AGOA - PARTNERING FOR GROWTH THROUGH TRADE

The African Growth and Opportunity Act (AGOA) has been the cornerstone of U.S. economic .policy and commercial engagement with Sub-Saharan Africa since 2000. AGOA offers duty-free access to the U.S. for over 1,800 product lines, in addition to over 5,000 products eligible under .the Generalized System of Preferences (GSP) program. Beyond oil, minerals and metals, these products include value-added agricultural and manufactured goods, such as processed food, apparel, and footwear. Forty countries are eligible forAGOA benefits in 2018. . .

EXPANDING AFRICAN MARKETS

USAID Southern Africa Tradeand Investment Hubsatihub.cominfo@satihub.com

Pretoria Trade Hub OfficeThe Corner Office410 Lynnwood RoadPretoria South Africa

USAID/Southern Africa100 Totius StreetGroenkloofPretoria, South Africausaid.gov/southern-africa-regional

Since 2001 non-oil exports from Sub-Saharan Africa have risen by nearly 200 percent, spurring .an estimated 300,000 direct jobs in beneficiary countries.

By providing new market opportunities for African exports, AGOA has helped bolster African .economic growth and alleviate poverty. AGOA has also fostered a more conducive environment for American investment and business interests as African markets continue to diversify and expand.

USAID TRADE AND INVESTMENT HUBS: PARTNERS FOR PROGRESS

The United States Agency for International Development (USAID) supports the utilization of AGOA via the East, West and Southern Africa Trade and Investment Hubs. The Hubs engage with public and private sector partners across the region to deepen regional integration, promote trade with the U.S. under AGOA, and attract investment that drives commercial expansion within the region and to global markets.

Together, the Trade and Investment Hubs facilitate U.S. investment across a range of key sectors, including agribusiness production and distribution, apparel, and light manufacturing, as well as financial and technology services, supporting nearly 50,000 jobs in Sub-Saharan Africa.

COUNTRIES CURRENTLY ELIGIBLE FOR AGOA BENEFITS

(The Hub’s AGOA Trading Partners in Blue)

MauritaniaGuinea RwandaBurkina Faso

MauritiusKenyaSao Tome &PrincipeCameroon

MozambiqueLesotho SenegalCape Verde

Liberia TogoSierra LeoneChad

Madagascar UgandaSouth Africa

CentralAfricaRepublic

Malawi ZambiaSwazilandComoros

Mali Tanzania

Republicof theCongo

Gambia NigerBenin Djibouti

Ghana NigeriaBotswana Ethiopia

NamibiaAngola* Cote d'IvoireGabon

*Potential Partner

,

THE SOUTHERN AFRICA TRADE AND INVESTMENT HUB: PROMOTING TWO-WAY TRADE IN SELECT REGIONAL VALUE CHAINS

Based in Pretoria, South Africa, the Southern Africa Trade and Investment Hub works with eight Southern Africa Development Community member states: Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland and Zambia. The Hub's dedicated Export Competitiveness team strives to boost Southern Africa's exports in competitive, non-resource-related sectors, including textiles and apparel; leather, footwear and accessories; and agricultural products.

According to the latest U.S. Trade Representative Biennial AGOA Report, South African .exports of transportation equipment increased from $76 million in 2001 to $1.3 billion in 2017, adding over 30,000 jobs; exports of agricultural products increased nearly sevenfold to $278 million; and exports of macadamia nuts totaled $49 million in 2017. AGOA also supports .85,000 jobs in South Africa's citrus industry..

Total two-way goods trade between the U.S. and Sub-Saharan Africa in 2017 was $39 billion up . .5.8 percent compared to $36.9 billion in 2015. U.S. goods imports were $24.9 billion, up from $18.8 billion in 2015 (primarily due to rising commodity prices).

As of 2017, the top five SSA exporters under AGOA were Nigeria ($6.1 billion), South Africa ($2.9 billion), Angola ($2.3 billion), Chad ($590 million) and Kenya ($408 million).

SOUTH AFRICA EXPORTS BY THE NUMBERS

EXPORTS VALUE OF

MACADAMIA

NUTS

OVER

3,800JOBS SUPPORTED

EXPORTS VALUE OF

TRANSPORTATION

EQUIPMENT

OVER

30,000JOBS SUPPORTED

EXPORTS VALUE OF

AGRICULTURAL

PRODUCTS

OVER

85,000JOBS SUPPORTED

*

* An additional 7,000 jobs during harvest season

“Since its enactment in 2000, AGOA has had an important and positive impact on U.S.-African .trade. AGOA has also provided incentives for reforms that promote rules-based, market-oriented .economies, and it has supported regional integration.” U.S. Trade Representative Robert Lighthizer

USAID TRADE AND INVESTMENT HUBS: DRIVING GROWTH THROUGH INVESTMENT

Bolstered by AGOA, U.S. investment stock in Sub-Saharan Africa stood at $29 billion in 2016 (latest year available). The three largest destinations for U.S. investment in SSA countries were Mauritius ($6.7 billion in 2016), South Africa ($5.1 billion), and Nigeria ($3.8 billion).

CREATING CHAMPIONS IN SOUTHERN AFRICA

AGOA has been particularly successful in the 15 countries with explicit AGOA utilization plans. .Kenya Lesotho, Madagascar, and Mauritius have leveraged AGOA utilization plans to grow and diversify their apparel industries, which now account for almost 90 percent of AGOA apparel exports. Meanwhile, South African exports to the U.S. have tripled since 2001, and the country is the second largest AGOA beneficiary by value. It accounts for 68 percent of non-oil AGOA exports to the U.S.

The Hub has assisted in the development of AGOA utilization (strategy) plans in Botswana, Zambia, Malawi, Lesotho, and Eswatini (Swaziland). It also assists with AGOA outreach and awareness building, education around FDA-requirements, and organic certification.

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United States Sub-Saharan Africa

U.S. - Sub Saharan Africa InvestmentStock