US trade officials worried AGOA remains underutilised by sub-Saharan Africa beneficiaries

JOHANNESBURG - Almost 25 years since it was first launched, United States (US) trade officials are worried that the Africa Growth and Opportunity Act (AGOA) remains underutilised by beneficiaries in sub-Saharan Africa.

The US flagship trade programme with Africa grants exports from qualifying African countries duty-free access to the US, the world’s largest consumer market.

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Despite AGOA's potential, many African countries are still struggling to leverage the legislation in the absence of domestic policies to support its uptake.

Assistant US trade representative for Africa Connie Hamilton said more needs to be done to enhance trade with the least developed economies.

“So, one of the things we hope will happen is that as Congress is thinking about how to modernise this programme, new rules and new mechanisms are put in place that will help the utilisation of AGOA. It’s not just on our side, but things that they may request the countries to do is to improve their own utilisation of the programme.”