Last week (14th-15th) the largest event the U. S. government shares with Sub-Saharan Africa nations; the AGOA Forum – brought together U.S. and African ministers, members of Congress, private sector and civil society representatives.
The 12th annual forum was titled “Enhancing African’s infrastructure for trade”.
Minister Francois Kanimba led the Rwandan delegation along with Ambassador James Kimonyo and other delegates from Rwanda from the private sector and Rwanda Development Board.
The meeting reviewed the idea of selling the opportunities that Sub Saharan Africa offered to U.S investors and consumers, while also acknowledging the challenges faced as well as the benefits of good quality competitive products from Africa under AGOA for U.S consumers and Importers.
Discussions resolved to engage the US corporations on a win-win basis in order to ensure that industrialization benefits for US investors went along with development benefits for Africa. Above all, emphasis was placed on Africa’s importance in the global economy, thereby necessitating AGOA’s extension beyond 2015 and the Third Country Fabric provision beyond September 2012.
Participants expressed serious concerns on the delay in extending the Third Country Fabric Provision which is set to expire in September 2012. Given the lead time of nine months required to place orders, the experts also noted that orders had dried up, making the extension an extremely urgent issue.
There is, therefore, a need to intensify lobbying from all fronts in order to have the extension renewed without further delay.
The Secretary of State Hillary Rodham Clinton opened the forum and paved her remarks for others by applauding the great success of the pivotal economic development program. “AGOA has helped to increase trade and investment and opened new doors of opportunity”.
“It’s led to new jobs, the rise of new sectors and new business opportunities for people in every country represented here, as well as the United States.”
She further stated that this week the US President, Barrack Obama approved a Presidential Policy Directive that outlines his vision with respect to U.S. policy toward sub-Saharan Africa. This document is drawn from and reflects that Directive.
This calls for partnership with African nations as they grow their economies and strengthen their democratic institutions and governance.
Highlighting this year’s topic, Minister Kanimba co-chaired a plenary section titled, “optimizing Africa’s transportation infrastructure to increase international trade”.
He noted the need of a “stronger partnership” between the countries in order to optimize trade.
It was further noted that the major challenge is finance, which requires more of public private partnerships and long term commitment more than the humanitarian approach. The session was on optimizing Africa’s transportation infrastructure to increase international trade.
The panel focused on National and Regional transportation infrastructural development initiatives. The three main areas of concern were maritime, roads and railway transportation.
It was noted that over 90% of merchandise transportation is done through maritime means and there is need to address the efficiency of the ports as they affected the competitiveness of SSA products.
Further, the panel noted that most of the roads connected to the ports were congested which caused inefficiency at the said ports, and particularly prevented land locked countries from taking advantage of AGOA.
As a result, the meeting acknowledged the need to develop an integrated transportation network which links roads and rails to the ports.
The Africa Growth and Opportunity Act (AGOA) is the cornerstone of U.S. economic engagement with the countries of Sub-Saharan Africa. AGOA has succeeded in helping nations grow and diversify their exports to the United States.
In 2011, 40 AGOA countries exported $53.7 billion in products to the United States contributing to economic growth for African nations as well as creating new opportunities for American businesses to export U.S. goods and services.
AGOA is important to Rwanda in that it improves the value addition of Rwandan products as a result of access to the American market and the closer collaboration with important US partners.
Over the years, AGOA Forum discussions have focused on how to improve AGOA utilization by beneficiary countries. This year’s annual AGOA Forum is a mix of programs and events that will take place during the month of June.
After the 2012 AGOA Forum Ministerial June held 14-15 in Washington, DC hosted the US government, the preceded event was a two-day civil society program held June 12-13.
The Corporate Council on Africa (CCA) will host its infra-structure conference June 18-20, and the U.S. Africa Business Conference (USABC) will be held in Cincinnati, Ohio June 21-22.
After the AGOA forum, the Honorable Minister Kanimba and the EAC- Secretary General were hosted at Bourbon Café in Washington DC to speak to the Diaspora community and the friends of Rwanda interested in investing in Rwanda and the East Africa region.
The platform was to discuss the current Economic development activities in Rwanda and the East Africa region and to see how the Diaspora should be part of these development activities.
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