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Todd Moss, Assistant Secretary of State for African Affairs at the US State Department, said that the speed of African economic growth and development has received considerable attention from the United States and the international community. The future of sub-Saharan Africa will be even better, as more and more countries in the past decade have benefited from changes in economic policies, improvements in governance, and new investments in key sectors. In 2000, the United States took a big step in formulating the AGOA to help sub-Saharan Africa. It aims to provide any country or region in sub-Saharan Africa with free access to the United States market without a free trade agreement.
A total of 41 countries including the recently added Togo and Union of Comoros have been recognized by the United States as AGOA beneficiaries. Countries that meet the conditions of AGOA enjoy the duty-free status of almost any product exported to the United States. At present, nearly 6,500 products, from clothing to cars, from footwear to fruit, AGOA provides a mechanism for technical assistance to help countries obtain more trade benefits.
In 2007, the United States imported 98% of products from AGOA countries as duty-free imports, which is more favorable than similar products from other countries. This provides them with considerable market advantages. In the past year, trade between the United States and sub-Saharan Africa has reached as much as US$81 billion.
Moss said that since 2001, the non-oil imports of AGOA into the United States have almost tripled. Andrew Baukol, deputy assistant secretary of the Finance Ministry of Africa and the Middle East, said that expanding private investment in Africa is extremely important. In the past seven years, private capital flows into sub-Saharan Africa have increased by about five times, and the total amount has exceeded 50 billion U.S. dollars over the same period of last year. Africa’s economy has grown very fast in the past few years. Even in the face of some global pressure, growth may slow in the short term. Our goal is to find ways to increase progress in this area. The U.S. Department of the Treasury has almost 20 full-time technical consultants in Africa to help African countries develop the banking system and budget process.
Moss said that AGOA's intention is to provide access to the market by providing trade opportunities, in order to promote the basic elements of economic growth, but do not think AGOA intends to cover everything. The United States currently sees the interests of Africa from the perspective of global investors, especially African infrastructure. One of the major obstacles to expanding trade is Africa’s infrastructure.
The AGOA Forum brings together senior U.S. officials and African government ministers, as well as the United States and African business communities and civil society to exchange ideas and messages to promote the continued success of AGOA in order to achieve sustainable economic prosperity in Africa. However, critics have said that AGOA still has not fulfilled its promise that it has potential. Melvin Foote, Africa’s president, said that AGOA has been taken over by big companies. When AGOA comes into being, it may bring some promises. We seriously think about AGOA to assist African-American businesses, small businesses, women’s self-employed companies, and businesses that can more fully match companies in the African continent. However, Basically everything is as old as the larger companies still dominate AGOA.
Melvin Foote said that the benefit of AGOA is to maintain dialogue between the United States and African countries each year. This will bring benefits to Africa, such as the adoption of AIDS legislation and support for the fight against malaria.
Senior U.S. officials stated that the leaders of African countries in sub-Saharan Africa from July 14 to July 16 held the 7th Annual African Economic and Development Opportunities (AGOA) Economic Forum in Washington, which focused on encouraging private investment. Countries that contribute to AGOA expand trade and economic growth.
April 30, 2021