APA-Johannesburg (South Africa) Africa values the trade relationship it has had with the United States over the past two decades under the African Growth and Opportunity Act (AGOA), South African President Cyril Ramaphosa has said.
Opening the 20th AGOA Forum in Johannesburg on Friday, Ramaphosa said AGOA “has served as the cornerstone of the US-Africa commercial relationship for more than two decades.”
“We value the relationship with the United States, the world’s largest national market, and a country with which we have relationships that go well beyond trade,” Ramaphosa said.
The South African leader noted that, excluding exports of crude oil under AGOA, available data showed that the programme had substantially improved the export competitiveness of certain African products, especially textiles and apparel.
Apparel exports from Lesotho, Ethiopia, Mauritius, Madagascar and Kenya have not only led to the creation of tens of thousands of jobs, but these countries have become reliable producers for American consumers, Ramaphosa said.
Other parts of Africa’s manufacturing sector have also benefited under AGOA, he added.
“South Africa’s auto exports to the United States under AGOA have contributed to job creation in South Africa and in the auto supply chain within neighbouring countries,” he noted.
Due to this success, Ramaphosa said he would like to see AGOA extended for a longer period to attract US investments to come and build factories on the continent.
Shorter periods of extension impeded investment ambitions.
“We, therefore, want to see a much lengthier period of extension” of AGOA which is renewed every decade, he said.
“The United States and Africa … are going to be here for a long time. We are here for the long haul. So let us make AGOA a long-haul opportunity for all of us,” the president said.
The purpose of the forum is to discuss ways to expand trade and investment relations between the United States and sub-Saharan Africa, and the implementation of AGOA — including encouraging joint ventures between small and large businesses.
The three-day forum ends on Saturday.
NM/jn/APA