Textiles anchors 53% jump in AGOA exports
Tuesday, January 27, 2015
Textiles contributed 87 percent of AGOA exports last year
According to the statistics from US Department of Commerce, exports to US under AGOA increased 53 percent from $5.5 million (P52 million) to $8.5 million (P80 million) in the first 11 months of the year, mainly on the back of increase in textile and apparel.
In the period, total exports to the US, which were dominated by mostly diamonds, increased 16 percent from $246.3 million to $286.4 million. While Botswana is empowered to export 6,500 products under AGOA, textiles have benefited the most, being easy to establish with a relatively low cost of labour.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...