Latest news with #AfricanGrowthandOpportunityAct
Fibre2Fashion
20 hours ago
- Business
- Fibre2Fashion
AAFA urges long-term AGOA renewal to boost US-Africa trade
Beth Hughes, vice president of trade and customs policy at the American Apparel and Footwear Association (AAFA), has delivered testimony before the Office of the United States Trade Representative (USTR), highlighting the importance of renewing the African Growth and Opportunity Act (AGOA) for calendar year 2026. Speaking at the annual review hearing (Docket Number USTR-2025-0012), Hughes stated that AGOA plays a pivotal role in driving US private-sector investment and employment across Africa and the United States. She shared testimonials from AAFA member companies, underscoring the impact of AGOA on business expansion and job creation. Hughes said that one member company recently inaugurated a new garment factory in Togo, employing over 250 local workers trained over the past eight months. The company plans to expand the workforce to 500, with finished goods shipped to a US-based warehouse that employs more than 100 Americans. Beth Hughes of AAFA has urged the USTR to renew AGOA for 2026, citing its critical role in boosting US investment and job creation in Africa and the US. She shared member success stories in Togo, Madagascar, Ghana, and Tanzania, and proposed enhancements like triennial reviews and improved customs systems. Hughes called AGOA a 'success story' and pushed for long-term renewal. She further noted that another US apparel company is preparing to construct a facility in Madagascar to relocate nearly 50 per cent of its production from China, Vietnam, and Indonesia. However, Hughes warned that this investment is entirely dependent on AGOA's renewal, as losing duty-free access would render the project unviable. In Ghana, a US company taking advantage of AGOA has become the country's largest private employer, with over 6,000 workers and plans to double that number by year-end. Much of the company's production has shifted from Asia to Ghana due to the cost competitiveness enabled by AGOA. Hughes also mentioned a long-standing AAFA member, founded in 1987, that has fully transitioned production from China to Madagascar and Tanzania since 2007. The company now employs over 10,000 workers—mostly women—and supplies 50 million garments annually to over 60,000 US small businesses, supporting around 3 million American jobs. She emphasised that AGOA's third-country fabric rule is vital, as it allows apparel manufacturers in lesser developed AGOA countries to source inputs from outside the continent while textile infrastructure in Africa is still being developed. At present, African suppliers provide only about 10 per cent of the cotton yarn and fabric used by local apparel manufacturers. To enhance AGOA's effectiveness and utilisation, Hughes said AAFA supports several targeted improvements. These include converting the annual eligibility review to a triennial cycle, allowing cumulation from African Union countries that have ratified the African Continental Free Trade Area (AfCFTA), and replacing outdated textile visa requirements with modern customs cooperation. She also recommended adjusting apparel quotas and revising the graduation criteria for AGOA beneficiaries. Calling AGOA a 'success story,' Hughes urged Congress and the Administration to renew the programme before the September 30 deadline and for the longest possible duration to provide certainty and encourage long-term investment. 'The time to act is now,' she said. 'AGOA has helped build a strong foundation for economic partnership, industrial growth, and mutual prosperity between the US and Africa. Let's not allow that progress to stall.' Fibre2Fashion News Desk (SG)
The Citizen
2 days ago
- Business
- The Citizen
Is the dtic sabotaging its minister?
Parks Tau appears to prefer the audacity of hope rather than the practicality of reality. The minister needs to position the dtic as the engine room for growth, but challenges abound – as does scepticism. Picture: GCIS In an interview last week, PowerFM's Mbuyiseni Ndlozi quizzed Minister of Trade, Industry and Competition Parks Tau about his department's plan to create 6.4 million jobs and support a million small and medium-sized enterprises and 441 000 subsistence farmers through a variety of initiatives it plans to roll out. Ndlozi's proposition to Tau was that members of the Department of Trade, Industry and Competition (dtic) who allow Tau to publish documents stating ambitious and completely unrealistic targets are sabotaging the minister since none of the numbers is remotely feasible. Tau's response centred on the audacity of hope rather than the practicality of reality. ALSO READ: Proudly SA launches online store – here's how to list your business on it The reality … The poor and declining state of various industries in South Africa has contributed to the poor growth and employment outcomes seen over the last two decades. Part of it has been attributed to the natural shifts inherent in some industries on the local and global landscape, and part to the policy and regulatory frameworks which – when well executed – are meant to help affected industries stay ahead of the curve. When they don't work well, such policies contribute to the decline and fall that impacts the nation at large. The dtic's mandate places it at the epicentre of ensuring continuous competitiveness and the creation of support mechanisms for new industries responsive to the issues of our time. ALSO READ: Transformation Fund offers second chance for inclusive reform The hope … Tau's hope for the reindustrialisation of the country lingers on the department's ability to resolve a few difficult conversations, both internally and internationally. On the international front, he has found himself vaulted to the forefront of the frankly impossible conversations regarding South Africa's trade relations with the US. US President Donald Trump has managed to lump his universal disdain for global trade with his now-defunct brotherhood with Elon Musk – who harbours personal disdain for the South African policy framework – in order to launch a tariff and ideological war on the country. Resolving this requires the dtic to navigate through the noise and lead the negotiation towards something resembling a settlement. South Africa's trade relationship has shifted from the favourable model of Agoa (the US's African Growth and Opportunity Act) – which enabled some South African goods to access the US market without tariffs. It now lies at the opposite extreme where tariff rates of 30% to 40% are proposed, with exceptions only made for those items that happen to matter to Trump. Tau's problem is that he is tasked with creating an economic and trade policy solution to a problem whose genesis has little to do with the trade relationship but is premised on various factors and issues far from the ambit of the dtic. President Cyril Ramaphosa's interventions, which have included a visit to the White House and the appointment of an envoy to manage the relationship, have so far borne little fruit. As Trump moved from the erratic tariff model unleashed on his 'Liberation Day' – which saw South Africa hit with a 34% tariff rate that was suspended pending direct negotiations – to the adjusted rate of 30%, it has become increasingly difficult to figure out if South Africa can present anything that placates the Trump administration. The fallout from the tariffs is expected to hit South Africa's exports and, in the absence of a structured solution, decimate some companies whose business models are highly dependent on the US market. ALSO READ: Is government's R100 billion Transformation Fund a pothole or highway to growth? Locally … On the local front, Tau is juggling a few balls on the policy and governance front. Pursuing an industrial policy framework fit for the problems of the day and enabling enough to unleash the country's industrial revival that Tau (and everyone else) covets requires the collaboration of many stakeholders within and outside the state. Finding the right model for collaboration is a difficult task that requires a meeting of the minds between those with an inclination to defend the practices and ideologies of yesteryear – the bureaucrats and politicians – and those with an eye to the future who require instruments that enable them to innovate fast enough to stay ahead of the competitive curve. Instances of delayed approvals or rejections that are subsequently overturned do not assist anyone. Take the proposed transaction between Peermont and Sun International that was abandoned because bureaucrats apparently could not convene a meeting on time to deliberate on the deal, or the Vodacom-Maziv deal that was on and off again. Tau's flagship programme aimed at growing the small- and medium-sized enterprises (SMME ) sector – the R100 billion Transformation Fund – is currently subject to public consultation and deliberations. If it sees the light of day, it might make a dent in the SMME sector, but it is unlikely to get us anywhere close to the employment numbers that underpin the department's mission. ALSO READ: Government called to take the lead in restoring the steel industry Own goals What also doesn't help the department is the range of own goals that keep popping up. In recent days, the dtic decided to refresh the board of the Industrial Development Corporation (IDC), submitting a list to cabinet that was approved. Only after the approval did it emerge that one of the recommended board members happened to not only owe the IDC but is also subject to litigation with the IDC itself. Quite how the vetting process could have missed this glaring anomaly, or why anyone with such a history with the institution would make himself available for a board seat to begin with, remains unclear. But someone has to explain it all if there is to be any sense of faith in the institutions that Tau oversees given their critical role in aiding the country's economic prospects. ALSO READ: DTIC and organised business can improve the business environment – BLSA The messy national lottery situation The fate of the national lottery licence – where Tau eventually announced a winner after a long process of deliberation – is even more murky as losing bidders insist on getting an explanation of how the adjudication was completed. The tender is one of the most lucrative ones in the country and, uniquely, is one of the tenders where there is an explicit expectation to deliver on social responsibility programmes. Any interruption to the continuity of the lottery system disrupts existing social responsibility programmes and creates an opening for more loosely-regulated online options to capture the gambling rands. The complexities of running a lottery are such that deep pockets are needed – and few have the combination of financial resources and technical expertise to get it done. Getting the lotto decision right is one of the processes the dtic should be expected to exercise with a much greater sense of vigilance. The current turn of events, however, indicates that such a threshold has not been met. While a new operator has been appointed, its confirmation as the winner was so late that it simply could not take up the job on the projected date. Such a delay means that the incumbent – Ithuba – has been informed that its term is over, yet the country depends on it to continue running the lotto until the new operator is ready. ALSO READ: GNU: Tau describes 'a new era of collaboration' with big businesses The difficulty with this turn of events is that the dtic – having set the rules for transition – should be explaining how it imagined it could reconcile the late announcement with the transition date if all bidders had explained how long their transition period needed to be either as continuing incumbents or new operators. In the absence of a cogent explanation, the courts have had to intervene and endorse an interim arrangement, which works on the premise that the new operators will be able to start at the end of the interim period. The adjudicators and evaluators appointed to run the process seem to have underdelivered for the dtic and the country. What happens now is that losing bidders are demanding an explanation of how the decision was made and whether it all passes the muster for integrity. Additional questions regarding the evaluation of bidders and the assessment of potential conflicts of interest will naturally emerge as part of the process of discovering how such complex tenders are assessed and whether South Africans get the best value for money. As we wait for the court processes to unfold, Ithuba will continue to run the lottery, which addresses the risk of interruption. ALSO READ: GNU: Tau describes 'a new era of collaboration' with big businesses Can the dtic explain and defend itself? What the dtic does in explaining its processes and defending the integrity of its systems will be an important reflection moment for the dtic: Can it subject its processes to external scrutiny; Will the bidders be able to make peace with how it all happened; and Will the country get to understand how those tasked with critical decisions that bind the nation in such large value contracts actually perform their jobs? If it turns out – as other bidders allege – that much of the processes leave a lot to be desired, Tau's mission to position the dtic as the engine room for the turnaround in the country's fortunes, will unfortunately invite more sceptics for the key future projects that underpin the dtic agenda. This article was republished from Moneyweb. Read the original here.
San Francisco Chronicle
5 days ago
- Business
- San Francisco Chronicle
Trump's pivot from aid to trade leaves Africa wary as it faces tariffs and uncertainty
HARARE, Zimbabwe (AP) — When U.S. President Donald Trump met five African leaders in Washington in July, his lack of familiarity with the continent was on display. He praised Liberian President Joseph Boakai's English — Liberia's official language — and gestured at another leader to wrap up remarks. But the bigger takeaway was Trump's pledge to transform U.S.-Africa relations: a shift from aid to trade, even as the region reels from steep tariffs and sweeping aid cuts. African leaders offered minerals from manganese to uranium and possibly lithium. Senegal's president even sought to leverage Trump's love of golf by inviting him to build a course. Yet many nations are anxious about Washington's new path. After slashing billions in foreign aid, including shutting down the U.S. Agency for International Development — which provided over $12 billion in humanitarian assistance in 2025 alone — the Trump administration says it is forging a new approach: 'commercial diplomacy.' Trade, not aid, is the order of the day. 'It is now truly our policy for Africa,' said Troy Fitrell, the top U.S. diplomat for Africa, when announcing the strategy in Abidjan, Ivory Coast, in May. Ambassadors will now be judged not by aid projects but on 'how well they support' local businesses and 'how effectively they advocate for U.S. business and the number of deals they facilitate,' he said. Africa accounts for less than 1% of U.S. goods trade, but Fitrell called it 'the world's largest untapped market,' projecting its purchasing power could surpass $16 trillion by 2050. Early deals, lingering doubts Washington touts quick progress: 33 agreements worth $6 billion in Trump's first 100 days, plus $2.5 billion in commitments at a U.S.-Africa business summit in June. Projects span grain storage and digital infrastructure in Angola, energy ventures in Rwanda, Sierra Leone and Congo, and tourism in Ethiopia. Still, many worry about the costs. Job losses and economic pain from tariffs are mounting even as Washington celebrates these wins. Trump did not invent the idea of trade over aid. African leaders have pushed for this since the 1970s. The problem, critics say, is the caveat: steep tariffs and uncertainty over the African Growth and Opportunity Act (AGOA), the U.S. flagship program for trade with the continent. 'In reality, these tariffs are not about trade balances. It's economic warfare,' said the Alternative Information and Development Centre, a South African NGO. Fears that jobs could go Trump has imposed a 30% tariff on selected South African goods and threatens another 10% for nations aligned with the BRICS bloc of developing economies. South Africa's Automotive Business Council says vehicle exports to the U.S. have plunged over 80%, warning that tariffs 'strike at the heart of South Africa's industrialization agenda.' More than 100,000 jobs, mostly in auto and agriculture, are at risk, the council says. Smaller nations are also reeling. Lesotho declared a state of disaster after being hit with 50% duties — the second-highest rate after China — before Trump announced a 90-day pause. About 12,000 textile jobs hang in the balance, according to Lesotho's Minister of Trade, Industry, and Business Development, Mokhethi Shelile. From vanilla farmers in Madagascar to cocoa growers in Ivory Coast and oil exporters in Nigeria, tariffs have shaken economies and raised doubts about Washington's intent. 'The U.S. certainly can't have it both ways,' said Bester Brendon Verster, an economist at Oxford Economics Africa. 'The 'aid to trade' stance risks leaving Africa behind once the U.S. has gotten what it wanted, which will probably be critical minerals." An agreement on the brink AGOA, enacted in 2000 and renewed in 2015, allows duty-free U.S. access for nearly 2,000 goods from 32 African nations. It expires in September, with no clear sign that it will be renewed. South Africa's trade minister warned it will be 'very difficult' to keep AGOA under current conditions. Fitrell said he is a 'big fan' of the deal but told African leaders they must do more to lobby Congress. Future arrangements may require 'much greater attention toward some form of reciprocity' to reflect Trump's push for U.S. economic interests, he said. Meanwhile, China is leveraging zero-tariff policies to expand its influence. In June, China — already Africa's biggest trading partner — said it plans to grant duty-free market access to 53 African nations. Still, Verster said some African nations might be cautious about strengthening ties with China, for fear of triggering retaliation from the U.S. 'Aligning with China … could possibly bring about more economic punishment from the U.S.," he said.
Los Angeles Times
5 days ago
- Business
- Los Angeles Times
Trump's pivot from aid to trade leaves Africa wary as it faces tariffs and uncertainty
HARARE, Zimbabwe — When President Donald Trump met five African leaders in Washington in July, his lack of familiarity with the continent was on display. He praised Liberian President Joseph Boakai's English — Liberia's official language — and gestured at another leader to wrap up remarks. But the bigger takeaway was Trump's pledge to transform U.S.-Africa relations: a shift from aid to trade, even as the region reels from steep tariffs and sweeping aid cuts. African leaders offered minerals from manganese to uranium and possibly lithium. Senegal's president even sought to leverage Trump's love of golf by inviting him to build a course. Yet many nations are anxious about Washington's new path. After slashing billions in foreign aid, including shutting down the U.S. Agency for International Development — which provided over $12 billion in humanitarian assistance in 2025 alone — the Trump administration says it is forging a new approach: 'commercial diplomacy.' Trade, not aid, is the order of the day. 'It is now truly our policy for Africa,' said Troy Fitrell, the top U.S. diplomat for Africa, when announcing the strategy in Abidjan, Ivory Coast, in May. Ambassadors will now be judged not by aid projects but on 'how well they support' local businesses and 'how effectively they advocate for U.S. business and the number of deals they facilitate,' he said. Africa accounts for less than 1% of U.S. goods trade, but Fitrell called it 'the world's largest untapped market,' projecting its purchasing power could surpass $16 trillion by 2050. Washington touts quick progress: 33 agreements worth $6 billion in Trump's first 100 days, plus $2.5 billion in commitments at a U.S.-Africa business summit in June. Projects span grain storage and digital infrastructure in Angola, energy ventures in Rwanda, Sierra Leone and Congo, and tourism in Ethiopia. Still, many worry about the costs. Job losses and economic pain from tariffs are mounting even as Washington celebrates these wins. Trump did not invent the idea of trade over aid. African leaders have pushed for this since the 1970s. The problem, critics say, is the caveat: steep tariffs and uncertainty over the African Growth and Opportunity Act (AGOA), the U.S. flagship program for trade with the continent. 'In reality, these tariffs are not about trade balances. It's economic warfare,' said the Alternative Information and Development Centre, a South African NGO. Trump has imposed a 30% tariff on selected South African goods and threatens another 10% for nations aligned with the BRICS bloc of developing economies. South Africa's Automotive Business Council says vehicle exports to the U.S. have plunged over 80%, warning that tariffs 'strike at the heart of South Africa's industrialization agenda.' More than 100,000 jobs, mostly in auto and agriculture, are at risk, the council says. Smaller nations are also reeling. Lesotho declared a state of disaster after being hit with 50% duties — the second-highest rate after China — before Trump announced a 90-day pause. About 12,000 textile jobs hang in the balance, according to Lesotho's Minister of Trade, Industry, and Business Development, Mokhethi Shelile. From vanilla farmers in Madagascar to cocoa growers in Ivory Coast and oil exporters in Nigeria, tariffs have shaken economies and raised doubts about Washington's intent. 'The U.S. certainly can't have it both ways,' said Bester Brendon Verster, an economist at Oxford Economics Africa. 'The 'aid to trade' stance risks leaving Africa behind once the U.S. has gotten what it wanted, which will probably be critical minerals.' AGOA, enacted in 2000 and renewed in 2015, allows duty-free U.S. access for nearly 2,000 goods from 32 African nations. It expires in September, with no clear sign that it will be renewed. South Africa's trade minister warned it will be 'very difficult' to keep AGOA under current conditions. Fitrell said he is a 'big fan' of the deal but told African leaders they must do more to lobby Congress. Future arrangements may require 'much greater attention toward some form of reciprocity' to reflect Trump's push for U.S. economic interests, he said. Meanwhile, China is leveraging zero-tariff policies to expand its influence. In June, China — already Africa's biggest trading partner — said it plans to grant duty-free market access to 53 African nations. Still, Verster said some African nations might be cautious about strengthening ties with China, for fear of triggering retaliation from the U.S. 'Aligning with China … could possibly bring about more economic punishment from the U.S.,' he said. Mutsaka writes for the Associated Press.
Daily Maverick
6 days ago
- Politics
- Daily Maverick
Eswatini accepts five ‘uniquely barbaric' foreign criminals deported from US
The deportees, from Cuba, Jamaica, Laos, Vietnam and Yemen, had criminal records which included convictions for murder, homicide and child rape. The Estwatini government has confirmed the arrival of US deportees with criminal records but insisted they posed no threat to the people of the country. US Department of Homeland Security spokesperson Tricia McLaughlin said the deportees, from Cuba, Jamaica, Laos, Vietnam and Yemen, had criminal records which included convictions for murder, homicide and child rape. They were 'so uniquely barbaric that their home countries refused to take them back', she added. Thabile Mdluli, the acting Eswatini government spokesperson, said that 'the government acknowledges the widespread concern' about the prisoners. 'Indeed, five inmates are currently housed in our correctional facilities in isolated units where people with similar offences are kept. The nation is assured that these inmates pose no threat to the country or its citizens.' She said the deportations followed months of engagement between Eswatini and the US, which would collaborate with the International Organization for Migration to return the five men to their countries of origin. She said Eswatini and the US had done 'rigorous risk assessments' to 'ensure the safety and security of citizens'. She added that Eswatini 'adheres to international agreements and diplomatic protocols regarding the repatriation of individuals, ensuring that due process and respect for human rights is followed'. Bheki Makhubu, who edits Eswatini's The Nation, told Daily Maverick he suspected that Eswatini had agreed to accept the convicts in exchange for avoiding US trade tariffs. He noted that the Trump administration had given Eswatini a complete pass on tariffs. 'Why would the US hit Lesotho with [50%] tariffs and leave us alone, unless they were negotiating with us to take their dangerous prisoners?' he asked. However, Makhubu also noted that the African Growth and Opportunity Act (Agoa), which gives Eswatini and other African nations duty-free access to the US market, was due to expire in September, 'so we don't know what Trump might do. But hey, we've been nice to him so perhaps he'll return the favour.' Asked to comment about Makhubu's belief that Eswatini had made a deal to avoid tariffs, Mdluli said, 'Unfortunately, the terms of the agreement remain classified information, so what people say remains just that — speculation.' CBS News reported in May that the US had asked Eswatini, Angola, Benin, Equatorial Guinea, Libya, Moldova and Rwanda to accept migrants who are not their citizens. According to US and other media, the US programme is causing concern as the Trump administration appears to be asking countries regardless of their human rights records. In June, the US flew eight deportees to South Sudan after the US Supreme Court overturned a lower court ban on the grounds that the men had not been given an adequate opportunity to legally oppose their deportations. DM
