mmegi

US keen to renew AGOA but utilisation worries persist

Grinding away: The country’s AGOA exports were previously anchored on textile and garment production. They have since moved to other sectors, such as jewellery
Grinding away: The country’s AGOA exports were previously anchored on textile and garment production. They have since moved to other sectors, such as jewellery

United States president, Joseph Biden’s administration is happy to renew its 23-year old trade deal with African states, but lawmakers who actually ‘hold the pen,’ are concerned about poor utilisation of the agreement, BusinessWeek has learnt.

The African Growth and Opportunities Act, more commonly known as AGOA, is a trade arrangement between the US and more than 30 sub-Saharan African countries, including Botswana. The agreement was established in 2000 and provides relaxed access to the American market for participating African states.

In March, a report by a United States agency, requested by legislators from that country, found that Botswana was among countries with the continent’s lowest exports under AGOA. Botswana’s utilisation rate of the trade arrangement fell from 100% to zero in the last decade, echoing, but considerably worse than, many other countries on the continent.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

Have a Story? Send Us a tip
arrow up