by Joseph Omoremi
CHICAGO – Expectations are high on the renewal of the African Growth and Opportunity Act (AGOA) for ten years as thousands of Americans including Rev Jesse Jackson petitioned for its timely re-authorization and enhancement to include the disbursement of the $55 billion earlier pledge for the African Union 2063 agenda and the $5 billion for the Special Purpose Investment Fund for Africa (SPIFA).
“We belief AGOA has played an integral role in creating good paying- jobs thereby reducing poverty, enhancing democracy and rule of law in Sub-Sahara Africa,” said recently by Fred Oladehinde, President of the Foundation for Africa before the U.S Ways and Means Committee.
AGOA was passed into law in May 2000 during the President Clinton administration to expand and stimulate economic expansion and trade between U.S. and sub-Saharan African as well as encourage economic integration of the sub-Saharan Africa’s into the global economy.
It is renewed every five years except in 2015 when President Barack Obama signed the Trade Preferences Enhancement Act (TPEA) into law. TPEA re-authorizes AGOA for ten years and the AGOA Civil Society Organization (CSO) networks are seeking for another ten years extension this time around.
He called on the U.S government to deliver on its $55 billion pledge for the 2063 African Union (AU) agenda during the US-African leaders summit. Oladele also called for accelerated commencement of the Transformation with Africa designed to invest over $350 million in financing Africa Digital Transformation.
Oladele explained that the AGOA’s CSO $5 billion fund meant to conduct training and capacity building for Diaspora-owned and women business, conduct the annual mandated AGOA sessions, conduct trainings and technical assistance to eligible countries also need urgent support of the U.S government.
SPIFA fund would also enhance “developing critical path analysis for AGOA-eligible countries as they prepare to graduate from AGOA benefits,” Oladele said in his presentation to the U.S. Ways and Means committee.
There are currently 32 out of 49 sub-Sahara African countries eligible for AGOA benefits and Oladele called for the inclusion of all the 49 sub-Sahara African countries “to foster and improve US-Africa trade and economic cooperation.”
He also called for tax incentives for US-businesses to “attract necessary investment and technology transfer for economic growth and development.”
AGOA benefits includes the provision of the most liberal access to US markets for any country or region without a free trade agreement, reinforced Africa reform and development efforts as well as allow access to US credit and technical expertise.
