Browsing: Agoa

• African countries said to have ‘very high’ tariffs.
• US imposes 50% tariffs on Lesotho.
• Trump tariffs on Africa feared to shut down AGOA.

US tariffs threaten the wellbeing of African economies but at the same time, Africa trade tariffs remain comparatively high affecting trade growth, this according to the World Bank. According to Ajay Banga, the multilateral lender’s President, developing countries, especially in Africa, need to liberalize trade by lowering their tariffs.

The lender’s President is of the view that many African countries have higher tariffs than advanced economies. “Lowering them (tariffs) could offset the risk of reciprocal import taxes,” he advised.

Mr. Banga pointed out that “global uncertainty, triggered in recent months by U.S. tariffs and retaliatory measures announced by China and other countries is contributing to a more cautious business and economic environment.”

The World Bank president cautions that while the impact of US triggered tariffs varies country …

• The proposed AGOA extension signals a commitment to bolstering trade relations between the US and Africa.
• US Senators Chris Coons and James Risch have introduced the bipartisan Agoa Renewal and Improvement Act of 2024, aiming to integrate AGOA with the AfCFTA.
• Bill aims to refine AGOA’s eligibility criteria, increase transparency, and hold US agencies accountable for their advice to the president: Senator Risch

AGOA extension proposal

The US Congress has proposed extending the African Growth and Opportunity Act (Agoa) to 2041, covering all 54 African countries. Senators Chris Coons of Delaware and James Risch of Idaho introduced the bipartisan Agoa Renewal and Improvement Act of 2024, aiming to integrate Agoa with the African Continental Free Trade Agreement (AfCFTA) to foster intra-African supply chains.

Originally enacted in 2000, Agoa is set to expire next year. However, the proposed extension signals a commitment to bolstering trade relations between the United States and …

• High protection and heavy import dependency have left industries in Africa poorly prepared for international competition.
• The tendency of many African governments to assign a leading role to the state in creating and operating manufacturing firms makes industries in Africa hard to thrive.
• For decades, investments by African governments are often made with little regard to efficiency and the managerial capacity in target industries.

Africa Industrialization Day on November 20 is here, yet the region’s skies remain smokeless. While the region is endowed with $82 trillion worth of discovered natural resources, with the potential to contribute $30 billion a year in government revenue over the next 20 years, this potential remains untapped.

Africa’s failed industrialization

Sadly, Africa’s industrialization has been failing if not stagnating as many nations continue turning into customers of established manufacturing zones in China, Europe and India. For instance, Africa exports around 69 per cent of the …

United States officials and politicians have shown much interest and support for renewing the African Growth and Opportunity Act (AGOA) as its expiration date approaches in September 2025. The fate of this landmark legislation, which provides duty-free access to the US markets for some African countries, remains uncertain for the next 22 months but has significant implications for trade between the United States and Africa.…

• Africa Rising narrative paints a picture of a continent on the cusp of a major economic and developmental breakthrough.
• This upbeat assessment, however, stands in stark contrast to the realities of many African countries’ political instability, corruption, and threats from autocratic regimes.
• This disharmony between the narrative’s upbeat tone and the facts prompts the question: is there a need for the widespread optimism about Africa’s future, or is it misplaced?

The “Africa Rising” narrative, popularised in recent years, paints a picture of a continent on the cusp of a major economic and developmental breakthrough. This upbeat assessment, however, stands in stark contrast to the realities of many African countries’ political instability, ongoing corruption, and threats from autocratic regimes. The premature or even misplaced optimism of this narrative is called into question by a close analysis of these problems. This discrepancy between the narrative’s upbeat tone and the facts prompts the …

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.…

Until the Biden Administration, US-Africa trade relations had remained remarkably consistent. Africa Growth and Opportunities Act (AGOA), in place since October 2000 through five separate US administrations, has been the ‘centrepiece’ of this consistency.…

• Ongoing wars in Africa are bleeding billions from poor economies as investors flee the region.
• Sudan army is spending about $1.5 million per day fighting the Rapid Support Forces.
• IMF says Ethiopia’s GDP contracted from 9 percent in 2019 to 6.1 percent in 2020 as Tigray war intensified.

Wars in Africa are costing an arm and a leg, and throwing an awful wrench on poor economies that are hardly providing the bare minimum to their citizens. Take for instance the latest ongoing war in Sudan. Sudan Tribune notes that it is costing roughly $1.5 million every day for the Sudanese army to fight the Rapid Support Forces (RSF).

For Sudan, a country whose poverty rate rose from 64.6 percent in 2021 to 66.1 percent last year, $1.5 million is a huge sum of money to be wasted on senseless fighting.

Wars in Africa yielding economic crisis

Sudan is one of …