the 29 countries in the region made up of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and Southern African Development Community (SADC) to deposit their instruments of ratification before taking effect.
According to SADC Executive Secretary Elias Magosi, the milestone was achieved when Angola deposited its instrument of ratification on June 25. He said other countries that have so far ratified the agreement are Botswana, Burundi, Egypt, Eswatini, Kenya, Lesotho, Malawi, Namibia, Rwanda, South Africa, Uganda, Zambia and Zimbabwe. He highlighted that these countries collectively accounted for 75 percent of the Tripartite GDP in 2022.
This development was announced during the 37th Tripartite Task Force Meeting on July 20, held on the sidelines of the 6th African Union Mid-Year Coordination Meeting in Accra, Ghana.
The enlarged market aims to promote the smooth movement of goods and services across borders, as well as allowing member countries to harmonise regional trade policies to promote equal competition. The harmonisation of trade policies, and removal of non-tariff barriers and other trade barriers such as huge export and import fees would enable countries to increase their earnings, penetrate new markets and contribute towards their national development.
Visit tralac’s Tripartite FTA Resources page
Tanzania explains reasons for delay in tripartite free trade area ratification (The Citizen)
The government has explained why it is yet to ratify a regional trade agreement that came into force yesterday, saying it’s completing domestic legal procedures. The Comesa-EAC-Sadc Tripartite Free Trade Area (TFTA) agreement commenced on July 25, 2024, with 14 out of the 29 member states endorsing it. On Wednesday, the East African Community (EAC) announced that the agreement would come into force following the attainment of the required 14-member threshold.
Tanzania is among the countries that have not yet deposited their instruments of ratification, with the government saying efforts are being made to complete the government process to ratify the convention as early as possible. Deputy minister for Industry and Trade, Mr Exaud Kigahe, told The Citizen that the agreements are pillars that provide benefits to Tanzania by expanding the markets for goods and services, developing industries, and collaborating on the construction of infrastructure to facilitate business.
“Due to the importance of the agreement, our country continues to complete the domestic procedures to ratify the agreement according to the requirements of our constitution, and this issue involves both sides of the union,” said Mr Kigahe. According to him, while the internal process is ongoing, the ministry, in collaboration with stakeholders, continues to educate traders so they can take advantage of the opportunities in the profitable markets that promote trade. However, Mr Kigahe admitted that more awareness is still needed as the number of Tanzanians participating in the regional markets is still low compared to other countries such as Kenya.
“We continue to urge traders to meet with our institutions that deal with quality issues and permits so they can be informed about the conditions to consider before starting to sell in these markets, as they have specific requirements and high competition,” he said.
SADC to host the 7th annual Industrialisation Week (SADC)
The SADC Secretariat in partnership with the government of the Republic of Zimbabwe, the SADC Business Council and the Confederation of Zimbabwe Industries (CZI), will host the 7th Annual SADC Industrialisation Week (SIW) from 28th July to 2nd August 2024 in Harare, Zimbabwe. The event will be held at the Harare International Conference Centre, under the theme “Promoting Innovation to Unlock Opportunities for Sustainable Economic Growth and Development Towards an Industrialised SADC.”
The SADC Industrialisation Week is the largest public-private platform and consultative body for industrialisation in the SADC region. It provides a platform on annual basis for SADC Member States, the private sector, international partners, policymakers, researchers, SMEs, financial institutions, and civil society to share experiences on driving industrialisation and economic transformation in the region.
The week-long event will feature seminars, meetings, workshops, a gala dinner, exhibitions, and site visits to some selected manufacturing facilities and industrial hubs in Zimbabwe. The key focus areas include mineral beneficiation, agro-processing, pharmaceuticals, infrastructure development, women and youth entrepreneurship, and African Continental Free Trade Area (AfCFTA) enterprises.
AfDB’s US$650m rice development program to enhance food security in West Africa (The Business & Financial Times)
The African Development Bank is launching a US$650 million Regional West Africa Rice Development program in collaboration with the Africa Rice Center with the primary objective to enhance food security in West Africa. The president of the African Development Bank Group, Dr. Akinwumi Adesina who announced this emphasised that the initiative is expected to include one million farmers across 15 countries and produce 53 million tons of rice.
“In five years, West Africa will achieve self-sufficiency in rice. We know we can do it. Our work helped Ethiopia to become self-sufficient in wheat in under four years, turning it into a net wheat-exporting country. What is critical is strong political will,” the Bank Group head said, referencing the Bank’s flagship Technologies for African Agricultural Transformation (TAAT) program. Dr. Akinwumi Adesina, outlined the Bank’s successes in mobilizing financial resources for the continent’s development needs at the African Union
Africa offers $193bn renewables opportunity, study shows (Engineering News)
Sub-Saharan Africa offers a $193-billion opportunity to invest in renewable energy and transmission by 2031, with returns a multiple of those in Europe and the US, according to a new study.
Utility-scale wind, solar, storage and transmission projects across a number of African countries may yield an internal rate of return of 15% to 21%, significantly above the cost of capital and yields on sovereign bonds, the study compiled by Wood Mackenzie showed. Returns in the US and Europe are a little more than 5%.
“Africa represents a significantly underserved market,” the researchers wrote in the study that UK government agency MOBILIST and South Africa‘s Revego Fund Managers sponsored. “Renewable-energy assets across the region also tend to be at earlier stages of development, offering growth upside.”
Africa-Americas Dialogue on the Global Compact for Safe, Orderly and Regular Migration (IOM)
The United Nations Network on Migration for West and Central Africa, co-chaired by the International Organization for Migration (IOM) and the Office of the High Commissioner on Human Rights (OHCHR), in coordination with the Government of The Gambia, hosted an interregional dialogue on the implementation of the Global Compact for Safe, Orderly and Regular Migration (GCM) in Africa and the Americas. “It is key to work together to harness the benefits of safe, orderly and regular migration, contributing not only to the objectives of the GCM but also to the Sustainable Development Goals,” said Kristina Mejo, IOM Senior Regional Liaison and Policy Advisor for West and Central Africa.
Fighting inequality at the heart of the international agenda: President Lula calls on the world to take part in the Global Alliance Against Hunger and Poverty (G20 Brasil 2024)
Fighting inequality at the heart of the international agenda: President Lula calls on the world to take part in the Global Alliance Against Hunger and Poverty. The historical moment marks a decisive step in Brasil’s G20 presidency. Member countries and international organizations approved the documents, creating the Alliance by acclamation
In a powerful speech, President Lula stressed the historic importance of this moment: “Participating in this ministerial meeting of the Task Force, which lays the foundations for the Alliance against Hunger and Poverty, is one of the most important moments of the 18 months of my third term.” The Brazilian president emphasized the urgency of putting hunger and poverty at the heart of the international agenda. “Nothing is as absurd and unacceptable as the persistence of hunger and poverty when we have so much abundance at our disposal, so many scientific and technological resources, and the artificial intelligence revolution,” stated the Brazilian president.
Lula also criticized the inequality exacerbated by globalization. “Never have so many had so little and so few concentrated so much wealth. Hunger is the most degrading of human deprivations. It is an attack on life, an assault on freedom,” he denounced.
The Global Alliance against Hunger and Poverty will coordinate international actions and partnerships to implement effective programs to fight hunger and poverty worldwide. The initiative unites the two traditional tracks of Sherpas and Finance in the same direction. According to President Lula, “The Global Alliance was born out of this political will and spirit of solidarity. It will be one of the main results of Brasil’s G20 presidency. Its goal is to give renewed impetus to existing initiatives by aligning efforts at domestic and international level.”
The Global Alliance against Hunger and Poverty is expected to be officially launched in November 2024, during the G20 Leaders’ Summit, also in Rio de Janeiro. The initiative seeks to raise resources and knowledge to implement effective public policies and social technologies to reduce hunger and poverty globally. It is open to all interested countries, not only to G20 members.
pdf Global Alliance against Hunger and Poverty: Foundational Documents, July 2024 (1.97 MB)
Hunger numbers stubbornly high for three consecutive years as global crises deepen: UN report (FAO)
Around 733 million people faced hunger in 2023, equivalent to one in eleven people globally and one in five in Africa, according to the latest State of Food Security and Nutrition in the World (SOFI) report published today by five United Nations specialized agencies. The annual report, launched this year in the context of the G20 Global Alliance against Hunger and Poverty Task Force Ministerial Meeting in Brazil, warns that the world is falling significantly short of achieving Sustainable Development Goal (SDG) 2, Zero Hunger, by 2030. The report shows that the world has been set back 15 years, with levels of undernourishment comparable to those in 2008-2009.
Despite some progress in specific areas such as stunting and exclusive breastfeeding, an alarming number of people continue to face food insecurity and malnutrition as global hunger levels have plateaued for three consecutive years, with between 713 and 757 million people undernourished in 2023—approximately 152 million more than in 2019 when considering the mid-range (733 million).
Regional trends vary significantly: the percentage of the population facing hunger continues to rise in Africa (20.4 percent), remains stable in Asia (8.1 percent)—though still representing a significant challenge as the region is home to more than half of those facing hunger worldwide —and shows progress in Latin America (6.2 percent). From 2022 to 2023, hunger increased in Western Asia, the Caribbean, and most African subregions. If current trends continue, about 582 million people will be chronically undernourished in 2030, half of them in Africa
The report highlights that access to adequate food remains elusive for billions. In 2023, around 2.33 billion people globally faced moderate or severe food insecurity, a number that has not changed significantly since the sharp upturn in 2020, amid the COVID-19 pandemic. Among those, over 864 million people experienced severe food insecurity, going without food for an entire day or more at times. This number has remained stubbornly high since 2020 and while Latin America shows improvement, broader challenges persist, especially in Africa where 58 percent of the population is moderately or severely food insecure.
FAO Director-General welcomes plan for Global Alliance against Hunger and Poverty (FAO)
QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), today commended the President of Brazil, Luiz Inacio Lula da Silva, for bringing food security to the center of the G20 agenda and mobilizing global support to fight hunger through the unveiling of the Global Alliance against Hunger and Poverty. Qu accompanied President Lula in the G20 Global Alliance against Hunger and Poverty Task Force Ministerial Meeting, in Rio de Janeiro, which officially announced the new global initiative.
“The Alliance will enable large-scale country-owned and country-led implementation of evidence-based policy instruments to eradicate hunger and poverty through its national, knowledge and financial pillars,” the Director-General said, adding that FAO is committed to supporting its effective implementation and to hosting the support mechanism at its headquarters in Rome. “It will be key to bringing knowledge, expertise and success stories to the parts of the world where it is needed the most,” he added.
More on the G20:
Lula: “Global Alliance Against Hunger and Poverty is the main theme of the G20” (G20 Brasil 2024)
The World Falls Behind Goal to End Hunger (Wall Street Journal)
G20 leaders need a bold new approach to risk (Strategic Risk Global)
World Bank Group Ramps Up Fight Against Global Hunger (World Bank)
Brazil, at G20-COP28 event, joins Global Climate Finance Framework to align climate investment and drive socio-economic development (The Manila Times)
At a joint G20-COP28 event on sustainable finance, Brazil today endorsed the UAE Declaration of Leaders on a Global Climate Finance Framework, launched by key world leaders at COP28, building momentum towards the Framework’s goal of developing a new climate finance architecture that unlocks the investment opportunity of climate action. The endorsement from Brazil, which will also host COP30 in 2025, provides a vital link between the agendas of the COP Presidencies and the G20, to make sustainable finance more available, accessible and affordable.
Minister of Finance Fernando Haddad announced the endorsement in Rio de Janeiro today, on the sidelines of the G20 Finance Ministers and Central Bank Governors meetings, as Brazil became the sixth G20 country to endorse the Framework alongside France, Germany, the United Kingdom, the United States, and India. To date, 15 countries representing a significant share of global GDP have joined the Framework as signatories.
“To deliver on the climate ambitions set out in the UAE Consensus, we need all sources of finance - public, private and philanthropic,” His Excellency Mohamed Al Hussaini, UAE Minister of State for Financial Affairs, said. “Climate investments must be recognized as an unprecedented opportunity for economic growth and shared prosperity, and the COP28 Global Climate Finance Framework places finance ministries in a leading role to drive this forward. The UAE stands ready to address the sustainable finance gap with concrete action.
pdf COP28: The UAE Consensus (6.22 MB)
‘G20 summit must not overlook Africa’s challenges’ (The Sunday Mail)
Chinese ambassador to South Africa, Wu Peng, says the African Union’s (AU) role in the G20 will enhance the relationship between the group and Africa. Last year, the 20 industrialised countries adopted a resolution to include the AU as its newest member
In an exclusive interview with SABC News, Peng called on the G20 summit not to overlook the challenges that Africa is facing. “China has always worked to accommodate Africa’s aspiration in the G20. We worked vigorously for the African Unions for G20 membership,” he said. “We know South Africa will host the G20 summit next year. China will fully support South Africa in hosting the summit and we will support your push to the international community, the G20. African issues should not be put aside, ignored, because it’s very important for the world’s peace and development.”
The heat is on: We must rise to the challenge of rising temperatures, urges UN chief (UN News)
The UN chief on Thursday issued an urgent call to action to better protect billions around the world exposed to crippling effects of extreme heat, as global temperature rise continues unabated. The appeal comes against the backdrop of record temperatures and deadly heatwaves – from the United States to Africa’s Sahel and Europe to the Middle East – that have killed several hundred people this summer. During the Hajj, for instance, scorching heat claimed over 1,300 pilgrim lives.
“Billions of people are facing an extreme heat epidemic – wilting under increasingly deadly heatwaves, with temperatures topping 50 degrees Celsius around the world. That is 122 degrees Fahrenheit – halfway to boiling,” Secretary-General António Guterres said at a press conference at UN Headquarters in New York. “The message is clear: the heat is on. Extreme heat is having an extreme impact on people and planet. The world must rise to the challenge of rising temperatures.”
After Two Votes, HLPF Ministerial Declaration Recommits to 2030 Agenda (SDG Knowledge Hub)
“Deep and formative tensions associated with the geopolitical and economic challenges confronting the multilateral system were a recurring theme at the 2024 session of the High-level Political Forum on Sustainable Development (HLPF).” This is the opening sentence of the Earth Negotiations Bulletin (ENB) summary report of the meeting, which notes that two contested paragraphs of the Ministerial Declaration – the HLPF’s outcome document – were put to a vote as a result.
One paragraph recognized that sustainable development cannot be realized without peace and security. The other, newly proposed paragraph drew attention to the impact of unilateral coercive measures (economic sanctions) on poverty and food security, among other SDGs.
AGOA Forum updates
South African Trade Minister Parks Tau urges US to extend Agoa to help Africa industrialise (Daily Maverick)
New Trade, Industry and Competition Minister Parks Tau has called for an extension of the US African Growth and Opportunity Act (Agoa) when it expires next year to provide long-term certainty to investors in Africa and to traders between the continent and the US. He was speaking at the annual Agoa Forum, which this year is being held in Washington, DC, to chart the course forward for Agoa.
Tau said by providing long-term certainty to investors and traders, extending Agoa and its duty-free access to the US market would also help African countries to plan ahead and industrialise. “In many ways, African countries are demonstrating increased improvement in the levels of value chain integration, but the reality is that value chain integration is happening at the primary level. “The opportunity currently provided is for us to upgrade the level of integration and to get to manufactured goods and value chain integration at a much more secondary level,” said the minister.
He told the forum it was important to see Agoa and the African Continental Free Trade Area (AfCFTA) as complementary “and as functioning in a way that Agoa could supplement the initiatives of the free trade area”. Tau said Agoa was increasing opportunities for African countries to increase their own capital investments as well as to attract foreign investment. He said the increased access to African markets, which SA manufactured goods were enjoying, also because of the AfCFTA, made SA a more attractive investment destination.
The threat to end SA’s Agoa trade privileges has emanated largely from Republican members of Congress who believe Pretoria’s warm relations with Russia, China and Iran undermine US national security and foreign policy interests.
US Secretary of State Antony Blinken told the forum that Biden and the entire US government fully supported the reauthorising of Agoa when it came up for renewal next year and would continue working with Congress to make that happen.
“We’re also focused on modernising Agoa to reflect how our countries and our economies and international markets have evolved since the law was first passed [in 2000]. We see value in an Agoa that is agile, that’s adaptable, that’s capable of driving trade forward in a dynamic environment,” said Blinken.
Albert Muchanga, the African Union commissioner for economic development, tourism, trade and mining, said Africa was working towards integrating the continent, not only through the AfCFTA, which was now in its third year, but other measures such as creating a single air industry market, harmonising labour, education and medicine authorisation standards and building regional infrastructure such as the Lobito Corridor connecting Angola to the Democratic Republic of the Congo and Zambia.
“Investing in the African Continental Free Trade Area also opens up opportunities for US business to export to the US using preferences in Agoa and, in the process, contributing to deeper trade and investment ties between Africa and the United States of America.” Muchanga said Africa was looking forward to an early and long-term reauthorisation of Agoa. He asked the forum to include in its outcome document a list of measures it would like African policymakers to work on to make the continent a more attractive investment destination.
Eckart Naumann, an independent economist and associate of the Trade Law Centre in Stellenbosch, told the forum that as a result of Agoa there were virtually no more import tariff barriers for African goods entering the US but many other barriers remained to be navigated, especially around technical, sanitary and phytosanitary standards. He said African businesses needed help in navigating these non-tariff barriers. He added that although the total dollar amount of goods exported to the US under Agoa was not huge, it was important to individual businesses and some industries.
Backgrounder: AGOA: The U.S.-Africa Trade Program (Council on Foreign Relations)
New Dem Trade and Economic Task Forces Support Reauthorization of AGOA (New Democratic Coalition)
Agoa – the die is cast if Harris (or any other candidate) is ‘trumped’ (Freight News)
Visit tralac’s 2024 AGOA Forum Resources page
Quick links
Doing business in Africa requires a different approach (WEF)
WTO issues new edition of World Tariff Profiles (WTO)
Luxury Brands Need Better Due Diligence Across Their Value Chains (Yahoo)
Breathing new life into the SDGs: What is the UN’s Summit of the Future in 2024? (WEF)
Plastics Dialogue coordinators identify points of focus for future work (WTO)
