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Browsing: African Growth and Opportunity Act (AGOA)
- Continuing from the discussion of evolving US-Africa trade relations, a key aspect of this dynamic is the strategic objective of countering Chinese influence on the continent.
- By 2024, Africa is poised to undergo a significant shift in geopolitical and economic dynamics, emerging as a crucial arena for global powers such as China and the US.
- The evolving focus on Africa is driven by its transforming economic landscape, marked by rapid growth, a youthful population, and abundant resources, attracting attention from major players seeking strategic advantages.
By 2024, Africa will have witnessed the beginning of a new age in the geopolitical and economic dynamics of the world. In recent years, the continent has shifted its focus from humanitarian issues and developmental assistance to becoming an important strategic arena for the world’s leading powers, particularly China and the US. Several elements are coming together to highlight Africa’s growing importance internationally, driving this …
The African Growth and Opportunity Act (AGOA) has played a pivotal role in the economic relations between the US and Africa. Since its enactment by the US Congress in 2000, Agoa has offered African nations preferential access to American markets, promoting trade and economic growth. In recent years, however, AGOA has become a focal point in the intensifying competition between the US and China for influence in Africa.…
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Four African countries are staring at huge losses running into billions of dollars starting January 2024 following their expulsion from the African Growth and Opportunity Act (AGOA). The move will further worsen the unemployment crisis in the affected countries. Agoa offers thousands of jobs in apparels industry, especially to the youth.…
- Investment and trade between the two countries was valued at more than $600 million last year.
- Kenya’s exports last year increased to $7.9 million from $6.3 million in 2021, the country’s Economic Survey 2023 indicates.
- Imports from Indonesia were valued at $187.7 million having dropped from $307.5 million the previous year.
Kenya is now keen to increase trade volumes mainly exports to the Asean market, with its renewed ties with Indonesia. President William Ruto said investment scope will also be broadened to bring about a balance of trade that is currently in favour of the Southeast Asian country.
“We will seize our energies and create the necessary environment for increased trade between our countries,” President Ruto said on Monday.
Investment and trade between the two countries was valued at more than $600 million last year. Indonesian economy registered a growth of 5.3 per cent in 2022 compared to of …
- 20 investments in manufacturing, ICT, energy, health and agri-business have been signed in past two months.
- Latest Kenya-US trade ties place the East African country at a pole position on attracting more American dollars.
- Since President William Ruto took office in September 2022, Kenya-US engagements have been on a full throttle.
Deepening Kenya-US trade ties have started to pay dividends as American firms move to invest in East Africa's largest economy. With modern infrastructure, and skilled labour force, Kenya offers one of the best opportunities for US investors eyeing the region.
Currently, Kenya is the second most preferred destination by Americans seeking to invest in Africa. The 2023 US government review shows Kenya hosts 142 American firms while Nigeria has 195 conglomerates.
Latest developments, however, place Kenya at a pole position in attracting more American investors in the short to medium-term.
Deepening Kenya-US bilateral ties
Since President William Ruto took…
- President William Ruto is seen to be leaning more towards the West as opposed to his predecessor and former boss Uhuru Kenyatta, who had built a strong relationship with Asian countries.
- During Mr Kenyatta's 10-years rule, China became a major financier and developer of key projects among them the $3.6 billion Standard Gauge Railway (SGR).
- China and India have also been dominating the country’s trade as the Asian market accounts for 65.7 per cent of Kenya's total import bill.
Since coming into office in September last year, Kenya’s fifth President William Ruto has been keen on building and expanding alliances with countries that can help foster trade that remains in favour of foreign nations.
An interesting facet, however, has been his renewed interest in the United States and Europe, in what is seen as a slow but sure move to attract more investments while growing market for Kenya’s exports, manly…
- The influx of used clothes from the west in effect affects the development of textile industries in the EAC
- Five years later, a new administration, Covid-19 and the Russia-Ukraine war not to mention a stronger China economy, the US may reconsider EAC state’s position.
- EA States have 2 years to consider if they want AGOA renewed
In 2015, all major economies in East Africa, Kenya, Uganda, Tanzania, Rwanda and Ethiopia proposed to ban the importation of second-hand clothes but the US would have none of it.
The intention was good, even noble: Banning second-hand imports would strengthen the domestic textile industry which would create jobs and other positive ripple effects.
“The US claimed this proposal goes too far and violates the African Growth and Opportunity Act (AGOA), which aims to expand trade and investment on the continent,” the media reported.
Once the US pulled the AGOA card, the East African …
Kenya’s President William Ruto has asked his Cabinet Secretaries to act fast to deliver on his administration’s development programmes, “with speed and efficiency”.
“We made important promises to the people of Kenya, especially those at the bottom of the economic pyramid. And we must deliver,” the president said.
According to Ruto, there are no excuses not to deliver his mandate adding that the government must work as a team and drive the interests of the people.
He was speaking at a cabinet retreat on the implementation of the government’s development priorities for 2023.
In the run up to the August 2022 General Elections, Ruto gave a number of promises under his bottoms-up economic plan.He unveiled a five-point manifesto dubbed ‘The Plan’, which he said would address Kenya’s economic challenges.
Economic recovery in a post-Covid era was one of his main objectives. Ruto also pledged to invest at least Sh250 billion …
CCA president and chief executive officer Florizelle Liser said the forum allowed over 2,200 participants to network.
“CCA looks forward to partnering with the US Chamber to jointly convene the private sector as part of the Summit’s Africa Business Forum, which will help drive progress towards a trade and investment relationship that unlocks opportunity and growth for both the U.S. and Africa,” Liser said.
The US-Africa Leaders Summit will build American and African shared values and hopes to foster new economic engagement. It will also reinforce the two regions’ commitment to democracy and human rights. Among the issues to be discussed are mitigating the impact of COVID-19 and future pandemics and working collaboratively to strengthen regional and global health.
Climate change is another matter of concern that needs a response by respective governments. Nevertheless, Biden said he was hopeful the summit would be a success.…
Trade between Kenya and the US is governed by the World Trade Organization (WTO), given that both countries are members of the Organization.
The African Growth and Opportunity Act (AGOA), is perhaps the highlight of the strong trade relations between Kenya and the US; enacted in May 2000 and has since been renewed to 2025. Under the Act, Kenya qualifies for duty-free access to the U.S market, exporting products such as textiles, apparel, and handicrafts among many others.
The US views Kenya as a key strategic trade partner in the region, which is the second-largest beneficiary of the AGOA tariff benefits. In 2019, trade between the United States and Kenya was estimated at US$1.1 billion, recording a 4.9% increase from 2018. Top US imports from Kenya were apparel, estimated at US$454 million, edible fruit and nuts at US$55 million, titanium ores and concentrates at US$52million and coffee at US$34 million.…