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US pushes for new ‘green’ AGOA deal

Confident: Kgafela says Botswana is supremely placed to benefit the most in the revised AGOA. Government is working with the US to better prepare local businesses for the trade deal 
PIC: MBONGENI MGUNI
Confident: Kgafela says Botswana is supremely placed to benefit the most in the revised AGOA. Government is working with the US to better prepare local businesses for the trade deal PIC: MBONGENI MGUNI

The new African Growth and Opportunities (AGOA) trade deal between Africa and the United States is expected to feature stricter requirements for climate sensitive production and sourcing, a demand that could weigh on business volumes from some countries.

BusinessWeek has learnt that on top of the existing tight protocols on governance required of African governments to remain as AGOA beneficiaries, the US also wants more adherence to Environment, Social and Governance (ESG) standards from the African corporates wanting to do business with the world’s richest market.

AGOA, which provides preferential trade access to the US for participating African countries, expires in 2025 and is currently undergoing talks towards renewal. At the US Africa Leaders’ Summit held in Washington D.C. last month, senior US government representatives, including members of Congress held high level talks with senior officials from more than 40 African governments on laying the ground rules for renewal.

Editor's Comment
Consult, get buy-ins first for 6 to 6 policy, Hon Minister

While the minister is of the view that the proposal would have significant positive economic impact, the entertainment industry players believe otherwise. The issue has over the weeks become a hot potato. But what is of essence right now is that the country needs liberal ideas to move in the right direction While opening up the economy may sound quite interesting to the ear, rolling out extended trading hours through pilot programmes without...

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